General Dynamics (GD) Q4 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Wed, January 28, 2026 astatine 9:32 AM CST 39 min read

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Wednesday, Jan. 28, 2026 astatine 9:00 a.m. ET

• Chairman and Chief Executive Officer — Phebe Novakovic

• President and Chief Operating Officer — Danny Deep

• Senior Vice President and Chief Financial Officer — Kim Kuryea

• Vice President, Investor Relations — Nicole Shelton

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Phebe Novakovic: Thank you, Nicole. Good morning, everyone, and acknowledgment for being with us. Earlier this morning, we reported 4th fourth net of $4.17 per diluted stock connected gross of $14.307 billion, operating net of $1.152 billion, and nett net of $1.143 billion. To concisely summarize, connected a quarter-over-quarter basis, gross is up 7.8%, and operating net are up 2%. Net net and diluted net per stock are comparatively level to the year-ago quarter, which you whitethorn callback was a terrific quarter. It included immoderate important one-time items, which drove unusually precocious margins, but much astir that later. The sequential comparisons are rather attractive.

Here, we bushed the anterior quarter's gross by 11.4%, operating net by 9.1%, nett net by 7.9%, and afloat diluted EPS by $0.29. Full-year numbers are perfectly terrific. Revenue is up 10.1%, operating net are up 11.7%, nett net are up 11.3%, and afloat diluted EPS is up 13.4%. Both gross and operating net were up for each of the segments led by Marine Systems and Aerospace, with gross maturation of 16.6% and 16.5%, respectively. They besides led the parade successful operating net with Marine Systems up 25.9% and Aerospace up 19.3% for the year. All of this follows terrific gross and net maturation successful 2024 implicit 2023.

It would look that we bushed analysts' statement for some the twelvemonth and the quarter. So let's determination connected to the concern units. First, Aerospace. In Aerospace for the year, we experienced continuing maturation of some gross and earnings. Continuing beardown request for Gulfstream aircraft, wide spot successful Gulfstream work business, and continued maturation and show betterment astatine Jet Aviation. In the quarter, Aerospace had gross of $3.788 cardinal and net of $481 million. This represents a 1.2% summation successful revenue, but a $104 cardinal alteration successful operating net connected a quarter-over-quarter basis.

While the earning numbers are precise bully connected a standalone, they bash not comparison favorably to a standout 4th fourth successful the anterior twelvemonth aided by a fig of discrete affirmative items that were important increments to earnings. However, the sequential numbers are precise affirmative with a 17.1% summation successful revenue, coupled with an 11.9% summation successful operating earnings. Importantly, for the year, Aerospace gross of $13.1 cardinal is 16.5% greater than 2024. This is connected apical of a 30.5% maturation successful 2024 implicit 2023. Revenue maturation was driven successful ample portion by the transportation of 158 caller aircraft, which is 22 much than the twelvemonth ago. Earnings of $1.75 cardinal are up 19.3% implicit 2024.