General Dynamics 2Q revenues inch up by 4%YoY

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by Fayaz Hussain

July 23, 2025

General Dynamics, which manufactures the Gulfstream business jets, announced financial results for the first quarter of 2025 wherein it reported a modest revenue growth of 4.1% year-on-year to $3.1bn compared to $3bn in the same period last year.

“During the first half of the year, each of our four segments achieved growth in revenue and earnings, with margins on a companywide basis expanding 50 basis points over the same period last year,” said Phebe Novakovic, chairman and chief executive officer. “Our strong cash flow and healthy backlog position us well to have a good second half.”

The company delivered 38 Gulfstream aircraft during the quarter, one more than the same quarter of last year. Of these 38 deliveries, 32 were large-cabin aircraft whereas the remaining six were mid-cabin.

On a sequential basis, the deliveries were two less than the first quarter with the decline coming in the large-cabin aircraft while mid-cabin staying flat at six.

While the growth in topline was muted, the company did manage to expand operating margins to 13.2% of the revenue as operating profit grew by 26.3%YoY to $403m from $319m in the same period of last year.

On the other hand, the company’s book-to-bill ratio stood at 1.3x owing to sharp increase of 50% in orders which hit $4bn from $2.7bn in the same quarter of last year.

On a cumulative basis, General Dynamics’ six-month revenue growth from the aerospace segment clocked in at 21.2%YoY to $6.1bn – supported by the significant revenue expansion in the first quarter of 2025.

This translated to better operating margins as well which expanded 230 basis points to 13.7%. In absolute terms, the operating earnings rose 45.5% to $835m compared to $574m.