General Dynamics (GD) — Company Research
Last Updated: 4 June 2026
General Dynamics is a diversified aerospace and defence company spanning four very different businesses: Gulfstream business jets, nuclear and conventional submarines and warships, land combat vehicles and munitions, and government IT and technology services. That breadth makes it unusual among the defence primes — roughly a quarter of revenue comes from selling private jets to corporations and wealthy individuals, while the rest is anchored in long-cycle US and allied defence programmes. FY2025 (year ended 31 December 2025) was a record year: revenue rose 10.1 percent to $52.6 billion, diluted EPS climbed 13.4 percent to $15.45, operating cash flow reached $5.1 billion and backlog grew about 30 percent to $118 billion. This report works through the segments, the financials and the risks using only figures from General Dynamics' own filings and releases.
1. Company Snapshot
| Field | Value |
|---|---|
| Company | General Dynamics Corporation |
| Ticker / Exchange | GD / NYSE |
| Sector | Defence & Aerospace |
| Headquarters | Reston, Virginia, USA |
| CEO / Leadership | Phebe N. Novakovic (Chair & Chief Executive Officer; CEO since 2013) |
| Employees | More than 110,000 |
| Market cap | ~$91.4 billion (June 2026, share price ~$338.05) |
| Revenue (FY2025) | $52,550 million ($52.6 billion) |
| Net earnings (FY2025) | $4.2 billion |
| GAAP diluted EPS (FY2025) | $15.45 |
| Free cash flow (FY2025) | $3.96 billion |
| Backlog (31 Dec 2025) | $118 billion (total estimated contract value $179 billion) |
| Dividend | Annualised ~$6.00/share; yield ~1.8% |
2. Bull & Bear Case
Bull Case
- Record submarine and shipbuilding backlog: Marine Systems is the largest segment, riding the Columbia-class and Virginia-class submarine programmes; group backlog reached $118 billion at year-end 2025 and $130.8 billion by Q1 2026.
- Gulfstream cash engine inflecting: Aerospace delivered record Q1 2026 volumes (38 Gulfstream aircraft) with the new G800 carrying strong gross margins, lifting a high-return, non-defence profit stream.
- Broad-based growth and book-to-bill above 1: All four segments grew revenue and earnings in 2025, with full-year book-to-bill of 1.5x signalling demand ahead of deliveries.
- Strong cash conversion and shareholder returns: FY2025 operating cash flow of $5.1 billion was 122 percent of net earnings; the company cut debt by $749 million and paid $1.6 billion in dividends while raising the payout.
Bear Case
- Shipbuilding margin and schedule risk: Marine Systems still earns thinner margins (~7 percent) than its peers, and submarine programmes carry labour and supply-chain execution risk.
- Aerospace cyclicality: Business-jet demand is tied to corporate confidence and the economic cycle, making roughly a quarter of revenue more volatile than pure defence work.
- Government and budget dependence: The three defence segments rely on US and allied budgets exposed to continuing resolutions, shutdowns and procurement shifts.
- Premium multiple on a large base: At a low-20s P/E on a $52 billion revenue base, the shares leave limited room for a Gulfstream demand wobble or a shipbuilding charge.
3. Business Segments
General Dynamics reports four segments. The table shows FY2025 revenue and each segment's share of the $52,550 million total.
| Segment | % of revenue | What it is |
|---|---|---|
| Marine Systems | ~32% ($16.7bn) | Nuclear submarines (Columbia and Virginia classes) and surface ships, built at Electric Boat, Bath Iron Works and NASSCO. |
| Technologies | ~26% ($13.5bn) | Government IT, C4ISR, cyber and mission-support services (GDIT) plus Mission Systems hardware. |
| Aerospace | ~25% ($13.1bn) | Gulfstream business jets and aircraft services — the group's commercial, high-margin franchise. |
| Combat Systems | ~18% ($9.2bn) | Land combat vehicles (Abrams, Stryker), wheeled vehicles, weapons systems and munitions/ammunition. |
4. Business Model & Moat
How it makes money. Three of the four segments earn long-cycle revenue from US and allied government contracts that convert from backlog over many years. The fourth, Aerospace, sells Gulfstream jets and aftermarket services to corporations and individuals, generating cash on a faster cycle and at higher margins than defence work.
Where the moat comes from. In submarines, General Dynamics' Electric Boat is one of only two US yards able to build nuclear-powered boats — an effectively un-replicable position protected by decades of investment, security clearances and national-security priority. In business jets, Gulfstream commands a premium brand, an installed fleet and a global service network that lock in recurring revenue.
