General Dynamics Reports Fourth-Quarter and Full-Year 2024 Financial Results
General Dynamics (GD) reported strong financial results for Q4 and full-year 2024. Fourth-quarter net earnings reached $1.1 billion (up 14.2% YoY) with revenue of $13.3 billion (up 14.3% YoY), resulting in diluted EPS of $4.15. Full-year performance showed net earnings of $3.8 billion (up 14.1%) on revenue of $47.7 billion (up 12.9%), with diluted EPS of $13.63.
The company demonstrated strong operational performance with Q4 operating cash flow of $2.2 billion (188% of net earnings). Gulfstream delivered 47 aircraft in Q4, including 42 large-cabin aircraft, totaling 136 deliveries for the year. The company maintained robust order activity with a 1-to-1 book-to-bill ratio for the year, ending 2024 with a substantial backlog of $90.6 billion and total estimated contract value of $144 billion (up 9.1% YoY).
General Dynamics (GD) ha riportato risultati finanziari solidi per il quarto trimestre e per l'intero anno 2024. Gli utili netti del quarto trimestre hanno raggiunto 1,1 miliardi di dollari (in aumento del 14,2% rispetto all'anno precedente) con un fatturato di 13,3 miliardi di dollari (in aumento del 14,3% rispetto all'anno precedente), comportando un utile per azione (EPS) diluito di $4,15. Le performance dell'intero anno hanno mostrato utili netti di 3,8 miliardi di dollari (in aumento del 14,1%) su un fatturato di 47,7 miliardi di dollari (in aumento del 12,9%), con un EPS diluito di $13,63.
L'azienda ha dimostrato una solida performance operativa con un flusso di cassa operativo del Q4 di 2,2 miliardi di dollari (188% degli utili netti). Gulfstream ha consegnato 47 aeromobili nel quarto trimestre, tra cui 42 aeromobili a grande cabina, per un totale di 136 consegne per l'anno. L'azienda ha mantenuto un'attività di ordini robusta con un rapporto book-to-bill di 1 a 1 per l'anno, chiudendo il 2024 con un notevole portafoglio ordini di 90,6 miliardi di dollari e un valore totale stimato dei contratti di 144 miliardi di dollari (in aumento del 9,1% rispetto all'anno precedente).
General Dynamics (GD) reportó resultados financieros sólidos para el cuarto trimestre y para todo el año 2024. Las ganancias netas del cuarto trimestre alcanzaron 1,1 mil millones de dólares (un aumento del 14,2% interanual) con ingresos de 13,3 mil millones de dólares (un aumento del 14,3% interanual), resultando en un EPS diluido de $4,15. El rendimiento del año completo mostró ganancias netas de 3,8 mil millones de dólares (un aumento del 14,1%) sobre ingresos de 47,7 mil millones de dólares (un aumento del 12,9%), con un EPS diluido de $13,63.
La empresa demostró un sólido rendimiento operativo con un flujo de efectivo operativo del cuarto trimestre de 2,2 mil millones de dólares (188% de las ganancias netas). Gulfstream entregó 47 aeronaves en el cuarto trimestre, incluyendo 42 aeronaves de gran cabina, totalizando 136 entregas en el año. La empresa mantuvo una robusta actividad de pedidos con una relación de book-to-bill de 1 a 1 para el año, finalizando 2024 con un considerable backlog de 90,6 mil millones de dólares y un valor total estimado del contrato de 144 mil millones de dólares (un aumento del 9,1% interanual).
제너럴 다이나믹스 (GD)는 2024년 4분기 및 연간 강력한 재무 실적을 보고했습니다. 4분기 순이익은 11억 달러에 달하며(전년 대비 14.2% 증가) 매출은 133억 달러로(전년 대비 14.3% 증가) 희석 주당순이익(EPS)은 $4.15를 기록했습니다. 연간 실적은 순이익 38억 달러(14.1% 증가)를 매출 477억 달러(12.9% 증가)으로 기록하며, 희석 EPS는 $13.63이었습니다.
회사는 4분기 운영 현금 흐름이 22억 달러(순이익의 188%)로 강력한 운영 성과를 보여주었습니다. 걸프스트림은 4분기에 47대의 항공기를 인도했으며, 이 중 42대는 대형 기체로 연간 총 136대의 인도를 기록했습니다. 회사는 연간 1:1의 주문 대 매출 비율로 견고한 주문 활동을 유지하며, 2024년에는 906억 달러의 많은 미결 주문 잔고와 1440억 달러(전년 대비 9.1% 증가)의 총 계약 가치를 유지했습니다.
