Second-quarter results topped Wall Street estimates as Gulfstream jet demand and naval shipbuilding lifted sales, backlog and cash flow across the defense contractor’s businesses.
General Dynamics reported stronger second-quarter results, with adjusted earnings of $4.24 per share and revenue of $14.1 billion both topping Wall Street expectations. Sales rose 8.1% from a year earlier, supported by growth across all four business segments, with Aerospace and Marine Systems leading the gains. The company said backlog climbed to $136.5 billion from $103.7 billion a year earlier, helped by about $20 billion of new bookings and a 1.4-to-1 book-to-bill ratio. Aerospace revenue increased 15.1% to $3.5 billion, while Marine Systems revenue rose 10.4% to $4.7 billion. Operating margin improved to 10.4%, operating earnings rose 11.9% to $1.5 billion, and operating cash flow totaled $1.9 billion. Shares edged up 0.7% in early trading after the July 29 release.