What can erode it. The defence segments are price-negotiated and budget-dependent, and shipbuilding labour and supply-chain constraints can compress margins. Aerospace, by contrast, is exposed to the broader economic cycle and corporate sentiment.
5. Financial Health
All figures below come from General Dynamics' earnings releases and consolidated statements. The annual table runs through the most recently completed fiscal year, FY2025.
| Year | Revenue ($m) | YoY % | GAAP EPS | Adjusted EPS | Dividend/share | Long-term debt YE ($m) |
|---|---|---|---|---|---|---|
| 2021 | 38,469 | — | $11.55 | — | $4.76 | — |
| 2022 | 39,407 | +2.4% | $12.19 | — | $5.04 | — |
| 2023 | 42,272 | +7.3% | $12.02 | — | $5.28 | — |
| 2024 | 47,716 | +12.9% | $13.63 | — | $5.68 | 7,260 |
| 2025 | 52,550 | +10.1% | $15.45 | — | $6.00 | 7,007 |
General Dynamics does not report a non-GAAP adjusted EPS; the Adjusted EPS column is therefore shown as not applicable, and GAAP diluted EPS is the headline figure. Dividend-per-share figures reflect the declared quarterly rate annualised. Long-term debt for 2021–2023 is shown as a dash where the year-end balance-sheet split was not captured from a primary source; total debt fell to $8.0 billion at year-end 2025 (net debt $5.7 billion).
| Quarter | Revenue ($m) | Adjusted EPS | GAAP EPS |
|---|---|---|---|
| Q1 2026 | 13,500 | — | $4.10 |
| Q4 2025 | 14,379 | — | $4.17 |
| Q3 2025 | 12,900 | — | $3.88 |
| Q2 2025 | 13,000 | — | $3.74 |
| Q1 2025 | 12,200 | — | $3.66 |
| FY 2025 total | 52,550 | — | $15.45 |
The bold row shows full-year 2025 revenue of $52,550 million and GAAP diluted EPS of $15.45. Quarterly revenue figures for 2025 are rounded as reported; they sum to the audited full-year total.
6. Valuation
Raw metrics, June 2026. Not opinions on whether the stock is cheap or expensive.
| Metric | Value |
|---|---|
| Market cap | ~$91.4bn (270.4m shares × ~$338.05) |
| Trailing P/E (GAAP) | ~21.9x (price ~$338.05 / FY2025 GAAP EPS $15.45) |
| P/E (forward) | ~20.5x (price ~$338.05 / 2026 EPS guidance midpoint ~$16.50) |
| P/S (TTM) | ~1.74x (market cap ~$91.4bn / FY2025 revenue $52.55bn) |
| P/FCF | ~23.1x (market cap ~$91.4bn / FCF $3.96bn; FCF = operating CF $5.12bn − capex $1.16bn per FY2025 cash flow statement) |
| EV/EBITDA (TTM) | ~15.5x (EV ~$97.1bn / EBITDA ~$6.28bn; EBITDA = FY2025 operating earnings $5.36bn + D&A $0.92bn) |
| Enterprise value | ~$97.1bn (market cap ~$91.4bn + total debt $8.0bn − cash $2.3bn per FY2025 balance sheet) |
| 52-week high | $369.70 |
| 52-week low | $268.10 |
| Short interest (% of float) | ~1.04% (December 2025) |
| Days to cover | ~2.39 |
7. Growth Drivers
The biggest driver is submarine production. Marine Systems revenue grew about 17 percent in 2025 and 21 percent in Q1 2026, led by the Columbia-class (the US Navy's next ballistic-missile submarine) and Virginia-class programmes, with margins improving as the yards work through their ramp. The order book here is deep and long-dated.
The second driver is Gulfstream. The G700 and new G800 are now in volume delivery; the company posted record first-quarter deliveries of 38 aircraft in 2026 with the G800 carrying strong gross margins, supporting Aerospace revenue and cash. Combat Systems is benefiting from elevated European demand for vehicles and munitions, while Technologies provides steady, cash-generative IT and C4ISR work. Management raised its 2026 EPS guidance to $16.45–$16.55. Track the wider defence sector and macro calendar on the ChartsView Live Charts and Economic Calendar pages.
