General Dynamics Reports Strong Q4 2025 Earnings and Growth Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 10h ago
0mins
Source: seekingalpha
- Strong Financial Performance: General Dynamics reported Q4 earnings of $4.17 per share on revenues of $14.379 billion, with operating earnings of $1.452 billion and net earnings of $1.143 billion, reflecting robust growth across all financial metrics, particularly a 7.8% year-over-year revenue increase.
- Sustained Aerospace Demand: The Aerospace segment generated $3.788 billion in revenue, with a $104 million decrease in operating earnings primarily due to three fewer G600 deliveries; however, strong demand for the G700 and G800 models indicates ongoing market interest in high-end aircraft.
- Robust Order Activity: The company reported a strong order activity with a book-to-bill ratio of 1.5:1 for 2025 and a record backlog of $118 billion, a 30% increase from last year, establishing a solid foundation for future revenue growth.
- Optimistic 2026 Outlook: Management projected total revenue for 2026 to be between $54.3 billion and $54.8 billion, with an operating margin of approximately 10.4%, and raised EPS guidance to between $16.10 and $16.20, demonstrating confidence in future business prospects.
Analyst Views on GD
Wall Street analysts forecast GD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GD is 386.85 USD with a low forecast of 360.00 USD and a high forecast of 410.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
7 Buy
8 Hold
0 Sell
Moderate Buy
Current: 366.620
Low
360.00
Averages
386.85
High
410.00
Current: 366.620
Low
360.00
Averages
386.85
High
410.00
About GD
General Dynamics Corporation is a global aerospace and defense company. It offers a portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapons systems and munitions, and technology products and services. Its segments include Aerospace, Marine Systems, Combat Systems and Technologies. The Aerospace segment produces business jets and is the standard bearer in new technology aircraft, aircraft repair, customer support and custom completion services. The Marine Systems segment designs and builds nuclear-powered submarines and is engaged in surface combatant and auxiliary ship design and construction for the U.S. Navy. The Combat Systems segment manufactures land combat solutions worldwide, including wheeled and tracked combat vehicles, weapons systems and munitions. The Technologies segment provides a full spectrum of services, technologies and products to a range of military, intelligence, federal civilian and state customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
