General Dynamics Delivers Mixed Q3 Performance, Aerospace And Marine Systems Lead Revenue Gains

General Dynamics Corp GD reported mixed third-quarter fiscal 2024 results. Revenue for the quarter increased 10.4% year over year to $11.671 billion, beating the consensus of $11.641 billion.

EPS was $3.35 (up 10.2% YoY), below the consensus of $3.53.

Gulfstream delivered 28 aircraft in the quarter, including 24 large-cabin models, compared to 27 deliveries last year.

Operating earnings rose 11.7% Y/Y to $1.181 billion, and the margin expanded 12 basis points YoY to 10.1%.

"The company continues to see strong growth and steady improvement in operating performance Demand across the portfolio also remains strong in the current environment," commented Phebe Novakovic, chairman and chief executive officer.  

Revenue by segments: Aerospace $2.482 billion (+221% Y/Y), Marine Systems $3.599 billion (+19.9% Y/Y), Combat Systems $2.212 billion (-0.5% Y/Y), and Technologies $3.378 billion (+2% Y/Y).

GD's net cash provided by operating activities for the nine months ended September 29, 2024, stood at $1.952 billion.

Net cash provided by operating activities in the quarter was $1.4 billion, or 152% of net earnings.

GD paid $390 million in dividends, invested $201 million in capital expenditures, and repurchased $44 million in shares, ending with $2.1 billion in cash.

The consolidated book-to-bill ratio for the quarter was 1.1-to-1. The company-wide backlog stood at $92.6 billion, with an estimated potential contract value of $45 billion. The total estimated contract value was $137.6 billion.

In the Aerospace segment, orders in the quarter totaled $2.4 billion, growing backlog to $19.8 billion (up 2.8% Y/Y). Defense segments, orders totaled $10.5 billion, with particular strength in Combat Systems.

Price Action:

GD shares are trading higher by 0.003% at $306 premarket at the last check Wednesday.

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