General Dynamics (GD) a annoncé des résultats financiers solides pour le quatrième trimestre et pour l'ensemble de l'année 2024. Les bénéfices nets du quatrième trimestre ont atteint 1,1 milliard de dollars (en hausse de 14,2 % par rapport à l'année précédente) avec un chiffre d'affaires de 13,3 milliards de dollars (en hausse de 14,3 % par rapport à l'année précédente), résultant en un BPA dilué de 4,15 $. La performance annuelle a montré des bénéfices nets de 3,8 milliards de dollars (en hausse de 14,1 %) sur un chiffre d'affaires de 47,7 milliards de dollars (en hausse de 12,9 %), avec un BPA dilué de 13,63 $.
L'entreprise a démontré une forte performance opérationnelle avec un flux de trésorerie d'exploitation de 2,2 milliards de dollars au quatrième trimestre (188 % des bénéfices nets). Gulfstream a livré 47 aéronefs au quatrième trimestre, dont 42 avions à grande cabine, portant le total des livraisons à 136 pour l'année. L'entreprise a maintenu une activité de commandes robuste avec un ratio de commandes à facturation de 1 à 1 pour l'année, terminant 2024 avec un carnet de commandes important de 90,6 milliards de dollars et une valeur totale estimée des contrats de 144 milliards de dollars (en hausse de 9,1 % par rapport à l'année précédente).
General Dynamics (GD) berichtete über starke finanzielle Ergebnisse für das vierte Quartal und das gesamte Jahr 2024. Im vierten Quartal erreichten die Nettogewinne 1,1 Milliarden Dollar (14,2% mehr als im Vorjahr) bei einem Umsatz von 13,3 Milliarden Dollar (14,3% mehr als im Vorjahr), was zu einem verwässerten EPS von 4,15 $ führte. Die Gesamtjahresleistung zeigte Nettogewinne von 3,8 Milliarden Dollar (14,1% mehr) bei einem Umsatz von 47,7 Milliarden Dollar (12,9% mehr), mit einem verwässerten EPS von 13,63 $.
Das Unternehmen demonstrierte starke betriebliche Leistungen mit einem operativen Cashflow im 4. Quartal von 2,2 Milliarden Dollar (188% der Nettogewinne). Gulfstream lieferte im 4. Quartal 47 Flugzeuge aus, darunter 42 große Kabinenflugzeuge, insgesamt 136 Auslieferungen im Jahr. Das Unternehmen hielt eine robuste Bestellaktivität mit einem Verhältnis von Aufträgen zu Rechnungen von 1 zu 1 für das Jahr aufrecht und schloss 2024 mit einem erheblichen Auftragsbestand von 90,6 Milliarden Dollar und einem insgesamt geschätzten Vertragswert von 144 Milliarden Dollar (9,1% mehr als im Vorjahr).
- Q4 net earnings increased 14.2% YoY to $1.1 billion
- Full-year revenue grew 12.9% to $47.7 billion
- Strong Q4 operating cash flow at $2.2 billion (188% of net earnings)
- Robust backlog of $90.6 billion with total contract value of $144 billion
- Secured multiple major defense contracts worth billions
- Maintained 1-to-1 book-to-bill ratio for the year
- Q4 book-to-bill ratio declined to 0.9-to-1
Insights
General Dynamics' Q4 and full-year 2024 results demonstrate exceptional operational execution and strategic positioning in both defense and aerospace markets. The 14.2% year-over-year growth in quarterly earnings to
The company's cash generation prowess is particularly noteworthy, with Q4 operating cash flow at
The defense segment's contract wins are strategically significant:
- The
$5.6 billion Air Force MPE contract positions GD at the forefront of military IT modernization - The
$2.2 billion MUOS contract strengthens their space communications footprint - Multiple Navy contracts totaling
$1.9 billion reinforce their submarine manufacturing dominance
In aerospace, the delivery of 47 aircraft (42 large-cabin) in Q4 and 136 for the full year (118 large-cabin) reflects strong execution despite supply chain challenges. The 1-to-1 book-to-bill ratio in aerospace, combined with a
The total backlog of
- Fourth-quarter net earnings of
$1.1 billion $4.15 $13.3 billion - Full-year net earnings of
$3.8 billion $13.63 $47.7 billion $2.2 billion 188% of net earnings- Ended the year with
$90.6 billion
For the full year, net earnings were
"We had a solid fourth quarter, capping off a year that saw steady growth in revenue and earnings across all four segments," said Phebe N. Novakovic, chairman and chief executive officer. "Order activity continued to be very strong, with 1-to-1 book-to-bill for the year, even as revenue grew by
Gulfstream delivered 47 aircraft in the quarter, of which 42 were large-cabin aircraft. The company delivered a total of 136 aircraft during the year, of which 118 were large-cabin aircraft.
