NYSE: GD · Aerospace & Defense
General Dynamics
General Dynamics is a global aerospace and defense company with four segments: Aerospace (Gulfstream business jets and Jet Aviation services), Marine Systems (the leading designer and builder of U.S. Navy nuclear-powered submarines, plus surface ships), Combat Systems (land combat vehicles, weapon systems and munitions) and Technologies (IT and C5ISR solutions). 2025 revenue rose 10.1% to $52,550 million, with operating earnings of $5,356 million and net earnings of $4,210 million; the U.S. government accounted for 68% of revenue. Total backlog was $118.0 billion at year-end 2025 and $136.5 billion at the end of the second quarter of 2026. President Danny Deep will succeed Phebe Novakovic as CEO on January 1, 2027.
Last updated
Analysis last edited: October 31, 2026 · Financial data fetched: October 24, 2026 15:17 (SEC EDGAR) · Source 10-K filed: January 30, 2026
Built on10-K FY2025 · filed 2026-01-3010-Q (quarter ended 2026-10-04) · filed 2026-10-30Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 6.7%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- 10.2%
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- +5.5 pts
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- 0.9x
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 1.22x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- 5 of 5
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 21.2x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 0.67
Higher than 39% of 372 non-financial companies
Average yearly growth over the years shown
Higher than 26% of 311 non-financial companies
Latest fiscal year (FY2025)
Higher than 57% of 311 non-financial companies
Return on capital above (or below) its estimated cost
Higher than 35% of 304 non-financial companies
Below 0 means more cash than debt
Higher than 24% of 349 non-financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; trailing 12 months to 2026-10-04
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$365.10close on 2026-11-04
Market cap$98.72B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 21.2x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- 3.9x
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- 16.6x
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- 4.0%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- 1.6%
At FY2025 year-end: 21.8x
Earnings: trailing 12 months to 2026-10-04
At FY2025 year-end: 3.6x
Book value at FY2025 year-end
At FY2025 year-end: 15.4x
EBITDA for FY2025
At FY2025 year-end: 4.3%
Free cash flow for FY2025
Dividends per share for FY2025
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Oct 4, 2026.
- Net income$1.06B → $1.23B (vs. a year earlier)↑ +16.1%$1.06B → $1.23B (vs. a year earlier)
- Cash$4.33B → $4.39B (vs. previous quarter-end)↑ +1.3%$4.33B → $4.39B (vs. previous quarter-end)
- Long-term debt$6.26B → $6.26B (vs. previous quarter-end)→ +0.0%$6.26B → $6.26B (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Oct 30, 2026.
Key changes
Revenue up 12.9%; diluted EPS up 15.7%. Source sentence
Compared with the year-ago quarter, revenue increased 12.9%, operating earnings increased 14.7%, and diluted EPS increased 15.7%.
Backlog $220.3B. Source sentence
Backlog at the end of the quarter was $220.3 billion.
Operating margin 10.5%. Source sentence
Operating margin of 10.5% was a 20-basis-point expansion from the year-ago quarter.
