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General Dynamics delivered solid Q2 2025 results, driven by sustained demand across its diversified segments and robust cash generation. Revenue reached $13.041 billion, up 11.7% year-over-year and 6.7% quarter-over-quarter, supported by a favorable mix of programs and ongoing Navy and defense modernization initiatives. Gross profit of $1.949 billion yielded a gross margin of 14.9%, while operating income of $1.305 billion produced an operating margin near 10.0%. Net income was $1.014 billion with earnings per share (GAAP) of $3.78 and diluted EPS of $3.74, reflecting a year-over-year EPS increase of ~11.5%. Free cash flow stood at $1.40 billion, with cash flow from operations of $1.60 billion and capital expenditures of $198 million, underscoring the company’s disciplined capital allocation.
Key Performance Indicators
13.04B
QoQ: 6.69% | YoY: 11.74%
1.95B
14.95% margin
QoQ: 2.96% | YoY: 7.32%
1.31B
QoQ: 2.92% | YoY: 10.50%
1.01B
QoQ: 2.01% | YoY: 9.03%
3.78
QoQ: 2.44% | YoY: 11.50%
Revenue: $13.041B (+11.74% YoY; +6.69% QoQ). Gross Profit: $1.949B; Gross Margin: 14.95% (+7.32% YoY; +2.96% QoQ). Operating Income: $1.305B; Operating Margin: 10.00% (+10.50% YoY; +2.92% QoQ). Net Income: $1.014B; Net Margin: 7.78% (+9.03% YoY; +2.01% QoQ). EPS (GAAP): $3.78; EPS (Diluted): $3.74; YoY EPS: +11.50%; QoQ EPS: +2.44%. Free Cash Flow: $1.40B; CFO: $1.60B; Capex: $198M; Dividends Paid: $402M; Payout Ratio: 39.6%.
Metric
Value
YoY Change
QoQ Change
Revenue
13.04B
11.74%
6.69%
Gross Profit
1.95B
7.32%
2.96%
Operating Income
1.31B
10.50%
2.92%
Net Income
1.01B
9.03%
2.01%
EPS
3.78
11.50%
2.44%
Key Financial Ratios
14.90%
Gross profit margin is below industry norms, profitability concerns
10.00%
Operating margin is moderate, room for improvement in cost management
7.78%
Net profit margin is moderate, room for improvement in cost management
1.78%
Return on assets suggests inefficient capital allocation
4.30%
Return on equity suggests inefficient capital allocation
1.36
Current ratio meets minimum requirements but limited cushion
0.45
Debt-to-equity indicates balanced capital structure with manageable debt
19.28x
P/E ratio in line with market averages
3.32x
Trading at premium to book value, reflects strong intangibles or growth
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