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General Dynamics Corporation
S&P 500
🏹 Trader: 🎯 Near 52W High | BRS 75 Ready View all →
$103.4B
Market Cap
21.8
P/E
1.83
PEG
14.6%
ROCE
17.7%
ROE
0.31
D/E
10.2%
OPM
-3.5%
% from 52W High
64
α RS
🔍 GD is showing a high-conviction setup because it matches 4 of 37 tracked screener presets, RS Rating is 64, and an ECS of 53.7 last quarter. Net: Broad signal stack, not a recommendation. ? Conviction RS Rating ECS
Sources
Conviction 4/37 · RS Rating 64 · ECS 53.7
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🌏 Global Investor Returns
Currency-adjusted total returns for GD including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
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About

General Dynamics Corporation operates as an aerospace and defense company worldwide.

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📈 Growth Pattern
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⭐ Superinvestors Holding GD
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Manager Shares Value % of Fund Period
Steve Cohen Point72 Asset Management 184.8K $63.4M 0.08% Mar 2026
Jim Simons Renaissance Technologies LLC 30.2K $10.4M 0.02% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$14.1B
+8.1% YoY
Operating Income
$1.460B
+11.9% YoY
Operating Margin
10.4%
+40bps YoY
Net Income
$1.160B
+14.4% YoY
Diluted EPS
$4.24
+13.4% YoY
What Went Right
  • Record backlog of $136.5B, up 32% YoY; company-wide book-to-bill 1.4x and all segments above 1x
  • Aerospace revenue up 15.1% to $3.5B, operating earnings up 26.6%, margin up 130bps to 14.5%
  • Operating cash flow of $1.9B in Q2 and $4B in H1, with 142% free cash flow conversion for the quarter
What to Watch
  • Defense budget/reconciliation uncertainty; management emphasised the industry needs additional funds to gear up production for the threat environment
  • GDIT continues to face elongated procurement cycles and Technologies margin declined 20bps to 9.4%
  • Planned production gap between final G280 delivery in Q2 2027 and G300 entry in late 2027/early 2028
Management Guidance
  • Next-quarter revenue not quantified; Q3 aerospace margin expected to be about the same as Q2 with a better Q4
  • 2026 full-year EPS raised to $16.80-$16.90, revenue about $55.7B and operating margin 10.5%
  • Segment 2026 outlook: Aerospace ~$13.8B revenue at 14.7% margin; Combat ~$9.8B at 13.8%; Marine ~$18B at 7.4%; Technologies ~$14.1B at 9.4%
  • Free cash flow conversion now expected around 105%; tax rate ~17.5%; net interest ~$270M; capex 3.5%-4% of sales
Investor Lens
The investment thesis is stronger after this report. GD beat consensus by $0.28, raised full-year EPS guidance, posted a record backlog and 1.4x book-to-bill, and generated strong cash conversion with net debt down $1.2B to $3.2B. Aerospace and Marine are driving both growth and margin expansion, while order momentum across all segments supports the raised outlook. Key risks to monitor are second-half Marine revenue timing, any extended budget/reconciliation uncertainty, and the planned G280-to-G300 production gap.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Q2 EPS $4.24, revenue $14.1B, record backlog
Revenue
Revenue was $14.1B, up 8.1% YoY and 4.5% sequentially, with growth in all four segments. Aerospace led with +15.1% to $3.5B, Marine rose 10.4%, Technologies +4.1% to $3.6B, and Combat was up marginally at $2.3B.
Profitability
Net earnings rose 14.4% to $1.160B and diluted EPS was $4.24, up $0.50 or 13.4% YoY. Operating earnings increased 11.9% to $1.460B and beat consensus by $0.28.
Margins
Total operating margin was 10.4%, up 40bps YoY, and full-year guidance implies 10.5%. Aerospace margin expanded 130bps to 14.5%, Marine improved 40bps, Combat declined 30bps to 13.9%, and Technologies declined 20bps to 9.4%.
Balance Sheet
Operating cash flow was $1.9B in Q2 and over $4B in H1; free cash flow was $1.6B with 142% conversion. Cash ended at $4.3B, net debt at $3.2B, down $1.2B from last quarter, and the company repaid $500M of maturing notes.
Key Risks
Management flagged a planned G280-to-G300 production gap, with the final G280 in Q2 2027 and G300 entry late 2027/early 2028. Marine second-half revenue is expected to be lighter due to material receipt timing, while GDIT procurement cycles remain elongated and single-source supply chains are still a pacing item. Defence budget/reconciliation uncertainty was also noted as a watch item.
Outlook
For 2026, GD raised EPS guidance to $16.80-$16.90 and expects revenue of about $55.7B with an operating margin of 10.5%. Free cash flow conversion is now expected around 105%, and aerospace Q3 margins should look like Q2 with a stronger Q4.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-29
Record Q2 results with double-digit growth in revenue, operating earnings, and EPS, driven by strong performance across all segments and robust order activity. Backlog reached a record $136.5B, and full-year EPS guidance was raised to $16.80–$16.90.
Q1 2026 Q1 2026 2026-04-29
Q1 2026 saw double-digit growth in revenue, earnings, and backlog, with strong cash flow and robust order activity across all segments. EPS guidance was raised for the year, and record contract value and backlog were achieved, driven by demand in defense and aerospace.
Q4 2025 Q4 2025 2026-01-28
Fourth quarter and full-year 2025 saw strong revenue and earnings growth, record backlog, and robust order activity across all segments, with Marine and Aerospace leading. 2026 guidance projects continued growth, margin expansion, and high free cash flow conversion, supported by ongoing investments in capacity and productivity.
Q3 2025 Q3 2025 2025-10-24
Q3 2025 saw double-digit revenue and earnings growth, record backlog, and strong free cash flow, with robust performance in aerospace and marine systems. Guidance was raised, but management remains cautious due to the government shutdown and supply chain risks.
Q2 2025 Q2 2025 2025-07-23
Q2 2025 saw strong revenue, earnings, and cash flow growth, with record backlog and robust order activity across segments. Guidance for 2025 was raised, reflecting higher revenue and EPS expectations, while management continues to focus on operating leverage and supply chain improvements.
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📊 Analysis Methodology

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
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Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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