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- GENERAL DYNAMICS CORP
- Headquarters
- RESTON, VA
- Incorporated in
- Delaware
- Fiscal year end
- 12/31
- Exchange & ticker
- NYSE: GD
- Industry
- Aerospace & Defense
- CIK
- 40533
- Website
- https://www.gd.com/ ↗
Workforce (as of FY2025 year-end)
Employees
117,000
Source: Form 10-K (FY2025) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q4 FY2026
Quarter end: December 2026. In past years, Q4 results were released 24–29 days after quarter end (Jan 28, 2026; Jan 29, 2025; Jan 24, 2024). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 24–29 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q3 FY2026 | Oct 4, 2026 | Oct 30, 2026 (+26 days) | Oct 30, 2026 10-Q (+26 days) |
| Q2 FY2026 | Jul 5, 2026 | Jul 29, 2026 (+24 days) | Jul 29, 2026 10-Q (+24 days) |
| Q1 FY2026 | Apr 5, 2026 | Apr 29, 2026 (+24 days) | Apr 29, 2026 10-Q (+24 days) |
| Q4 FY2025 | Dec 31, 2025 | Jan 28, 2026 (+28 days) | Jan 30, 2026 10-K (+30 days) |
| Q3 FY2025 | Sep 28, 2025 | Oct 24, 2025 (+26 days) | Oct 24, 2025 10-Q (+26 days) |
| Q2 FY2025 | Jun 29, 2025 | Jul 23, 2025 (+24 days) | Jul 23, 2025 10-Q (+24 days) |
| Q1 FY2025 | Mar 30, 2025 | Apr 23, 2025 (+24 days) | Apr 23, 2025 10-Q (+24 days) |
| Q4 FY2024 | Dec 31, 2024 | Jan 29, 2025 (+29 days) | Feb 7, 2025 10-K (+38 days) |
| Q3 FY2024 | Sep 29, 2024 | Oct 23, 2024 (+24 days) | Oct 23, 2024 10-Q (+24 days) |
| Q2 FY2024 | Jun 30, 2024 | Jul 24, 2024 (+24 days) | Jul 24, 2024 10-Q (+24 days) |
| Q1 FY2024 | Mar 31, 2024 | Apr 24, 2024 (+24 days) | Apr 24, 2024 10-Q (+24 days) |
| Q4 FY2023 | Dec 31, 2023 | Jan 24, 2024 (+24 days) | Feb 8, 2024 10-K (+39 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
Aerospace
Gulfstream business jets
Business jet design and manufacturing, with aircraft services.
Aerospace
Jet Aviation
Aircraft services and one of the world’s largest custom completion and refurbishment centers.
Marine Systems
Submarines and surface ships
Virginia- and Columbia-class nuclear submarines, DDG-51 destroyers and auxiliary ships, plus maintenance and modernization.
Combat Systems
Land vehicles, weapons and munitions
Combat vehicles and OTS munitions, artillery and energetics, including Ball Powder propellant.
Technologies
IT and C5ISR solutions
IT services and command, control, communications, computers, cyber, intelligence, surveillance and reconnaissance solutions.
From the Form 10-K, FY2025.
U.S., worldwide and country/regional share of flagship products/services
Only shares the company itself states (in its filings or press releases, sometimes citing a research firm) are shown. Scope and timing vary by figure — treat these as approximate.
Nuclear-powered submarines
U.S. Navy submarines
U.S. share
Leading designer and builder
Company-disclosed“Our Marine Systems segment is the leading designer and builder of nuclear-powered submarines … for the U.S. Navy.”
Worldwide share
—
Not disclosedBall Powder propellant (OTS)
Propellant
U.S. share
—
Not disclosedWorldwide share
World’s largest producer
Company-disclosed“the global leader in extruded propellant manufacturing and the world’s largest producer of the trusted Ball Powder propellant”
07
Recent strategic focusSite analysis
Recent developments.
2025 results
Revenue $52,550M (+10.1%); operating earnings $5,356M; Aerospace and Marine Systems revenue each grew about 16.5%.
Source: Form 10-K (FY2025)
Q3 2026
Revenue $14.6B (+12.9%), diluted EPS $4.49 (+15.7%), operating margin 10.5%; operating cash flow $1.7B. Orders of $98.8B lifted backlog to $220.3B. GD repaid $500M of debt, ending with $7B of debt and $4.4B of cash.
Source: Q3 2026 earnings release
Leadership
Board elected Danny Deep CEO effective January 1, 2027; Phebe Novakovic becomes Executive Chairman.
Source: Form 8-K (2026-10-08) — Item 5.02 Danny Deep elected CEO effective January 1, 2027
Rescission offer
Offered to rescind purchases of up to 1,010,925 shares bought in 401(k) plan accounts without registration; not expected to be material.
