General Dynamics Q1 Results Beat Analyst Estimates Led By Significant Jump In Aerospace Earnings

General Dynamics Corp’s (GD) first-quarter results topped Wall Street estimates, driven by a jump in its Aerospace earnings, with the division witnessing a significant margin expansion.  

Revenue rose 13.9% year-over-year (YoY) to $12.22 billion and surpassed a Street estimate of $11.85 billion. The company reported earnings of $3.66 per share, beating an analyst estimate of $3.48.

Net income rose 24.4% YoY to $994 million.

CEO Phebe Novakovic stated that the company continues to see steady growth and improvement in operating performance across the defense portfolio.

"The Aerospace segment saw a significant increase in profitability, reflecting the manufacturing efficiencies associated with reaching higher levels of production on our new aircraft models,” she said.

The Aerospace segment reported a 45.2% YoY increase in its first-quarter (Q1) revenue to $3.03 billion while operating earnings rose 69.4% to $432 million. The segment also witnessed a 210-basis-point margin expansion compared to the same quarter a year ago.

Marine Systems saw a 7.7% rise in revenue to $3.59 billion, while Combat Systems’ Q1 revenue rose 3.5% to $2.18 billion.

The Technologies segment witnessed a 6.8% rise in Q1 revenue to $3.4 billion.

The company recorded orders worth $10.2 billion during the quarter, while its backlog stood at $88.7 billion at the end of the quarter.

General Dynamics paid $383 million in dividends, invested $142 million in capital expenditures, and used $600 million to repurchase shares. It ended the quarter with $9.6 billion in total debt and $1.2 billion in cash and equivalents on hand.

Shares of General Dynamics rose over 3% in 2025 and declined over 8% in the past 12 months.

Also See: Boeing Q1 2025 Earnings: Investors Cheer Significant Narrowing Of Loss, Rise In Revenue

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