General Dynamics 8-K
PositiveEarnings
Virginia- and Columbia-class submarine awards drive $98.8B in orders and lift backlog to $220.3B.
Filed 2026-10-30 08:09 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results showed growth across all four segments, with exceptionally large Marine Systems orders for Virginia- and Columbia-class submarines driving strong bookings.
Key Figures
| Metric | Q3 2026 | 9M 2026 |
|---|---|---|
| Revenue | $14.6B, +12.9% Y/Y | $42.1B, +10.4% Y/Y |
| Operating earnings | $1.53B, +14.7% Y/Y | $4.41B, +12.9% Y/Y |
| Operating margin | 10.5%, vs 10.3% | 10.5%, vs 10.2% |
| Net earnings | $1.23B, +16.1% Y/Y | $3.51B, +14.6% Y/Y |
| Diluted EPS | $4.49, +15.7% Y/Y | $12.83, +13.6% Y/Y |
| Cash provided by operating activities | $1.71B, -18.9% Y/Y | $5.75B, +61.4% Y/Y |
| Free cash flow (non-GAAP) | $1.23B, -35.2% Y/Y | $4.83B, +60.5% Y/Y |
- Segment revenue grew across the board: Marine Systems +21.1% Y/Y to $4.96B, Aerospace +9.3% to $3.54B, Combat Systems +6.0% to $2.39B, and Technologies +10.8% to $3.68B. Marine Systems operating earnings rose 34.4% to $391M and Aerospace operating earnings rose 19.3% to $513M; Combat Systems operating earnings fell 1.5% to $330M.
- Orders totaled $98.8B, including $93.8B in the defense segments, driven by large Marine Systems submarine orders. Company-wide book-to-bill was 6.8-to-1; backlog reached $220.3B, including $146.9B in Marine Systems. Estimated potential contract value was $50.3B, bringing total estimated contract value to $270.7B.
- Q3 operating cash flow was 139% of net earnings. The company paid $429M in dividends, invested $481M in capital expenditures and reduced total debt by $500M; quarter-end cash was $4.39B and total debt was $7.02B. For 9M, customer advances and deposits increased cash flow by $1.23B. The company repurchased $604M of stock during 9M, while diluted weighted-average shares were 273.8M vs 271.8M a year earlier.
Guidance
No guidance in this filing.
Investor Takeaways
- Watch Marine Systems revenue and book-to-bill as the company converts its $146.9B segment backlog; continued growth would show whether submarine awards are translating into reported results.
- Track cash generation alongside earnings: Q3 operating cash flow and free cash flow declined Y/Y despite operating earnings growth, so subsequent cash conversion will indicate whether the quarter’s cash flow softness persists.
The summary is written by an AI model reading the filing.
Model 005 · prompt v111 · 2026-10-30 14:37:51Z