Source: Form 8-K (2026-08-04) — Item 8.01 rescission offer for 401(k) plan shares
Capex ÷ D&A (FY2025)
1.26x
Roughly matches depreciation — mostly maintenance/replacement
formulacapital expenditures ÷ depreciation & amortization
e.g.$1,161M ÷ $924M = 1.26x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
M&A spend (6-year total)
$203M
Latest year: $0
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $967M in FY2020 to $1.16B in FY2025
- Capex
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-01-30
08
Key figures at a glanceFrom SEC data
FY2020–FY2025, 6 years.
Revenue (FY2025)
$52.55B
As reported in the 10-K
Revenue CAGR (5 years)
+6.7%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($52,550M ÷ $37,925M) ^ (1÷5) − 1 = 6.7%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
10.2%
-0.7pt vs. 5 years ago
formulaoperating income ÷ revenue × 100
e.g.$5,356M ÷ $52,550M × 100 = 10.2%
ROE (FY2025)
17.7%▲favorable
6-year average: 18.4%
As reported in the 10-K
P/B (FY2025 end)
3.55x
formulafiscal year-end closing price ÷ book value per share
e.g.$336.66 ÷ $94.76 = 3.55x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
15.4x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($91,029M + $8,074M − $2,333M) ÷ ($5,356M + $924M) = 15.4x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +6.7% a year over 5 years (strong growth)
From $37.93B in FY2020 to $52.55B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ―
Operating margin held roughly flat: 10.9% → 10.2%
How much operating profit is left per $100 of revenue. It moved -0.7 points over 5 years — pricing power, cost control, and product mix all show up here.
- ―
Equity ratio is 44.8% (a middling level)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 6 of 6 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 18.4% over 6 years (latest: 17.7%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
No partners or suppliers named in the filings.
07 · what it does
Key activities
- Gulfstream aircraft manufacturing and services
- Nuclear submarine and surface ship construction
- Combat vehicles, weapons and munitions
- IT and C5ISR solutions
06 · what it draws on
Key resources
- About 117,000 employees
- 10 business units in four segments
- Shipyards, Gulfstream plants and munitions facilities
02 · why customers buy
Value propositions
- Business jets (Gulfstream), submarines and ships, combat vehicles and munitions, and technology services.
04 · how it keeps them
Customer relationships
- A 24/7 customer support center and on-call technicians for Gulfstream; long-term government programs.
03 · how it reaches them
Channels
- Contracts with the U.S. government (68% of 2025 revenue, including FMS) and other governments; direct sales of Gulfstream aircraft.
01 · who it serves
Customer segments
- U.S. government (68% of 2025 revenue)
- Business jet buyers
- Non-U.S. governments (direct and FMS)
09 · where money goes
Cost structure
FY2025, share of revenue ($52.55B)
- Selling, general & administrative4.9%
- Other operating costs (incl. cost of goods sold)84.9%
Operating profit left: 10.2% of revenue. Depreciation & amortization (inside the costs above): $924M. Capital spending: $1.16B.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
- Fixed-price, cost-reimbursement and time-and-materials contracts
- Aircraft sales and services
Value propositions, channels and customer relationships: Form 10-K (FY2025)
Designs, engineers and manufactures business jets, submarines and ships, combat vehicles and munitions, and technology services, mainly under U.S. government contracts.
01 what it draws on
Inputs & resources
- About 117,000 employees
- 10 business units in four segments
- Shipyards, Gulfstream plants and munitions facilities
02 what it does
Activities
- Gulfstream aircraft manufacturing and services
- Nuclear submarine and surface ship construction
- Combat vehicles, weapons and munitions
- IT and C5ISR solutions
03 who it serves
Customers
- U.S. government (68% of 2025 revenue)
- Business jet buyers
- Non-U.S. governments (direct and FMS)
04 how money comes in
How it earns
- Fixed-price, cost-reimbursement and time-and-materials contracts
- Aircraft sales and services
How the business makes money
- Gulfstream delivered 158 aircraft in 2025, up from 136.