Cash
Net cash provided by operating activities in the quarter totaled
During the year, the company invested
Backlog
Orders remained strong across the company with a consolidated book-to-bill ratio, defined as orders divided by revenue, of 0.9-to-1 for the quarter and 1-to-1 for the year. The company ended the year with backlog of
In the Aerospace segment, orders in the quarter totaled
In the three defense segments, significant awards in the quarter include a
About General Dynamics
Headquartered in
WEBCAST INFORMATION: General Dynamics will webcast its fourth-quarter and full-year 2024 financial results conference call today at 9 a.m. EST. The webcast will be a listen-only audio event available at GD.com. An on-demand replay of the webcast will be available by telephone two hours after the end of the call through February 5 at 800-770-2030 (international +1 647-362-9199), conference ID 4299949. Charts furnished to investors and securities analysts in connection with the announcement of financial results are available at GD.com. General Dynamics intends to supplement those charts on its website after its earnings call today to include information about 2025 guidance presented during the call.
This press release contains forward-looking statements (FLS), including statements about the company's future operational and financial performance, which are based on management's expectations, estimates, projections and assumptions. Words such as "expects," "anticipates," "plans," "believes," "forecasts," "scheduled," "outlook," "estimates," "should" and variations of these words and similar expressions are intended to identify FLS. In making FLS, we rely on assumptions and analyses based on our experience and perception of historical trends; current conditions and expected future developments; and other factors, estimates and judgments we consider reasonable and appropriate based on information available to us at the time. FLS are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. FLS are not guarantees of future performance and involve factors, risks and uncertainties that are difficult to predict. Actual future results and trends may differ materially from what is forecast in the FLS. All FLS speak only as of the date they were made. We do not undertake any obligation to update or publicly release revisions to FLS to reflect events, circumstances or changes in expectations after the date of this press release. Additional information regarding these factors is contained in the company's filings with the SEC, and these factors may be revised or supplemented in future SEC filings. In addition, this press release contains some financial measures not prepared in accordance with
EXHIBIT A
CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED) DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS | |||||||||||||
Three Months Ended December 31 | Variance | ||||||||||||
2024 | 2023 | $ | % | ||||||||||
Revenue | $ 13,338 | $ 11,668 | $ 1,670 | 14.3 % | |||||||||
Operating costs and expenses | (11,915) | (10,380) | (1,535) | ||||||||||
Operating earnings | 1,423 | 1,288 | 135 | 10.5 % | |||||||||
Other, net | 21 | 17 | 4 | ||||||||||
Interest, net | (76) | (78) | 2 | ||||||||||
Earnings before income tax | 1,368 | 1,227 | 141 | 11.5 % | |||||||||
Provision for income tax, net | (220) | (222) | 2 | ||||||||||
Net earnings | $ 1,148 | $ 1,005 | $ 143 | 14.2 % | |||||||||
Earnings per share—basic | $ 4.20 | $ 3.68 | $ 0.52 | 14.1 % | |||||||||
Basic weighted average shares outstanding | 273.4 | 272.8 | |||||||||||
Earnings per share—diluted | $ 4.15 | $ 3.64 | $ 0.51 | 14.0 % | |||||||||
Diluted weighted average shares outstanding | 276.9 | 275.9 | |||||||||||
EXHIBIT B
CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED) DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS | |||||||||||||
Year Ended December 31 | Variance | ||||||||||||
