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General Dynamics Reports Strong Financial Performance for 2024

General Dynamics (NYSE: GD) has released its financial results for the fourth quarter and the entire year of 2024, highlighting impressive growth in both net earnings and revenue. The company, headquartered in Reston, Virginia, achieved quarterly net earnings of $1.1 billion, a notable 14.2% increase compared to the same period last year. The revenue for the quarter also rose to $13.3 billion, marking a 14.3% increase from the previous year.

Financial Highlights

For the full year 2024, General Dynamics reported net earnings of $3.8 billion, reflecting a 14.1% increase year-over-year, and an annual revenue of $47.7 billion, up 12.9% from 2023. The diluted earnings per share (EPS) for the fourth quarter was $4.15, up 14%, while the full-year diluted EPS reached $13.63, an increase of 13.4%.

CEO Phebe N. Novakovic commented, "We had a solid fourth quarter, capping off a year that saw steady growth in revenue and earnings across all four segments. Order activity continued to be very strong, with a book-to-bill ratio of 1-to-1 for the year, positioning us well for continued growth ahead."

Segmented Performance

During the fourth quarter, the Aerospace segment played a vital role in General Dynamics' performance, with orders totaling $3.8 billion. The sector delivered 47 aircraft, consisting primarily of 42 large-cabin aircraft. For the entire year, the company delivered 136 aircraft, 118 of which were in the large-cabin category.

Cash Flow and Capital Spending

The net cash provided by operating activities for the fourth quarter was substantial, totaling $2.2 billion, representing an impressive 188% of net earnings. Throughout 2024, General Dynamics generated $4.1 billion in net cash from operating activities, or 109% of net earnings. The company also invested $916 million in capital expenditures during the year, paid $560 million in taxes, and returned $3 billion to shareholders through dividends and share repurchases.

Year-End Financial Standing

Ending 2024, General Dynamics reported a robust backlog of $90.6 billion, which includes both funded and unfunded contracts. This backlog is a key indicator of future revenue and highlights the company's strong position in the market. Furthermore, the total estimated contract value reached $144 billion, reflecting a 9.1% increase from the previous year. The company is optimistic about 2025, anticipating continued demand in both the defense and aerospace markets.

Major Contracts

Significant awards in the fourth quarter included:

• - A $5.6 billion U.S. Air Force contract for upgrading and operating the Department of Defense's Mission Partner Environments.
• - A $2.2 billion contract from the U.S. Space Force for sustainment services of the Mobile User Objective System.
• - Several contracts from the U.S. Navy totaling $1.9 billion to support Virginia-class submarines.

Conclusion

General Dynamics' strong financial performance for both the fourth quarter and full-year 2024 underscores the company's robust growth trajectory and its strategic significance in the aerospace and defense sectors. With a solid financial standing, substantial backlog, and continued demand for its products and services, General Dynamics is well-positioned for future success. The firm will webcast its quarterly conference call today, providing further insights into its financial results and outlook for the coming year. This growth reflects the company’s ongoing commitment to innovation and excellence in the defense and aviation industries, further solidifying its role as a leader in global security and aerospace markets.