- Total backlog $118.0B at December 31, 2025 (total estimated contract value $178.9B).
- Dividend raised for the 28th consecutive year in March 2025.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
General Dynamics depends on U.S. government contracts for most of its revenue.
Government as customer
U.S. government as main customer
68% of 2025 consolidated revenue came from the U.S. government.
Supports and constrainsTouches: Customers · How it earnsSource: Form 10-K (FY2025)
Trade & export rules
Export controls
Subject to regulations on investment, exchange controls and import-export control.
Constrains the businessTouches: CustomersSource: Form 10-K (FY2025)
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
Marine Systems
16,723 (32%)Technologies
13,471 (26%)Aerospace
13,110 (25%)Combat Systems
9,246 (18%)
Source: Form 10-K (FY2025) Segment revenue; total $52,550M.
10
Where it earnsSite analysis
Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.
Largest market (FY2025)
United States — 82% of revenue
Revenue by country / region (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
United States
43,314 (82%)Other North America
1,248 (2%)Europe
3,540 (7%)Asia/Pacific
2,001 (4%)Africa/Middle East
2,015 (4%)South America
432 (1%)
Source: Form 10-K (FY2025) Revenue by geographic area.
11
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
12
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
The U.S. government (68% of 2025 revenue, incl. FMS), non-U.S. governments, and business jet customers.
Named by the company
The U.S. government is the major customer.
What the filings disclose
Suppliers
Subcontractors and suppliers for ships, vehicles and aircraft.
Named by the company
No single supplier is named as material.
13
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
The 10-K describes competition by segment without naming competitors: Marine Systems has one primary competitor (also a partner on Virginia-class and a subcontractor on Columbia-class submarines); Combat Systems and Technologies face many U.S. and non-U.S. firms.
Competitors named in the 10-K
No competitor is named in the 10-K.
Peer group the company chose
2025 compensation peer group (14 companies), from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Peer data from proxies, an Aon survey and Pay Governance.
- 3Msite ↗
- Accenturesite ↗
- Boeingsite ↗
- Caterpillarsite ↗
- Cisco Systemssite ↗
- Deere & Companysite ↗
- Eatonsite ↗
- Emersonsite ↗
- Honeywellsite ↗
- Johnson Controlssite ↗
- Lockheed Martinsite ↗
- Northrop Grummansite ↗
- RTXsite ↗
- Textronsite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
14
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-01-30
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-01-30
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-01-30
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-01-30
| Line item | FY202010-K on EDGAR ↗ | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|---|
| Income statement ($M) | ||||||
| Revenue | 37,925 | 38,469 | 39,407 | 42,272 | 47,716 | 52,550 |
| Operating income | 4,133 | 4,163 | 4,211 | 4,245 | 4,796 | 5,356 |
| Pretax income | 3,738 | 3,873 | 4,036 | 3,984 | 4,540 | 5,103 |
| Net income (attributable) | 3,167 | 3,257 | 3,390 | 3,315 | 3,782 | 4,210 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 1.4% | 2.4% | 7.3% | 12.9% | 10.1% |
| Operating margincalcoperating income ÷ revenue × 100 | 10.9% | 10.8% | 10.7% | 10.0% | 10.1% | 10.2% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 8.4% | 8.5% | 8.6% | 7.8% | 7.9% | 8.0% |
| Balance sheet ($M) | ||||||
| Total assets | 51,308 | 50,073 | 51,585 | 54,810 | 55,880 | 57,249 |
| Total equity | 15,661 | 17,641 | 18,568 | 21,299 | 22,063 | 25,622 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 13,117 | 11,606 | 10,590 | 9,340 | 8,826 | 8,074 |