2024 | 2023 | $ | % | ||||||||||
Revenue | $ 47,716 | $ 42,272 | $ 5,444 | 12.9 % | |||||||||
Operating costs and expenses | (42,920) | (38,027) | (4,893) | ||||||||||
Operating earnings | 4,796 | 4,245 | 551 | 13.0 % | |||||||||
Other, net | 68 | 82 | (14) | ||||||||||
Interest, net | (324) | (343) | 19 | ||||||||||
Earnings before income tax | 4,540 | 3,984 | 556 | 14.0 % | |||||||||
Provision for income tax, net | (758) | (669) | (89) | ||||||||||
Net earnings | $ 3,782 | $ 3,315 | $ 467 | 14.1 % | |||||||||
Earnings per share—basic | $ 13.81 | $ 12.14 | $ 1.67 | 13.8 % | |||||||||
Basic weighted average shares outstanding | 273.9 | 273.1 | |||||||||||
Earnings per share—diluted | $ 13.63 | $ 12.02 | $ 1.61 | 13.4 % | |||||||||
Diluted weighted average shares outstanding | 277.5 | 275.7 | |||||||||||
EXHIBIT C
REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED) DOLLARS IN MILLIONS | |||||||||||||||
Three Months Ended December 31 | Variance | ||||||||||||||
2024 | 2023 | $ | % | ||||||||||||
Revenue: | |||||||||||||||
Aerospace | $ 3,743 | $ 2,744 | $ 999 | 36.4 % | |||||||||||
Marine Systems | 3,960 | 3,408 | 552 | 16.2 % | |||||||||||
Combat Systems | 2,395 | 2,364 | 31 | 1.3 % | |||||||||||
Technologies | 3,240 | 3,152 | 88 | 2.8 % | |||||||||||
Total | $ 13,338 | $ 11,668 | $ 1,670 | 14.3 % | |||||||||||
Operating earnings: | |||||||||||||||
Aerospace | $ 585 | $ 449 | $ 136 | 30.3 % | |||||||||||
Marine Systems | 200 | 217 | (17) | (7.8) % | |||||||||||
Combat Systems | 356 | 351 | 5 | 1.4 % | |||||||||||
Technologies | 319 | 305 | 14 | 4.6 % | |||||||||||
Corporate | (37) | (34) | (3) | (8.8) % | |||||||||||
Total | $ 1,423 | $ 1,288 | $ 135 | 10.5 % | |||||||||||
Operating margin: | |||||||||||||||
Aerospace | 15.6 % | 16.4 % | |||||||||||||
Marine Systems | 5.1 % | 6.4 % | |||||||||||||
Combat Systems | 14.9 % | 14.8 % | |||||||||||||
Technologies | 9.8 % | 9.7 % | |||||||||||||
Total | 10.7 % | 11.0 % | |||||||||||||
EXHIBIT D
REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED) DOLLARS IN MILLIONS | ||||||||||||||||
Year Ended December 31 | Variance | |||||||||||||||
2024 | 2023 | $ | % | |||||||||||||
Revenue: | ||||||||||||||||
Aerospace | $ 11,249 | $ 8,621 | $ 2,628 | 30.5 % | ||||||||||||
Marine Systems | 14,343 | 12,461 | 1,882 | 15.1 % | ||||||||||||
Combat Systems | 8,997 | 8,268 | 729 | 8.8 % | ||||||||||||
Technologies | 13,127 | 12,922 | 205 | 1.6 % | ||||||||||||
Total | $ 47,716 | $ 42,272 | $ 5,444 | 12.9 % | ||||||||||||
Operating earnings: | ||||||||||||||||
Aerospace | $ 1,464 | $ 1,182 | $ 282 | 23.9 % | ||||||||||||
Marine Systems | 935 | 874 | 61 | 7.0 % | ||||||||||||
Combat Systems | 1,276 | 1,147 | 129 | 11.2 % | ||||||||||||
Technologies | 1,260 | 1,202 | 58 | 4.8 % | ||||||||||||
Corporate | (139) | (160) | 21 | 13.1 % | ||||||||||||
Total | $ 4,796 | $ 4,245 | $ 551 | 13.0 % | ||||||||||||
Operating margin: | ||||||||||||||||
Aerospace | 13.0 % | 13.7 % | ||||||||||||||
Marine Systems | 6.5 % | 7.0 % | ||||||||||||||
Combat Systems | 14.2 % | 13.9 % | ||||||||||||||
Technologies | 9.6 % | 9.3 % | ||||||||||||||
Total | 10.1 % | 10.0 % | ||||||||||||||
EXHIBIT E
CONSOLIDATED BALANCE SHEET DOLLARS IN MILLIONS | |||||||||||||
(Unaudited) | |||||||||||||
December 31, 2024 | December 31, 2023 | ||||||||||||
ASSETS | |||||||||||||
Current assets: | |||||||||||||
Cash and equivalents | $ 1,697 | $ 1,913 | |||||||||||
Accounts receivable | 2,977 | 3,004 | |||||||||||
Unbilled receivables | 8,248 | 7,997 | |||||||||||
Inventories | 9,724 | 8,578 | |||||||||||
Other current assets | 1,740 | 2,123 | |||||||||||
Total current assets | 24,386 | 23,615 | |||||||||||
Noncurrent assets: | |||||||||||||
Property, plant and equipment, net | 6,467 | 6,198 | |||||||||||
Intangible assets, net | 1,520 | 1,656 | |||||||||||
Goodwill | 20,556 | 20,586 | |||||||||||
