General Dynamics Q4 Earnings: Beats Expectations, Strong Orders In Defense Segments And More

General Dynamics Corp GD reported better-than-expected fourth-quarter fiscal 2024 results.

Revenue for the quarter increased 14.3% year over year to $13.338 billion, beating the consensus of $12.77 billion. EPS was $4.15 (up 14% YoY), above the consensus of $4.10.

Gulfstream delivered 47 aircraft in the quarter, including 42 large-cabin models. Over the year, the company delivered 136 aircraft, with 118 being large-cabin models.

Operating earnings rose 10.5% year over year to $1.423 billion, and the margin contracted 37 basis points year over year to 10.7%.

Revenue by segments: Aerospace $3.743 billion (+36.4% Y/Y), Marine Systems $3.96 billion (+16.2% Y/Y), Combat Systems $2.395 billion (+1.3% Y/Y), and Technologies $3.24 billion (+2.8% Y/Y).

Related: General Dynamics Gears Up For Q4 Earnings: Aerospace, Combat Systems Segments On Watch

GD's operating cash flow for the quarter reached $2.2 billion, representing 188% of net earnings. It totaled $4.1 billion for the year, equating to 109% of net earnings.

The company invested $916 million in capital expenditures, paid $560 million in taxes, repaid $500 million in notes, and returned $3 billion to shareholders, ending 2024 with $1.7 billion in cash.

Orders remained strong, with a book-to-bill ratio of 0.9-to-1 for the quarter and 1-to-1 for the year. The company ended 2024 with a $90.6 billion backlog and $144 billion in total estimated contract value, up 9.1% year-over-year.

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Aerospace segment orders reached $3.8 billion in the quarter, with a year-end backlog of $19.7 billion and a 1-to-1 book-to-bill ratio.

Major defense contracts included $5.6 billion for Air Force MPE modernization, $2.2 billion for Space Force MUOS sustainment, and $1.9 billion for Navy submarine support.

Outlook: In its conference call, the company said it expects a 2025 effective tax rate of 17.5%. The CEO said Gulfstream deliveries will be around 150 aircraft in 2025.

The company expects Combat Systems segment revenue of $9.1 billion, Aerospace Segment revenue of $12.65 billion and Marine Systems Segment Revenue of about $15 billion.

Also, the company expects 2025 total revenue of $50.3 billion and company-wide EPS to be around $14.80.

Price Action: GD shares are trading lower by 1.41% at $258.88 at the last check Wednesday.

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