The earnings call presented a strong performance with significant revenue growth, record order activity, and backlog increases. However, challenges in supply chain and margin pressures in certain segments were noted. Overall, the positive aspects, particularly in order activity and backlog growth, outweigh the lowlights.

Company Guidance

During the General Dynamics Second Quarter 2025 Earnings Conference Call, the company reported earnings per diluted share of $3.74 on revenue of $13 billion. Operating earnings were $1.3 billion, with net income slightly over $1 billion. Revenue increased by 8.9% across three out of four business segments, and operating earnings rose by nearly 13%. The company exceeded Street EPS consensus by $0.19. On a year-to-date basis, revenue reached $25.3 billion, up 11.3%, and operating earnings of $2.6 billion reflected a 17.4% increase. The order activity was robust, with over $28 billion of orders and a book-to-bill ratio of 2.2:1. The Marine Systems segment was the largest contributor, with a backlog of $103.7 million, up 14%. The company generated $1.6 billion in operating cash flow, and free cash flow was $1.4 billion, with a cash conversion rate of 138%. Capital expenditures were $198 million, and the cash balance stood at $1.5 billion. The effective tax rate for the quarter was 17.7%. Overall, the company provided an optimistic outlook for 2025, expecting increased revenue and EPS growth.

Strong Revenue Growth

General Dynamics reported revenue of $13 billion, an 8.9% increase from the previous year. Three out of four business segments saw revenue increases.

Earnings and Operating Leverage

Earnings per share increased by 14.7%, and operating earnings rose by nearly 13%. The company outperformed the Street EPS consensus by $0.19.

Record Order Activity

The company secured over $28 billion in orders, with a book-to-bill ratio of 2.2:1, led by the Marine Systems segment.

Backlog Growth

General Dynamics ended the quarter with a record backlog of $103.7 million, up 14% from the previous year.

Cash Flow and Debt Reduction

Free cash flow for the quarter was $1.4 billion with a cash conversion rate of 138%. Net debt was reduced by $1.2 billion from the last quarter.

Marine Systems Revenue Surge

Marine Systems revenue increased by 22.2%, driven by Columbia-class and Virginia-class submarine construction.

Aerospace Segment Performance

Aerospace reported revenue of $3.06 billion, a 4.1% increase, with operating earnings up 26.3% from the previous year.

General Dynamics (GD) Earnings, Revenues Date & History

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GD Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Oct 22, 2025	2025 (Q3)	3.68 / -	3.35	―	―	―
Jul 24, 2025	2025 (Q2)	3.55 / 3.74	3.26	14.72% (+0.48)
Apr 23, 2025	2025 (Q1)	3.50 / 3.66	2.88	27.08% (+0.78)
Jan 29, 2025	2024 (Q4)	4.07 / 4.15	3.64	14.01% (+0.51)
Oct 23, 2024	2024 (Q3)	3.49 / 3.35	3.04	10.20% (+0.31)
Jul 24, 2024	2024 (Q2)	3.28 / 3.26	2.7	20.74% (+0.56)
Apr 24, 2024	2024 (Q1)	2.91 / 2.88	2.64	9.09% (+0.24)
Jan 24, 2024	2023 (Q4)	3.68 / 3.64	3.58	1.68% (+0.06)
Oct 25, 2023	2023 (Q3)	2.91 / 3.04	3.26	-6.75% (-0.22)
Jul 26, 2023	2023 (Q2)	2.56 / 2.70	2.75	-1.82% (-0.05)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

GD Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Jul 24, 2025	$316.94	$314.24	-0.85%
Apr 23, 2025	$273.40	$264.37	-3.30%
Jan 29, 2025	$259.79	$248.79	-4.23%
Oct 23, 2024	$301.15	$299.58	-0.52%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.