General Dynamics Reports Strong Q3 and Nine-Month Financial Results with Revenue and Net Earnings Growth

General Dynamics Corporation reported strong financial performance for the third quarter and the first nine months of 2024, with significant increases in revenue and net earnings compared to the same periods in 2023. For the three months ended September 29, 2024, the company generated revenue of $11,671 million, up from $10,571 million in the prior year. For the nine months ended September 29, 2024, revenue reached $34,378 million, compared to $30,604 million in the same period of 2023.

The revenue breakdown for Q3 2024 showed products revenue at $6,767 million and services revenue at $4,904 million. Operating earnings for the third quarter increased to $1,181 million from $1,057 million in Q3 2023, while earnings before income tax rose to $1,114 million from $991 million. Net earnings for Q3 2024 were $930 million, an increase from $836 million in the previous year, resulting in basic earnings per share of $3.39, up from $3.07.

For the nine-month period, net earnings were $2,634 million, compared to $2,310 million in 2023, with basic earnings per share increasing to $9.61 from $8.45. The company’s comprehensive income for Q3 2024 was $1,265 million, significantly higher than $833 million in Q3 2023.

General Dynamics' total backlog as of September 29, 2024, was $92.6 billion, reflecting a robust demand environment, particularly in defense segments. The company expects to recognize approximately 55% of this backlog as revenue by the end of 2025. The defense segments, which account for about 70% of revenue from U.S. government contracts, reported strong performance driven by increased demand due to geopolitical tensions.

Segment performance highlighted growth across various divisions. The Aerospace segment reported revenue of $2,482 million in Q3 2024, while Marine Systems generated $3,599 million. Combat Systems and Technologies contributed $2,212 million and $3,378 million, respectively. The Marine Systems segment saw increased revenue from U.S. Navy ship construction, while the Combat Systems segment benefited from heightened demand for military vehicles and munitions.

The company also faced challenges, including supply chain disruptions and inflationary pressures, particularly affecting the Aerospace segment's production ramp-up. Despite these challenges, General Dynamics maintained a strong cash position, with cash and equivalents totaling $2,101 million as of September 29, 2024, up from $1,913 million at the end of 2023.

In terms of strategic developments, General Dynamics repurchased 0.7 million shares for $183 million in the nine months ended September 29, 2024, and declared a quarterly dividend of $1.42 per share, marking the 27th consecutive annual increase. The company continues to navigate a complex environment shaped by geopolitical factors and ongoing government audits, but it remains optimistic about its growth trajectory.