Other assets | 2,951 | 2,755 | |||||||||||
Total noncurrent assets | 31,494 | 31,195 | |||||||||||
Total assets | $ 55,880 | $ 54,810 | |||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||
Current liabilities: | |||||||||||||
Short-term debt and current portion of long-term debt | $ 1,502 | $ 507 | |||||||||||
Accounts payable | 3,344 | 3,095 | |||||||||||
Customer advances and deposits | 9,491 | 9,564 | |||||||||||
Other current liabilities | 3,487 | 3,266 | |||||||||||
Total current liabilities | 17,824 | 16,432 | |||||||||||
Noncurrent liabilities: | |||||||||||||
Long-term debt | 7,260 | 8,754 | |||||||||||
Other liabilities | 8,733 | 8,325 | |||||||||||
Total noncurrent liabilities | 15,993 | 17,079 | |||||||||||
Shareholders' equity: | |||||||||||||
Common stock | 482 | 482 | |||||||||||
Surplus | 4,062 | 3,760 | |||||||||||
Retained earnings | 41,487 | 39,270 | |||||||||||
Treasury stock | (22,450) | (21,054) | |||||||||||
Accumulated other comprehensive loss | (1,518) | (1,159) | |||||||||||
Total shareholders' equity | 22,063 | 21,299 | |||||||||||
Total liabilities and shareholders' equity | $ 55,880 | $ 54,810 | |||||||||||
EXHIBIT F
CONSOLIDATED STATEMENT OF CASH FLOWS - (UNAUDITED) DOLLARS IN MILLIONS | ||||
Year Ended December 31 | ||||
2024 | 2023 | |||
Cash flows from operating activities—continuing operations: | ||||
Net earnings | $ 3,782 | $ 3,315 | ||
Adjustments to reconcile net earnings to net cash from operating activities: | ||||
Depreciation of property, plant and equipment | 644 | 608 | ||
Amortization of intangible and finance lease right-of-use assets | 242 | 255 | ||
Equity-based compensation expense | 183 | 181 | ||
Deferred income tax benefit | (86) | (177) | ||
(Increase) decrease in assets, net of effects of business acquisitions: | ||||
Accounts receivable | 16 | 38 | ||
Unbilled receivables | (261) | 913 | ||
Inventories | (1,195) | (2,219) | ||
Increase (decrease) in liabilities, net of effects of business acquisitions: | ||||
Accounts payable | 247 | (303) | ||
Customer advances and deposits | 343 | 2,415 | ||
Income taxes payable | 266 | (209) | ||
Other, net | (69) | (107) | ||
Net cash provided by operating activities | 4,112 | 4,710 | ||
Cash flows from investing activities: | ||||
Capital expenditures | (916) | (904) | ||
Other, net | (37) | (37) | ||
Net cash used by investing activities | (953) | (941) | ||
Cash flows from financing activities: | ||||
Dividends paid | (1,529) | (1,428) | ||
Purchases of common stock | (1,501) | (434) | ||
Repayment of fixed-rate notes | (500) | (1,250) | ||
Other, net | 161 | 18 | ||
Net cash used by financing activities | (3,369) | (3,094) | ||
Net cash used by discontinued operations | (6) | (4) | ||
Net (decrease) increase in cash and equivalents | (216) | 671 | ||
Cash and equivalents at beginning of year | 1,913 | 1,242 | ||
Cash and equivalents at end of year | $ 1,697 | $ 1,913 | ||
EXHIBIT G
ADDITIONAL FINANCIAL INFORMATION - (UNAUDITED) DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS | ||||||||
Other Financial Information: | ||||||||
December 31, 2024 | December 31, 2023 | |||||||
Debt-to-equity (a) | 39.7 % | 43.5 % | ||||||
Book value per share (b) | $ 81.61 | $ 77.85 | ||||||
Shares outstanding | 270,340,502 | 273,599,948 | ||||||
Fourth Quarter | Twelve Months | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Income tax payments, net | $ 435 | $ 607 | $ 560 | $ 1,100 | ||||
Company-sponsored research and development (c) | $ 144 | $ 115 | $ 565 | $ 510 | ||||
Return on sales (d) | 8.6 % | 8.6 % | 7.9 % | 7.8 % | ||||
Return on equity (e) | 17.2 % | 16.8 % | ||||||
Non-GAAP Financial Measures: | ||||||||
Fourth Quarter | Twelve Months | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Free cash flow: | ||||||||
Net cash provided by operating activities | $ 2,160 | $ 1,196 | $ 4,112 | $ 4,710 | ||||
