General Dynamics Corporation (GD) Bundle
A Brief History of General Dynamics Corporation
General Dynamics Corporation, a prominent player in the aerospace and defense sectors, has experienced significant growth and transformation over its history, particularly leading into 2024. As of September 29, 2024, General Dynamics reported robust financial performance, underscoring its market position and operational efficiency.
Financial Performance Overview
For the nine months ended September 29, 2024, General Dynamics achieved:
- Total Revenue: $34.378 billion, an increase from $30.604 billion in the same period of 2023.
- Net Earnings: $2.634 billion, compared to $2.310 billion in 2023.
- Earnings per Share (EPS): Basic EPS of $9.61 and diluted EPS of $9.49.
Operating earnings for the same period rose to $3.373 billion from $2.957 billion year-over-year, reflecting an operating margin of 9.8%.
Segment Performance
General Dynamics operates through four main segments: Aerospace, Marine Systems, Combat Systems, and Technologies. The revenue breakdown for these segments for the nine months ended September 29, 2024, is as follows:
| Segment | Revenue (in billions) | Operating Earnings (in millions) |
|---|---|---|
| Aerospace | $7.506 | $879 |
| Marine Systems | $10.383 | $735 |
| Combat Systems | $6.602 | $920 |
| Technologies | $9.887 | $941 |
| Total | $34.378 | $3,373 |
Backlog and Estimated Contract Value
As of September 29, 2024, General Dynamics reported a total backlog of $92.634 billion, which includes both funded and unfunded portions. The estimated potential contract value is $137.575 billion, reflecting the company's strong pipeline of future work.
Cash Flow and Capital Management
General Dynamics emphasized its cash flow generation, reporting:
- Net Cash Provided by Operating Activities: $1.952 billion for the nine months ended September 29, 2024.
- Capital Expenditures: $561 million during the same period.
- Free Cash Flow: $1.391 billion, highlighting the company's ability to generate cash after capital expenditures.
The company declared a quarterly dividend of $1.42 per share in March 2024, marking the 27th consecutive annual increase in dividends, with total cash dividends paid amounting to $1.1 billion.
Market Position and Strategic Outlook
General Dynamics continues to maintain a strong market position, driven by increased defense spending and demand for advanced military technologies. The company anticipates significant growth in revenue across its segments, particularly in Aerospace and Technologies, as it capitalizes on rising global defense budgets and technological advancements.
Conclusion
The financial data and operational performance of General Dynamics Corporation in 2024 reflect a robust and strategically positioned entity in the aerospace and defense sector, poised for continued growth and shareholder value enhancement.
A Who Owns General Dynamics Corporation (GD)
Major Shareholders
As of 2024, the ownership structure of General Dynamics Corporation (GD) is characterized by a mix of institutional and retail investors. The following table outlines the major shareholders:
| Shareholder Type | Percentage of Ownership | Number of Shares Owned (Approx.) |
|---|---|---|
| Institutional Investors | 85.5% | 197.8 million |
| Retail Investors | 14.5% | 33.4 million |
| Top Institutional Holder (Vanguard Group) | 8.4% | 19.5 million |
| Top Institutional Holder (BlackRock, Inc.) | 7.2% | 16.6 million |
| Top Institutional Holder (State Street Corporation) | 4.9% | 11.4 million |
Insider Ownership
The insider ownership of General Dynamics Corporation as of 2024 is approximately 0.8%, which translates to about 1.8 million shares. This includes shares held by executives and board members.
Stock Performance and Market Trends
General Dynamics Corporation's stock is traded on the New York Stock Exchange under the ticker symbol GD. As of September 29, 2024, the stock price was approximately $190 per share, reflecting a year-to-date increase of about 12%.
Market Capitalization
The market capitalization of General Dynamics Corporation as of September 29, 2024, is approximately $52 billion, indicating a stable position in the defense and aerospace industry.
Recent Financial Performance
In the third quarter of 2024, General Dynamics reported total revenue of $11.67 billion, which is an increase of 10.4% compared to the previous year. The company's operating margin for the quarter was 10.1%.
Revenue Breakdown by Segment
The revenue generated by General Dynamics Corporation in the third quarter of 2024 is detailed in the table below:
| Segment | Revenue (in billion USD) | Operating Margin (%) |
|---|---|---|
| Aerospace | 2.48 | 12.3 |
| Marine Systems | 3.60 | 7.2 |
| Combat Systems | 2.21 | 14.7 |
| Technologies | 3.38 | 9.7 |
Backlog and Contract Values
As of September 29, 2024, General Dynamics had a total backlog of $92.6 billion, indicating strong demand for its products and services. The breakdown of the backlog is as follows:
| Segment | Funded Backlog (in billion USD) | Estimated Potential Contract Value (in billion USD) |
|---|---|---|
| Aerospace | 18.86 | 20.05 |
| Marine Systems | 29.01 | 50.05 |
| Combat Systems | 17.29 | 25.99 |
| Technologies | 9.79 | 41.49 |
Dividend Information
General Dynamics has consistently paid dividends. As of March 6, 2024, the quarterly dividend was increased to $1.42 per share, marking the 27th consecutive annual increase.
