0000040533false00000405332024-07-242024-07-24

8K - Logo.gif
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) July 24, 2024 (July 24, 2024)
Commission File Number 1-3671
GENERAL DYNAMICS CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
13-1673581
State or other jurisdiction of incorporation or organizationI.R.S. Employer Identification No.
11011 Sunset Hills RoadReston,Virginia20190
Address of principal executive officesZip code


(703) 876-3000
Registrant’s telephone number, including area code


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common StockGDNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o




Item 2.02    Results of Operations and Financial Condition

On July 24, 2024, General Dynamics announced its financial results for the quarter ended June 30, 2024. A copy of the press release is being furnished as Exhibit 99.1 to this Form 8-K and is hereby incorporated by reference.
Item 9.01    Financial Statements and Exhibits
(d)     Exhibits (furnished only)




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
GENERAL DYNAMICS CORPORATION
by/s/ William A. Moss
William A. Moss
Vice President and Controller
(Authorized Officer and Chief Accounting Officer)
Dated: July 24, 2024




Exhibit 99.1 
 
bluegdlogo.jpg
11011 Sunset Hills Road 
Reston, Virginia 20190News
www.gd.com 

Contact: Jeff A. Davis
Tel: 703 876 3483
press@generaldynamics.com


General Dynamics Reports Second-Quarter 2024 Financial Results

July 24, 2024

•Revenue of $12 billion, up 18% from year-ago quarter
•Operating earnings of $1.2 billion, up 20.2% from year-ago quarter
•Diluted EPS of $3.26, up 20.7% from year-ago quarter
•Operating margin of 9.7%, a 20-basis-point expansion from year-ago quarter


RESTON, Va. – General Dynamics (NYSE: GD) today reported second-quarter 2024 revenue of $12 billion, up 18% from the second quarter of 2023. Operating earnings of $1.2 billion were up 20.2% from the year-ago quarter. Diluted earnings per share (EPS) were $3.26, up 20.7% from the year-ago quarter. Operating margin for the quarter was 9.7%, a 20-basis point expansion from the year-ago quarter, with particular strength in the Technologies and Combat Systems segments.

“This was a strong quarter overall, as reflected by solid growth in all key measures from a year ago. Our businesses continue to focus on disciplined execution of their programs, cost and schedule,” said Phebe N. Novakovic, chairman and chief executive officer. “In the Aerospace segment, we are continuing to ramp up the pace of our G700 deliveries and our defense businesses continued to grow, reflecting increased demand in response to the threat environment.”

Gulfstream delivered 37 aircraft in the quarter, 31 of which were large-cabin aircraft. This compares with 24 aircraft delivered in the year-ago quarter, of which 18 were large-cabin.

Cash and Capital Deployment
Net cash provided by operating activities in the quarter was $814 million, or 90% of net earnings. During the quarter, the company paid $389 million in dividends, invested $201 million in capital expenditures, and used $34 million to repurchase shares, ending the quarter with $1.4 billion in cash and equivalents on hand.

Orders and Backlog
The consolidated book-to-bill ratio, defined as orders divided by revenue, was 0.8-to-1 for the quarter. Company-wide backlog was $91.3 billion. Estimated potential contract value, representing management’s estimate of additional value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $38.5 billion. Total estimated contract value, the sum of all backlog components, was $129.8 billion.


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In the Aerospace segment, orders in the quarter totaled $2.7 billion. Aerospace backlog of $20 billion is 2.8% above the year-ago quarter.

In the defense segments, orders in the quarter totaled $7.4 billion, with particular strength in Combat Systems, which had a book-to-bill ratio of 1.5-to-1. Significant awards in the defense segments included two contracts from the Canadian government, with options having combined maximum potential value of $1.9 billion shared with an industry partner, for the Logistics Vehicle Modernization (LVM) program; $205 million, with options having a maximum potential value of $1.1 billion, for planning yard services for the Arleigh Burke-class (DDG-51) guided-missile destroyer program; a $25 million contract from the U.S. Army, with maximum potential value of $535 million, for systems technical support of the Stryker vehicle fleet; $205 million, with options having a maximum potential value of $525 million, from the North Carolina Department of Health and Human Services to operate its Medicaid Management Information System; various munitions and ordnance contracts with maximum potential value totaling $460 million if all options are exercised; and several key contracts for classified customers with maximum potential value of $665 million. A detailed list of significant awards is provided in Exhibit I.

