General Dynamics (GD) Q4 2024 earnings summary

Executive summary

• Full-year 2024 revenue reached $47.7 billion, up 12.9% year-over-year, with net earnings of $3.78 billion (up 14.1%) and diluted EPS of $13.63 (up 13.4%), reflecting strong growth across all four segments.

• Q4 2024 revenue was $13.34 billion, with net earnings of $1.15 billion and EPS of $4.15, both up over 14% year-over-year.

• All business segments posted revenue and operating earnings growth, led by Aerospace with 30.5% revenue growth and 23.9% operating earnings growth.

• Ended 2024 with a $90.6 billion backlog and a 1-to-1 book-to-bill ratio, with record estimated contract value of $144 billion, up 9% year-over-year.

• Returned $3 billion in cash to shareholders via dividends and share repurchases.

Financial highlights

• Q4 revenue increased 14.3% year-over-year; operating earnings up 10.5%, net earnings up 14.2%, and EPS up 14%.

• Full-year free cash flow was $3.2 billion, with a cash conversion rate of 85% of net earnings.

• Net cash from operating activities was $4.1 billion for the year (109% of net earnings); Q4 cash from operations was $2.16 billion (188% of net earnings).

• Operating margin for 2024 was 10.1%, up 10 bps year-over-year.

• Debt-to-equity ratio improved to 39.7% from 43.5% year-over-year.

Outlook and guidance

• 2025 company-wide revenue expected at $50.3 billion, up 5.5%, with margin of 10.3% and EPS forecast around $14.80.

• Aerospace revenue projected at $12.65 billion, with 13.7% operating margin and 18.5% earnings growth; 150 Gulfstream deliveries planned.

• Combat Systems revenue to rise to $9.1 billion, with 14.5% margin and 3.5%-4% earnings growth.

• Marine revenue expected at $15 billion, with 6.8% margin and 10%+ earnings growth.

• Technologies revenue forecast at $13.5 billion, with operating margin at 9.2%.