General Dynamics ( NYSE : GD ) announced on Friday that its operating profit for the third quarter of 2026 was $1.5 billion, with an earnings per share after dilution ( EPS ) of $4.49, and revenue of $14.6 billion.
Compared with the same period last year, revenue increased by 12.9%, operating profit increased by 14.7%, and earnings per share after dilution increased by 15.7%. The operating margin was 10.5%, which is 20 basis points higher than the same period last year.
General Dynamics Chairman and CEO Phebe Novakovic stated: "Our business achieved outstanding results in the third quarter, with revenue growth in all four of our business segments, strong orders, and stable operational performance. As backlogged orders continue to increase, along with our large-scale investments in the business over the past decade, we are poised to continue driving performance growth in the coming years."
Cash and Capital Allocation
Cash generated from operating activities this quarter amounted to $1.7 billion, which is equivalent to 139% of net profit. During the quarter, the company paid out $429 million in dividends, invested $481 million in capital expenditures, and reduced its total debt by $500 million. At the end of the quarter, the company's total debt was $7 billion, and cash and equivalents were $4.4 billion.
Orders and Backlogged Orders
This quarter, the defense business segment received orders worth $93.8 billion, mainly from large orders for Virginia-class and Columbia-class submarines in the marine systems segment; the aerospace segment received orders worth $5 billion, with a total order value of $98.8 billion.
Calculated by dividing orders by revenue, the book-to-bill ratio for the defense business segment this quarter is 8.5 to 1, for the aerospace segment it is 1.4 to 1, and for the company as a whole it is 6.8 to 1.
As of the end of the quarter, there were backlogs of orders amounting to $220.3 billion. Management estimates the potential contract value at $50.4 billion, which includes unfunded contracts with unlimited delivery and quantity (IDIQ), as well as additional value from unexercised options. The total estimated contract value, including backlogged orders and potential contracts, is $270.7 billion.
About General Dynamics
General Dynamics, headquartered in Reston, Virginia, is a global aerospace and defense company whose business covers commercial aviation, shipbuilding and maintenance, land combat vehicles, weapon systems and ammunition, as well as technical products and services. The company employs over 120,000 people worldwide and had revenues of $52.6 billion in 2025. For more information, please visit www.gd.com.
General Dynamics' financial report conference call will be held on October 30, 2026, at 9:00 a.m. Eastern Time. The live broadcast link will be posted at www.gd.com, and a replay will be available after the conference call. Relevant presentation slides will be available for download before the conference call.
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