About General Dynamics
Headquartered in Reston, Virginia, General Dynamics is a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapons systems and munitions; and technology products and services. General Dynamics employs more than 100,000 people worldwide and generated $42.3 billion in revenue in 2023. More information is available at www.gd.com.

WEBCAST INFORMATION: General Dynamics will webcast its second-quarter 2024 financial results conference call at 9 a.m. EDT on Wednesday, July 24, 2024. The webcast will be a listen-only audio event available at www.gd.com. An on-demand replay of the webcast will be available by telephone two hours after the end of the call through July 31, 2024, at 800-770-2030 (international: +1 609-800-9909), conference ID 4299949. Charts furnished to investors and securities analysts in connection with General Dynamics’ announcement of its financial results are available at www.gd.com.

This press release contains forward-looking statements (FLS), including statements about the company’s future operational and financial performance, which are based on management’s expectations, estimates, projections and assumptions. Words such as “expects,” “anticipates,” “plans,” “believes,” “forecasts,” “scheduled,” “outlook,” “estimates,” “should” and variations of these words and similar expressions are intended to identify FLS. In making FLS, we rely on assumptions and analyses based on our experience and perception of historical trends; current conditions and expected future developments; and other factors, estimates and judgments we consider reasonable and appropriate based on information available to us at the time. FLS are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. FLS are not guarantees of future performance and involve factors, risks and uncertainties that are difficult to predict. Actual future results and trends may differ materially from what is forecast in the FLS. All FLS speak only as of the date they were made. We do not undertake any obligation to update or publicly release revisions to FLS to reflect events, circumstances or changes in expectations after the date of this press release. Additional information regarding these factors is contained in the company’s filings with the SEC, and these factors may be revised or supplemented in future SEC filings. In addition, this press release contains some financial measures not prepared in accordance with U.S. generally accepted accounting principles (GAAP). While we believe these non-GAAP metrics provide useful information for investors, there are limitations associated with their use, and our calculations of these metrics may not be comparable to similarly titled measures of other companies. Non-GAAP
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metrics should not be considered in isolation from, or as a substitute for, GAAP measures. Reconciliations to comparable GAAP measures and other information relating to our non-GAAP measures are included in other filings with the SEC, which are available at investorrelations.gd.com.
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EXHIBIT A
CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS

 
 Three Months EndedVariance
 June 30, 2024July 2, 2023$%
Revenue$11,976 $10,152 $1,824 18.0 %
Operating costs and expenses(10,820)(9,190)(1,630)
Operating earnings1,156 962 194 20.2 %
Other, net18 13 5 
Interest, net(84)(89)5 
Earnings before income tax1,090 886 204 23.0 %
Provision for income tax, net(185)(142)(43)
Net earnings$905 $744 $161 21.6 %
Earnings per share—basic$3.30 $2.72 $0.58 21.3 %
Basic weighted average shares outstanding274.1 273.1 
Earnings per share—diluted$3.26 $2.70 $0.56 20.7 %
Diluted weighted average shares outstanding277.7 275.1 





































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EXHIBIT B
CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS

 
 Six Months EndedVariance
 June 30, 2024July 2, 2023$%
Revenue$22,707 $20,033 $2,674 13.3 %
Operating costs and expenses(20,515)(18,133)(2,382)
Operating earnings2,192 1,900 292 15.4 %
Other, net32 46 (14)
Interest, net(166)(180)14 
Earnings before income tax2,058 1,766 292 16.5 %
Provision for income tax, net(354)(292)(62)
Net earnings$1,704 $1,474 $230 15.6 %
Earnings per share—basic$6.22 $5.39 $0.83 15.4 %
Basic weighted average shares outstanding273.8 273.6 
Earnings per share—diluted$6.14 $5.34 $0.80 15.0 %
Diluted weighted average shares outstanding277.4 275.8 
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EXHIBIT C
REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)
DOLLARS IN MILLIONS