Capital expenditures | (355) | (304) | (916) | (904) | ||||
Free cash flow (f) | $ 1,805 | $ 892 | $ 3,196 | $ 3,806 | ||||
Return on invested capital: | ||||||||
Net earnings | $ 3,782 | $ 3,315 | ||||||
After-tax interest expense | 310 | 315 | ||||||
After-tax amortization expense | 191 | 201 | ||||||
Net operating profit after taxes | 4,283 | 3,831 | ||||||
Average invested capital | 32,451 | 31,258 | ||||||
Return on invested capital (g) | 13.2 % | 12.3 % | ||||||
December 31, 2024 | December 31, 2023 | |||||||
Net debt: | ||||||||
Total debt | $ 8,762 | $ 9,261 | ||||||
Less cash and equivalents | 1,697 | 1,913 | ||||||
Net debt (h) | $ 7,065 | $ 7,348 | ||||||
Notes describing the calculation of the other financial information and a reconciliation of non-GAAP financial measures are on the following page. | ||||||||
EXHIBIT G (Cont.)
ADDITIONAL FINANCIAL INFORMATION - (UNAUDITED) DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS | |
(a) | Debt-to-equity ratio is calculated as total debt divided by total equity as of year end. |
(b) | Book value per share is calculated as total equity divided by total outstanding shares as of year end. |
(c) | Includes independent research and development and Aerospace product-development costs. |
(d) | Return on sales is calculated as net earnings divided by revenue. |
(e) | Return on equity is calculated by dividing net earnings by our average total equity during the year. Average total equity is calculated using the total equity balance at the end of the preceding year and the total equity balances at the end of each of the four quarters of the year presented. |
(f) | We define free cash flow as net cash from operating activities less capital expenditures. We believe free cash flow is a useful measure for investors because it portrays our ability to generate cash from our businesses for purposes such as repaying debt, funding business acquisitions, repurchasing our common stock and paying dividends. We use free cash flow to assess the quality of our earnings and as a key performance measure in evaluating management. |
(g) | We believe return on invested capital (ROIC) is a useful measure for investors because it reflects our ability to generate returns from the capital we have deployed in our operations. We use ROIC to evaluate investment decisions and as a performance measure in evaluating management. We define ROIC as net operating profit after taxes divided by average invested capital. Net operating profit after taxes is defined as net earnings plus after-tax interest and amortization expense, calculated using the statutory federal income tax rate. Average invested capital is defined as the sum of the average debt and average shareholders' equity excluding accumulated other comprehensive loss. Average debt and average shareholders' equity excluding accumulated other comprehensive loss are calculated using the respective balances at the end of the preceding year and the respective balances at the end of each of the four quarters of the year presented. ROIC excludes goodwill impairments and non-economic accounting changes as they are not reflective of company performance. |
(h) | We define net debt as short- and long-term debt (total debt) less cash and equivalents. We believe net debt is a useful measure for investors because it reflects the borrowings that support our operations and capital deployment strategy. We use net debt as an important indicator of liquidity and financial position. |
EXHIBIT H
BACKLOG - (UNAUDITED) DOLLARS IN MILLIONS | |||||||||||||
Funded | Unfunded | Total Backlog | Estimated Potential Contract Value* | Total Estimated Contract Value | |||||||||
Fourth Quarter 2024: | |||||||||||||
Aerospace | $ 18,895 | $ 798 | $ 19,693 | $ 1,132 | $ 20,825 | ||||||||
Marine Systems | 30,530 | 9,288 | 39,818 | 9,560 | 49,378 | ||||||||
Combat Systems | 16,142 | 838 | 16,980 | 8,647 | 25,627 | ||||||||