General Dynamics Corporation (GD) Mission Statement
Mission Statement Overview
General Dynamics Corporation (GD) focuses on providing innovative solutions and services that meet the needs of its customers in the defense, aerospace, and technology sectors. The company's mission is to deliver superior products and services while maintaining a commitment to excellence, integrity, and sustainability. As of 2024, GD emphasizes its role in supporting national security and enhancing the quality of life through advanced technologies.
Financial Performance
In the first nine months of 2024, General Dynamics reported a revenue of $34.378 billion, representing a 12.3% increase compared to $30.604 billion in the same period of 2023. Operating earnings for the same period were $3.373 billion, up from $2.957 billion in 2023, marking a 14.1% growth.
Revenue Breakdown by Segment
| Segment | Revenue (9M 2024) | Revenue (9M 2023) | Variance |
|---|---|---|---|
| Aerospace | $7.506 billion | $5.877 billion | $1.629 billion (27.7%) |
| Marine Systems | $10.383 billion | $9.053 billion | $1.330 billion (14.7%) |
| Combat Systems | $6.602 billion | $5.904 billion | $698 million (11.8%) |
| Technologies | $9.887 billion | $9.770 billion | $117 million (1.2%) |
Backlog and Estimated Potential Contract Value
As of September 29, 2024, General Dynamics reported a total backlog of $92.634 billion, an increase from $91.301 billion at the end of the second quarter of 2024. The estimated potential contract value was $137.575 billion.
| Segment | Funded Backlog | Unfunded Backlog | Total Backlog | Estimated Potential Contract Value |
|---|---|---|---|---|
| Aerospace | $18.859 billion | $937 million | $19.796 billion | $254 million |
| Marine Systems | $29.008 billion | $11.463 billion | $40.471 billion | $9.578 billion |
| Combat Systems | $17.289 billion | $682 million | $17.971 billion | $8.016 billion |
| Technologies | $9.794 billion | $4.602 billion | $14.396 billion | $27.093 billion |
Key Performance Indicators
The effective tax rate for the first nine months of 2024 was 17.0%, compared to 16.2% in the prior year. Net earnings for the first nine months of 2024 were $2.634 billion, up from $2.310 billion in 2023.
Dividend and Shareholder Returns
General Dynamics declared a quarterly dividend of $1.42 per share in March 2024, marking the 27th consecutive annual increase. In the first nine months of 2024, cash dividends paid totaled $1.1 billion.
Future Outlook
For 2024, General Dynamics expects total revenue from the Aerospace segment to be approximately $12.3 billion with an operating margin of 13.2%. The Marine Systems segment anticipates revenue of $13.9 billion with an operating margin of 6.9%. The Combat Systems segment forecasts revenue of $8.7 billion with an operating margin of 14.4%. Lastly, the Technologies segment expects revenue of $13 billion with an operating margin of 9.5%.
How General Dynamics Corporation (GD) Works
Overview of Operations
General Dynamics Corporation (GD) operates through four primary segments: Aerospace, Marine Systems, Combat Systems, and Technologies. Each segment focuses on different aspects of defense and aerospace manufacturing and services, contributing significantly to the company's overall revenue.
Aerospace Segment
The Aerospace segment focuses on the manufacturing of business jets and related services. In the third quarter of 2024, the segment reported:
- Revenue: $2.482 billion
- Operating Earnings: $305 million
- Operating Margin: 12.3%
For the first nine months of 2024, the Aerospace segment achieved:
- Revenue: $7.506 billion
- Operating Earnings: $879 million
- Operating Margin: 11.7%
Gulfstream aircraft deliveries totaled 89 units in the first nine months of 2024, up from 72 units in the same period of 2023.
Marine Systems Segment
The Marine Systems segment specializes in shipbuilding and related services. For the third quarter of 2024, the performance was:
- Revenue: $3.599 billion
- Operating Earnings: $258 million
- Operating Margin: 7.2%
Year-to-date figures for the Marine Systems segment include:
- Revenue: $10.383 billion
- Operating Earnings: $735 million
- Operating Margin: 7.1%
Key revenue drivers included U.S. Navy ship construction and engineering services.
Combat Systems Segment
The Combat Systems segment focuses on armored vehicles and weapons systems. In the third quarter of 2024, it recorded:
- Revenue: $2.212 billion
- Operating Earnings: $325 million
- Operating Margin: 14.7%
For the nine-month period ending in September 2024, the results were:
- Revenue: $6.602 billion
- Operating Earnings: $920 million
- Operating Margin: 13.9%
Revenue growth was primarily driven by demand for military vehicles and artillery.
Technologies Segment
The Technologies segment encompasses IT services and defense technology solutions. In Q3 2024, the segment achieved:
- Revenue: $3.378 billion
- Operating Earnings: $326 million
- Operating Margin: 9.7%
For the first nine months of 2024, the results included:
- Revenue: $9.887 billion
- Operating Earnings: $941 million
- Operating Margin: 9.5%
Growth in this segment was attributed to increased volume in IT services.