| Equity ratio | 30.5% | 35.2% | 36.0% | 38.9% | 39.5% | 44.8% |
| ROE | 20.2% | 19.6% | 18.7% | 16.6% | 17.4% | 17.7% |
| Cash flow ($M) | ||||||
| Operating CF | 3,858 | 4,271 | 4,579 | 4,710 | 4,112 | 5,120 |
| Investing CF | -974 | -882 | -1,489 | -941 | -953 | -1,284 |
| Financing CF | -903 | -4,590 | -3,471 | -3,094 | -3,369 | -3,190 |
| Free cash flowcalccash flow from operations − capital expenditures | 2,891 | 3,384 | 3,465 | 3,806 | 3,196 | 3,959 |
| Cash and equivalents | 2,824 | 1,603 | 1,242 | 1,913 | 1,697 | 2,333 |
| Per share & other | ||||||
| EPS ($) | 11.00 | 11.55 | 12.19 | 12.02 | 13.63 | 15.45 |
| BVPS ($) | 54.67 | 63.54 | 67.66 | 77.85 | 81.61 | 94.76 |
| Dividend per share ($) | 4.40 | 4.76 | 5.04 | 5.28 | 5.68 | 6.00 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 40.0% | 41.2% | 41.3% | 43.9% | 41.7% | 38.8% |
| P/E (x) | 13.5 | 18.1 | 20.4 | 21.6 | 19.3 | 21.8 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 10.6 | 13.4 | 15.2 | 15.4 | 13.8 | 15.4 |
| P/B (x)calcfiscal year-end closing price ÷ book value per share | 2.72 | 3.28 | 3.67 | 3.34 | 3.23 | 3.55 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Operating income | Net income | Diluted EPS |
|---|---|---|---|---|
| 2026-10-04 | — | $1.53B+14.7% | $1.23B+16.1% | — |
| 2026-07-05 | — | $1.46B+11.9% | $1.16B+14.4% | — |
| 2026-04-05 | — | $1.42B+12.0% | $1.13B+13.2% | — |
| 2025-12-31 † | — | $1.45B+2.0% | $1.14B-0.4% | — |
| 2025-09-28 | — | $1.33B | $1.06B | — |
| 2025-06-29 | — | $1.31B | $1.01B | — |
| 2025-03-30 | — | $1.27B | $994M | — |
| 2024-12-31 † | — | $1.42B | $1.15B | — |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
15
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
13.8%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$5,356M × (1 − 17%) ÷ $32,293M × 100 = 13.8%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
8.27%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $91.03B ÷ ($91.03B + $8.07B) = 91.9%
e.g.Debt weight: $8.07B ÷ ($91.03B + $8.07B) = 8.1%
e.g.WACC: 8.6% × 91.9% + 5.0% × (1 − 17%) × 8.1% = 8.27%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 6.8%–10.1% and ROIC − WACC runs +3.7 to +6.9 points. The sign holds across this range. This describes the latest year and does not predict future value creation.
WACC 8.27% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4.95% (10-year Treasury, 2026-11-03)
- β
- 0.67 (price-derived adjusted beta)
- Equity risk premium
- 5.5%
- Cost of equity
- 8.63%
- Cost of debt
- 4.98%
- Tax rate
- 17% (effective rate, FY2023–FY2025)
- Capital structure (equity : debt)
- 92% : 8%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 8.27%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).
Initial β: 0.67 (price-derived adjusted beta. Raw β 0.51, R² 0.12, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.513 + 0.33 = 0.674
termsβ (beta)
Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.5.0% + 0.67 × 5.5% = 8.6%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulafiscal year-end closing price × shares outstanding (= market cap)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
16
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (price on 2026-11-04)
4.5%
Perpetual FCF growth: g = r − FCF ÷ EV = 8.3% − 3.8%
Past FCF growth (FY2020–FY2025)
+6.5%
Compound annual rate, 5 years
Past revenue growth (FY2020–FY2025)
+6.7%
Compound annual rate, 5 years
Inputs (FY2025): free cash flow $3.96B (operating CF − capex); enterprise value $104.46B = market cap $98.72B (latest close, 2026-11-04) + debt $8.07B − cash and short-term investments $2.33B; r = WACC of 8.3% using this page’s default assumptions (β 0.67, risk-free 5.0%, market premium 5.5%).