Technologies | 9,577 | 4,529 | 14,106 | 34,029 | 48,135 | ||||||||
Total | $ 75,144 | $ 15,453 | $ 90,597 | $ 53,368 | $ 143,965 | ||||||||
Third Quarter 2024: | |||||||||||||
Aerospace | $ 18,859 | $ 937 | $ 19,796 | $ 254 | $ 20,050 | ||||||||
Marine Systems | 29,008 | 11,463 | 40,471 | 9,578 | 50,049 | ||||||||
Combat Systems | 17,289 | 682 | 17,971 | 8,016 | 25,987 | ||||||||
Technologies | 9,794 | 4,602 | 14,396 | 27,093 | 41,489 | ||||||||
Total | $ 74,950 | $ 17,684 | $ 92,634 | $ 44,941 | $ 137,575 | ||||||||
Fourth Quarter 2023: | |||||||||||||
Aerospace | $ 19,557 | $ 897 | $ 20,454 | $ 451 | $ 20,905 | ||||||||
Marine Systems | 30,141 | 15,755 | 45,896 | 3,647 | 49,543 | ||||||||
Combat Systems | 13,816 | 721 | 14,537 | 6,236 | 20,773 | ||||||||
Technologies | 8,961 | 3,779 | 12,740 | 28,011 | 40,751 | ||||||||
Total | $ 72,475 | $ 21,152 | $ 93,627 | $ 38,345 | $ 131,972 | ||||||||
* The estimated potential contract value includes work awarded on unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options associated with existing firm contracts, including options and other agreements with existing customers to purchase new aircraft and aircraft services. We recognize options in backlog when the customer exercises the option and establishes a firm order. For IDIQ contracts, we evaluate the amount of funding we expect to receive and include this amount in our estimated potential contract value. The actual amount of funding received in the future may be higher or lower than our estimate of potential contract value. | |||||||||||||
EXHIBIT H-1
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EXHIBIT H-2
BACKLOG BY SEGMENT - (UNAUDITED) |
EXHIBIT I
|
We received the following significant contract awards during the fourth quarter of 2024:
Marine Systems:
$880 U.S. Navy for long-lead materials for Block V Virginia-class submarines.$375 $350 $245 $230 $80
Combat Systems:
$505 $820 $370 U.S. Army for the production of 155mm artillery projectile metal parts.$65 $50
Technologies:
$50 U.S. Air Force to modernize, integrate and operate the Department of Defense's Mission Partner Environments (MPEs), enabling the military and its partners to securely communicate and share real-time information at multiple levels of classification. The contract has a maximum potential value of$5.6 billion - A contract from the
U.S. Space Force to provide sustainment services for the Mobile User Objective System (MUOS) satellite communications system. The contract has a maximum potential value of$2.2 billion $305 $1.4 billion $140 $810 $280 New York State Department of Health to operate and modernize the state's health insurance exchange and to support and enhance the state's Medicaid Management Information System. These contracts including options have a maximum potential value of$480 $115 $345 - A contract from the VA to provide information technology (IT) support services to more than 600,000 VA personnel at all VA locations nationwide. The contract including options has a maximum potential value of
$230 $155
EXHIBIT J
AEROSPACE SUPPLEMENTAL DATA - (UNAUDITED) DOLLARS IN MILLIONS | ||||||||
Fourth Quarter | Twelve Months | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Gulfstream Aircraft Deliveries (units): | ||||||||
Large-cabin aircraft | 42 | 32 | 118 | 89 | ||||
Mid-cabin aircraft | 5 | 7 | 18 | 22 | ||||
Total | 47 | 39 | 136 | 111 | ||||
Aerospace Book-to-Bill: | ||||||||
Orders* | $ 3,814 | $ 3,164 | $ 11,278 | $ 10,283 | ||||
Revenue | 3,743 | 2,744 | 11,249 | 8,621 | ||||
Book-to-Bill Ratio | 1.0x | 1.2x | 1.0x | 1.2x | ||||
* Does not include customer defaults, liquidated damages, cancellations, foreign exchange fluctuations and other backlog adjustments. | ||||||||
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SOURCE General Dynamics
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