Financial Performance Overview
General Dynamics reported consolidated revenue for the third quarter of 2024 as follows:
- Revenue: $11.671 billion
- Operating Earnings: $1.181 billion
- Operating Margin: 10.1%
For the nine months ending September 29, 2024, the consolidated figures were:
- Revenue: $34.378 billion
- Operating Earnings: $3.373 billion
- Operating Margin: 9.8%
The company’s total backlog, which includes funded and unfunded portions, stood at $92.634 billion at the end of Q3 2024.
Segment Revenue Breakdown
| Segment | Q3 Revenue (2024) | Year-to-Date Revenue (2024) | Operating Earnings (Q3 2024) | Operating Margin (Q3 2024) |
|---|---|---|---|---|
| Aerospace | $2.482 billion | $7.506 billion | $305 million | 12.3% |
| Marine Systems | $3.599 billion | $10.383 billion | $258 million | 7.2% |
| Combat Systems | $2.212 billion | $6.602 billion | $325 million | 14.7% |
| Technologies | $3.378 billion | $9.887 billion | $326 million | 9.7% |
Cash Flow and Capital Management
General Dynamics reported cash flow from operating activities of $1.952 billion for the first nine months of 2024. Cash used in investing activities was $588 million, while cash used in financing activities was $1.173 billion.
Outlook for 2024
For 2024, General Dynamics expects the following segment revenues:
- Aerospace: Approximately $12.3 billion
- Marine Systems: Approximately $13.9 billion
- Combat Systems: Approximately $8.7 billion
- Technologies: Approximately $13 billion
The company's total estimated contract value was $137.575 billion as of September 29, 2024.
How General Dynamics Corporation (GD) Makes Money
Overview of Revenue Streams
General Dynamics Corporation (GD) generates revenue through several key segments, including Aerospace, Marine Systems, Combat Systems, and Technologies. As of 2024, the company's total revenue for the first nine months reached $34.378 billion, representing a 12.3% increase from $30.604 billion in the same period of 2023.
| Segment | Q3 2024 Revenue (in millions) | 9M 2024 Revenue (in millions) | Operating Margin (%) |
|---|---|---|---|
| Aerospace | $2,482 | $7,506 | 11.7% |
| Marine Systems | $3,599 | $10,383 | 7.1% |
| Combat Systems | $2,212 | $6,602 | 13.9% |
| Technologies | $3,378 | $9,887 | 9.5% |
| Total | $11,671 | $34,378 | 9.8% |
Aerospace Segment
The Aerospace segment is a significant contributor to GD's revenue, with $7.506 billion generated in the first nine months of 2024, up 27.7% from 2023. This growth is attributed to aircraft manufacturing and services, with Gulfstream aircraft deliveries totaling 89 units, a 23.6% increase from the previous year.
Marine Systems Segment
Marine Systems generated $10.383 billion in revenue for the first nine months of 2024, a 14.7% increase year-over-year. Key drivers include ship construction and engineering services for the U.S. Navy, particularly related to the Columbia-class submarine program.
Combat Systems Segment
The Combat Systems segment reported $6.602 billion in revenue for the first nine months of 2024, an 11.8% increase. The segment's performance was bolstered by higher demand for military vehicles and weapons systems, particularly the U.S. Army's M10 Booker combat vehicle.
Technologies Segment
GD's Technologies segment generated $9.887 billion in revenue for the first nine months of 2024, representing a modest 1.2% increase. The growth in this segment was primarily driven by an increase in IT services and C5ISR solutions.
Financial Performance Metrics
For the first nine months of 2024, GD reported the following financial metrics:
| Metric | Value |
|---|---|
| Operating Costs | $31,005 million |
| Operating Earnings | $3,373 million |
| Net Earnings | $2,634 million |
| Earnings Per Share (Diluted) | $9.49 |
| Effective Tax Rate | 17.0% |
Backlog and Contract Insights
As of September 29, 2024, GD's total backlog was $92.6 billion, which includes both funded and unfunded contracts. The estimated potential contract value was approximately $137.6 billion.
| Segment | Funded Backlog (in millions) | Unfunded Backlog (in millions) | Total Backlog (in millions) |
|---|---|---|---|
| Aerospace | $18,859 | $937 | $19,796 |
| Marine Systems | $29,008 | $11,463 | $40,471 |
| Combat Systems | $17,289 | $682 | $17,971 |
| Technologies | $9,794 | $4,602 | $14,396 |
| Total | $74,950 | $17,684 | $92,634 |
Market Dynamics and Future Outlook
GD expects to maintain growth across its segments, with projected revenue for 2024 estimated at approximately $12.3 billion for Aerospace, $13.9 billion for Marine Systems, $8.7 billion for Combat Systems, and $13 billion for Technologies.
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Article updated on 8 Nov 2024
Resources:
- General Dynamics Corporation (GD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of General Dynamics Corporation (GD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View General Dynamics Corporation (GD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.