Executive Summary
General Dynamics Corporation reported QQ1 2025 revenue of $12.223 billion with a gross profit of $1.893 billion and a net income of $0.994 billion, translating to EPS of $3.69 for the quarter. The company produced a gross margin of 15.49%, an operating margin of 10.37%, and a net margin of 8.13%. Year-over-year (YoY) revenue rose about 2.1%, while quarter-over-quarter (QoQ) revenue declined about 8.4% as seasonality and timing of program deliveries weighed on the latest quarter. Operating results benefited from a favorable product mix and cost discipline, yet the quarter was marked by a material negative swing in cash flow from operations (CFO), with CFO at -$148 million and free cash flow at -$290 million. Management commentary is not included in the provided data, so explicit guidance or qualitative outlook from the call could not be embedded. The balance sheet shows solid asset backing and a leveraged capital structure, with total assets of $56.58 billion and total debt of $11.51 billion, while cash and cash equivalents stood at $1.24 billion. The company continues to finance returns for shareholders through dividends and buybacks, reflected in $383 million of dividends paid and $600 million of share repurchases during the period. Overall, GD demonstrates resilient profitability and a diversified, defense-centric growth profile, but near-term cash flow pressures and elevated leverage warrant close monitoring of working capital dynamics and contracting cadence.
Key Performance Indicators
QoQ: -11.08% | YoY:11.82%
Key Insights
Revenue: $12.223B in QQ1 2025; YoY +2.06%, QoQ -8.36%
...
Financial Highlights
Revenue: $12.223B in QQ1 2025; YoY +2.06%, QoQ -8.36%
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
12.22B |
2.06% |
-8.36% |
| Gross Profit |
1.89B |
5.17% |
-9.21% |
| Operating Income |
1.27B |
9.69% |
-10.89% |
| Net Income |
994.00M |
9.83% |
-13.41% |
| EPS |
3.69 |
11.82% |
-11.08% |
Key Financial Ratios
operatingProfitMargin
10.4%
operatingCashFlowPerShare
$-0.55
freeCashFlowPerShare
$-1.08
dividendPayoutRatio
38.5%
Management Commentary
No earnings call transcript provided in the data set. As a result, management quotes or narrative themes from an actual QQ1 2025 call could not be incorporated. If a transcript becomes available, key themes would typically include: strategic priorities (program execution across Aerospace, Marine Systems, Combat Systems, Technologies), order/backlog visibility, cost control initiatives, inflation/commodity exposure, and near-term delivery cadence. Given the absence of transcript data, this section cannot be populated with verbatim management insights.
Forward Guidance
No explicit forward guidance is contained in the provided data. Absent official management targets, the outlook for GD will largely hinge on the trajectory of U.S. defense budgets, program awards and execution cadence across its four segments, and the ability to convert backlog into revenue with stable margins. Investors should monitor: (1) defense spending signals and potential backlog evolution, (2) program delivery schedules and potential cost pressures, (3) working capital dynamics that impact cash flow, and (4) exit velocity of capital allocation (dividends and share repurchases) against free cash flow generation. Given the current CFO weakness and leverage, the achievability of any implied improvement relies on stabilization of working capital and sustenance of defense program throughput.