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Mar 30, 2025
General Dynamics Q1 2025 Earnings Report
General Dynamics reported a strong Q1 2025, with notable growth in earnings and revenue across all segments.
Key Takeaways
General Dynamics delivered a robust performance in Q1 2025, driven by exceptional growth in its Aerospace segment and overall margin expansion. EPS surged and operating income grew significantly, supported by strength across all business units.
EPS increased to $3.66, with net income reaching $994 million.
Revenue rose 13.9% year-over-year to $12.223 billion.
Aerospace revenue surged 45.2%, with a 69.4% increase in operating earnings.
Operating margin expanded by 70 basis points to 10.4%.
Revenue by Segment
Forward Guidance
General Dynamics projects continued strength in operating performance, especially in the Aerospace and defense segments, though working capital pressures are expected to persist.
Positive Outlook
- Continued Aerospace margin expansion due to production efficiencies.
- Defense segments showing steady revenue and earnings growth.
- Strong backlog of $88.7 billion supports future revenue visibility.
- Capital return through dividends and share repurchases remains strong.
- Dividend increased for the 28th consecutive year.
Challenges Ahead
- Negative free cash flow of $290 million due to working capital build.
- Net cash used by operations totaled $148 million in Q1.
- Backlog slightly declined compared to Q4 2024.
- Aerospace book-to-bill ratio declined to 0.8x from 1.2x.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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