Technical Officer

General Dynamics reports second-quarter 2026 financial results. * Revenue $14.1 billion, up 8.1% versus prior year * Diluted EPS $4.24, up 13.4% versus prior year * $1.9 billion cash from operating activities, 162% of net earnings * 1.4-to-1 book-to-bill, with strong order activity in all segments RESTON, Va. - General Dynamics (NYSE: GD) today reported second-quarter 2026 operating earnings of $1.5 billion, and $4.24 per diluted share (EPS), on revenue of $14.1 billion. Compared with the year-ago quarter, revenue increased 8.1%, operating earnings increased 11.9%, and diluted EPS increased 13.4%. Operating margin of 10.4% was a 40-basis-point expansion from the year-ago quarter. "Our businesses delivered solid results in the quarter, with revenue growth across all four segments - including double-digit increases in revenue and noteworthy margin expansion in Aerospace and Marine Systems - reflecting our ongoing efforts to increase the pace of execution and deliver on our backlog," said Phebe Novakovic, chairman and chief executive officer. "We are well positioned to support our customers' needs and are continuing to make significant investments to increase output to meet strong and growing demand." Cash and capital deployment. Net cash provided by operating activities in the quarter totaled $1.9 billion, or 162% of net earnings. During the quarter, the company paid $429 million in dividends, invested $234 million in capital expenditures, and reduced total debt by $498 million. The company ended the quarter with $7.5 billion in total debt and $4.3 billion in cash and equivalents on hand. Orders and backlog. Orders received in the quarter totaled $14.7 billion in the defense segments and $5.3 billion in the Aerospace segment, for a total of $20 billion. Book-to-bill ratio, defined as orders divided by revenue, was 1.4-to-1 for the quarter for the defense segments, 1.5-to-1 for the Aerospace segment, and 1.4-to-1 on a company-wide basis. Backlog at the end of the quarter was $136.5 billion. Estimated potential contract value, representing management's estimate of additional value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $50.4 billion. Total estimated contract value, the sum of backlog plus estimated potential contract value, was $186.9 billion. About General Dynamics Headquartered in Reston, Virginia, General Dynamics is a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapons systems and munitions; and technology products and services. General Dynamics employs more than 120,000 people worldwide and generated $52.6 billion in revenue in 2025. More information is available at www.gd.com. WEBCAST INFORMATION: General Dynamics' financial results conference call will be held on Wednesday, July 29, 2026, at 9:00 a.m. EDT. A link to the live webcast will be available at www.gd.com and will be available for replay following the call. Corresponding presentation slides will be available for download prior to the call. This press release may contain 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, General Dynamics Corporation rely on assumptions and analyses based on its experience and perception of historical trends; current conditions and expected future developments; and other factors, estimates and judgments General Dynamics Corporation consider reasonable and appropriate based on information available to General Dynamics Corporation 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. General Dynamics Corporation 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 may contain some financial measures not prepared in accordance with U.S. generally accepted accounting principles (GAAP). While General Dynamics Corporation believe these non-GAAP metrics provide useful information for investors, there are limitations associated with their use, and its calculations of these metrics may not be comparable to similarly titled measures of other companies. Non-GAAP metrics should not be considered in isolation from, or as a substitute for, GAAP measures. Reconciliations to comparable GAAP measures and other information relating to its non-GAAP measures are included in other filings with the SEC, which are available at investorrelations.gd.com.

General Dynamics is set to report second-quarter earnings this Wednesday before market open. The aerospace and defence company beat revenue expectations last quarter with $13.48 billion in sales, up 10.3% year on year. For Q2, analysts expect revenue to grow 3.9% year on year, slower than the 8.9% increase recorded in the same quarter last year. Analysts have generally reconfirmed their estimates over the past 30 days. Peers RTX and Lockheed Martin have already reported strong Q2 results, with revenue growth of 14.5% and 10.5% respectively, both beating estimates. Their shares rose 9.2% and 13.3% following their announcements. General Dynamics shares are up 11.9% over the past month, trading at $389.59 against an average analyst price target of $395.74.

President Donald Trump called out General Dynamics at the Pennsylvania Defense and Innovation Summit, praising the company's submarines whilst urging faster production. He highlighted the company's $2.5 billion investment in submarine construction but emphasised the need for improved delivery pace. The comments come after General Dynamics reported strong first-quarter results, with earnings of $4.10 per share on revenue of $13.5 billion, up over 10% year-over-year. The company's Marine Systems division saw earnings rise 26.4%, driven by work on Columbia and Virginia class submarine programmes. General Dynamics secured more than $26 billion in new business during the quarter, pushing total backlog to $131 billion, a 48% year-over-year increase. The company raised its full-year earnings guidance to $16.50 per share.