GD · General Dynamics Corporation

General Dynamics delivered a strong start to fiscal 2026, with double-digit growth in revenue and earnings. Revenue increased 10.3% to $13.5 billion, driven by broad-based growth across all four business segments. Marine Systems was the standout performer, with revenue surging 21.0% and operating earnings jumping 26.4%, suggesting strong execution on ship construction programs. The Aerospace segment also posted solid results, with revenue up 8.4% and operating margins expanding 70 basis points to 15.0%, reflecting favorable mix and pricing in business aviation. Overall operating margin improved slightly to 10.5%. Cash generation was a highlight of the quarter, with operating cash flow of $2.2 billion representing 192% of net earnings. This strong conversion supported $1.95 billion in free cash flow, enabling the company to return $405 million to shareholders via dividends and repurchase $217 million of common stock while still increasing cash on hand. The operational performance was complemented by robust order activity, resulting in a consolidated book-to-bill ratio of 2-to-1. Total backlog increased to $130.8 billion, providing strong visibility for future revenue. Management commentary indicated confidence in the company's positioning to drive additional performance throughout the year.