Three WACC scenarios
The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$104.18B
FCF $3.96B ÷ (8.3% − 4.5%)
Theoretical ÷ actual enterprise value
1.00x
Below 1x: these assumptions value the business below the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 6.3% | 7.3% | 8.3% | 9.3% | 10.3% |
|---|---|---|---|---|---|
| 0% | 0.60x | 0.52x | 0.46x | 0.41x | 0.37x |
| 2% | 0.88x | 0.72x | 0.60x | 0.52x | 0.46x |
| 4% | 1.65x | 1.15x | 0.88x | 0.72x | 0.60x |
| 6% | 12.63x | 2.92x | 1.65x | 1.15x | 0.88x |
| 8% | — | — | 12.63x | 2.92x | 1.65x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.
17
Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.27x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -1.6%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 105%
Most profit comes from core operations.
- ✓
Days sales outstanding: 30 → 19 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-01-30
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-01-30
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$5,120M ÷ $4,210M = 1.22x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$5,356M ÷ $5,103M × 100 = 105%
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
e.g.($2,977M + $2,406M) ÷ 2 ÷ $52,550M × 365 = 19 days
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
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Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 86.6%
- Directors & officers (shares)
- <1%
- Everyone else (est.)
- 13.4%
- Directors & officers (voting power)
- <1%
- Institutional-ownership rank
- 239 of 416
- Beta (adjusted)
- 0.67
individuals and other non-13F holders
no separate voting figure; shown as shares
1 = most institutional; 57% of covered companies have more
above 1 = swings more than the market
- 234.3M shares reported by 2,210 13F filers ÷ 270.6M shares outstanding on 2026-07-05. Option positions are excluded.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table (percentage computed from the group’s share count ÷ shares outstanding); includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed None (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-07-05)
19
Strengths & weaknessesSite analysis
Strengths
1. Submarine leadership
Marine Systems is the leading designer and builder of nuclear-powered submarines for the U.S. Navy.
Evidence: Form 10-K (FY2025)
2. Large backlog
Total backlog jumped to $220.3 billion at the end of Q3 2026 from $136.5 billion at Q2, on $98.8 billion of orders including large Virginia- and Columbia-class submarine awards (book-to-bill 6.8 to 1).
Evidence: Q3 2026 earnings release
3. Dividend record
28 consecutive annual dividend increases through March 2025; declared $6.00 per share in 2025.
Evidence: Form 10-K (FY2025)
Weaknesses
1. Government dependence
The U.S. government accounted for 68% of 2025 revenue.
Evidence: Form 10-K (FY2025)
2. Fixed-price exposure
Production contracts are primarily fixed-price, so cost overruns fall on the company.
Evidence: Form 10-K (FY2025)
20
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
21.8x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
1.78%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
39%
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
4.3%
(Operating CF − capex) ÷ market cap
1. Rising dividend
Dividend per share rose from $4.40 (2020) to $6.00 (2025).
- What has to hold
- Steady defense cash flow.
- The other side
- Budget pressure.
Evidence: Form 10-K (FY2025)
2. Growing earnings
Net earnings rose from $3,167M (2020) to $4,210M (2025).
- What has to hold
- Backlog converts to revenue.
- The other side
- Fixed-price cost risk.
Evidence: Form 10-K (FY2025)
Dividends per share are amounts declared by the Board as stated in the 10-Ks.