8. Peer Comparison
| Peer | Market cap (June 2026) | Key 2025 metric |
|---|---|---|
| RTX Corporation (RTX) | ~$233bn | FY2025 revenue ~$84bn |
| Lockheed Martin (LMT) | ~$119bn | FY2025 revenue ~$74bn |
| General Dynamics (GD) | ~$91bn | FY2025 revenue $52.6bn; backlog $118bn |
| Northrop Grumman (NOC) | ~$76bn | FY2025 revenue $42.0bn |
| Huntington Ingalls (HII) | ~$15bn | Pure-play naval shipbuilder; FY2025 revenue ~$11.7bn |
9. Insider Activity
Recent Form 4 activity shows insider selling, principally by the chief executive, with no open-market purchases reported in the period.
| Name | Date | Type | Shares | Price | Value | Plan Type |
|---|---|---|---|---|---|---|
| Phebe N. Novakovic (Chair & CEO) | 11 Mar 2026 | Sale | 32,918 | ~$354 | ~$11.6m | Open-market (two transactions) |
Following the March 2026 sales, Novakovic directly held about 766,457 shares, with additional indirect holdings through the company 401(k) plan and a limited liability company.
10. Key Risks
- Shipbuilding execution (Operational): Marine Systems carries thinner margins and significant labour and supply-chain risk on complex, multi-year submarine programmes.
- Aerospace demand cyclicality (Macro): Business-jet orders depend on corporate confidence and the economic cycle, making roughly a quarter of revenue more volatile than defence work.
- Government and budget dependence (Regulatory/Macro): The defence segments rely on US and allied budgets exposed to continuing resolutions, shutdowns and shifting procurement priorities.
- Contract cost estimation (Operational): Earnings depend on estimates of cost to complete long-cycle contracts; adverse revisions can reduce reported margins.
- International and supply-chain exposure (Operational): Global operations and reliance on subcontractors and raw materials add execution and geopolitical risk.
11. Recent Developments
- 29 Apr 2026 — Q1 2026 results. Revenue rose 10.3 percent to $13.5 billion and diluted EPS rose 12 percent to $4.10; backlog reached $130.8 billion and management raised full-year 2026 EPS guidance to $16.45–$16.55.
- 29 Apr 2026 — Gulfstream record. Aerospace delivered 38 aircraft, the highest first-quarter total in Gulfstream history, with the G800 posting strong gross margins.
- 28 Jan 2026 — FY2025 results. Record full-year revenue of $52.6 billion, diluted EPS of $15.45, operating cash flow of $5.1 billion and backlog of $118 billion.
- 11 Mar 2026 — Insider sale. CEO Phebe Novakovic sold 32,918 shares at around $354 in open-market transactions.
12. Key Dates
- 29 Jul 2026 — Expected Q2 2026 earnings release.
- 10 Apr 2026 — Most recent quarterly dividend ex-dividend date.
- 28 Jan 2026 — Fourth-quarter and full-year 2025 results released.
- 29 Apr 2026 — First-quarter 2026 results released.
Discuss this company with other investors on the ChartsView Forum.
Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company filings, press releases, and official data. ChartsView does not use analyst opinions or third-party ratings. Always conduct your own due diligence and consider your personal financial situation before making investment decisions. Past performance is not indicative of future results.
Loading research report…
13. Thesis Verdict
The central thesis. General Dynamics is a diversified aerospace and defence company spanning Gulfstream business jets, nuclear submarines and warships, land combat vehicles and munitions, and government technology services. FY2025 was a record year, with revenue up 10.1 percent to $52.6 billion, GAAP diluted EPS up 13.4 percent to $15.45, and operating cash flow of $5.1 billion, on a backlog of $118 billion. The main drivers are the Columbia- and Virginia-class submarine ramp at Marine Systems and record Gulfstream G700 and G800 deliveries, and management raised 2026 EPS guidance to $16.45-$16.55.
What would confirm or break it. Continued submarine-margin improvement, sustained Gulfstream demand and book-to-bill above 1 would confirm the bull case. The thesis would weaken on shipbuilding execution charges, a cyclical downturn in business-jet demand, or US or allied budget disruption affecting the defence segments.
Watchpoints
- ConfirmsQ2 2026 earnings (55 days) landing in line with or above management guidance.
- ConfirmsEvidence supporting the "Record submarine and shipbuilding backlog:" thesis continuing to build across subsequent filings.
- InvalidatesMaterialisation of the "Shipbuilding execution (Operational):" risk, or any disclosure that fundamentally alters the capital-return or growth profile stated by management.
Diagnostic grid
Generated by ChartsView research tooling. Thesis strength measures how well the evidence in this report supports the company's stated thesis — it is NOT a buy/sell rating or price target. ChartsView is not authorised by the FCA to provide regulated investment advice. Generated 4 Jun 2026.