21
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
2.3x
$2.33B vs. $1.01B
Interest coverage (operating income ÷ interest expense)
13.3x
$5.36B vs. $402M
Free cash flow ÷ dividends paid
2.5x
$3.96B vs. $1.59B (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | No decline in the record | — |
| Operating income | No decline in the record | — |
Covers only the 6 fiscal years on record (FY2020–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Backlog
Funded backlog $93.5B and total backlog $118.0B at December 31, 2025.
Source: Form 10-K (FY2025)
22
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
Since August 2026 the SEC and DOJ have been investigating Electric Boat's accounting on submarine contracts; General Dynamics cannot yet estimate any loss. The class action alleging shipyards conspired not to solicit naval architects and marine engineers was dismissed with prejudice against General Dynamics on May 18, 2026. Other pending matters involve government investigations, environmental, asbestos and employee claims, which the company does not expect to be material.
2 open matters (1 flagged as major) · 1 settled or closed
SEC and DOJ investigations of Electric Boat accounting
PendingGovernment investigationMajorSEC; U.S. Department of Justice Civil Division; Department of War Office of the Inspector General
In August 2026 the SEC and the DOJ Civil Division contacted General Dynamics about investigations into Electric Boat's accounting on its submarine contracts. GD received subpoenas from the DoW Inspector General and the SEC seeking documents on Electric Boat's recording and billing of costs, accounting and the related financial reporting and disclosures. GD cannot estimate any possible loss.
Source: Form 10-Q (quarter ended 2026-10-04) — Note on Commitments and Contingencies (Litigation)
401(k) plan rescission offer
PendingRegulatory proceedingGeneral Dynamics and plan participants
Shares bought in plan accounts from July 1, 2025 to June 30, 2026 were not registered; the company made a rescission offer for up to 1,010,925 shares and expects no material impact.
Source: Form 8-K (2026-08-04) — Item 8.01 rescission offer for 401(k) plan shares · Form 10-Q (quarter ended 2026-10-04)
No-poach class action (naval architects and marine engineers)
Closed, no actionAntitrustPutative class of naval architects and marine engineers v. General Dynamics, subsidiaries and other companies
Filed October 6, 2023 in the E.D. Va. alleging a Sherman Act conspiracy not to solicit engineers, seeking treble damages; the Fourth Circuit revived it in May 2025, and plaintiffs dismissed the case against General Dynamics with prejudice on May 18, 2026.
Source: Form 10-Q (quarter ended 2026-10-04) — Note on Commitments and Contingencies (Litigation)
Company statement: Other proceedings are described as ordinary-course and not expected to be material.
Based on Form 10-Q (quarter ended 2026-10-04) — Note on Commitments and Contingencies (Litigation), reviewed 2026-10-25. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
23
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Demand & macro
U.S. defense budgets
- Company disclosure (summarized from the 10-K)
- Revenue depends heavily on U.S. government funding and contract awards.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact High / Likelihood Med
- 2Costs & inflation
Fixed-price contract costs
- Company disclosure (summarized from the 10-K)
- Under fixed-price production contracts the company bears the risk of cost increases.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
- 3Competition & technology shift
Competitive awards
- Company disclosure (summarized from the 10-K)
- Competes with other contractors, smaller specialists and non-U.S. defense manufacturers; Marine Systems has one primary competitor it also partners with on submarines.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
- 4Demand & macro
Business jet demand
- Company disclosure (summarized from the 10-K)
- Gulfstream sales depend on business aviation demand.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
24
What to watch going forwardSite analysis
- Gulfstream deliveries and aerospace margin (13.3% in 2025).
- Submarine production pace in Marine Systems.
- Backlog ($220.3B at Q3 2026) and the SEC/DOJ investigations into Electric Boat accounting.
- CEO transition to Danny Deep on January 1, 2027.
25
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Other sources referenced in the analysis
Last updated
Analysis last edited: October 31, 2026 · Financial data fetched: October 24, 2026 15:17 (SEC EDGAR) · Source 10-K filed: January 30, 2026
Built on10-K FY2025 · filed 2026-01-30Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent General Dynamics’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.