 
 Three Months EndedVariance
 June 30, 2024July 2, 2023$%
Revenue:
Aerospace$2,940 $1,953 $987 50.5 %
Marine Systems3,453 3,059 394 12.9 %
Combat Systems2,288 1,924 364 18.9 %
Technologies3,295 3,216 79 2.5 %
Total$11,976 $10,152 $1,824 18.0 %
Operating earnings:
Aerospace$319 $236 $83 35.2 %
Marine Systems245 235 10 4.3 %
Combat Systems313 251 62 24.7 %
Technologies320 283 37 13.1 %
Corporate(41)(43)2 4.7 %
Total$1,156 $962 $194 20.2 %
Operating margin:
Aerospace10.9 %12.1 %
Marine Systems7.1 %7.7 %
Combat Systems13.7 %13.0 %
Technologies9.7 %8.8 %
Total9.7 %9.5 %






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EXHIBIT D
REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)
DOLLARS IN MILLIONS

 
 Six Months EndedVariance
 June 30, 2024July 2, 2023$%
Revenue:
Aerospace$5,024 $3,845 $1,179 30.7 %
Marine Systems6,784 6,051 733 12.1 %
Combat Systems4,390 3,680 710 19.3 %
Technologies6,509 6,457 52 0.8 %
Total$22,707 $20,033 $2,674 13.3 %
Operating earnings:
Aerospace$574 $465 $109 23.4 %
Marine Systems477 446 31 7.0 %
Combat Systems595 496 99 20.0 %
Technologies615 582 33 5.7 %
Corporate(69)(89)20 22.5 %
Total$2,192 $1,900 $292 15.4 %
Operating margin:
Aerospace11.4 %12.1 %
Marine Systems7.0 %7.4 %
Combat Systems13.6 %13.5 %
Technologies9.4 %9.0 %
Total9.7 %9.5 %



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EXHIBIT E
CONSOLIDATED BALANCE SHEET
DOLLARS IN MILLIONS
 
(Unaudited)
June 30, 2024December 31, 2023
ASSETS
Current assets:
Cash and equivalents$1,362 $1,913 
Accounts receivable3,152 3,004 
Unbilled receivables8,568 7,997 
Inventories9,686 8,578 
Other current assets1,544 2,123 
Total current assets24,312 23,615 
Noncurrent assets:
Property, plant and equipment, net6,276 6,198 
Intangible assets, net1,550 1,656 
Goodwill20,452 20,586 
Other assets2,852 2,755 
Total noncurrent assets 31,130 31,195 
Total assets$55,442 $54,810 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt$2,004 $507 
Accounts payable2,969 3,095 
Customer advances and deposits10,089 9,564 
Other current liabilities3,195 3,266 
Total current liabilities18,257 16,432 
Noncurrent liabilities:
Long-term debt7,257 8,754 
Other liabilities7,892 8,325 
Total noncurrent liabilities15,149 17,079 
Shareholders’ equity:
Common stock482 482 
Surplus3,925 3,760 
Retained earnings40,191 39,270 
Treasury stock(21,128)(21,054)
Accumulated other comprehensive loss(1,434)(1,159)
Total shareholders’ equity22,036 21,299 
Total liabilities and shareholders’ equity$55,442 $54,810 



 
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EXHIBIT F
CONSOLIDATED STATEMENT OF CASH FLOWS - (UNAUDITED)
DOLLARS IN MILLIONS
 

Six Months Ended
 June 30, 2024July 2, 2023
Cash flows from operating activities—continuing operations:
Net earnings$1,704 $1,474 
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation of property, plant and equipment311 297 
Amortization of intangible and finance lease right-of-use assets117 136 
Equity-based compensation expense87 87 
Deferred income tax benefit(90)(154)
(Increase) decrease in assets, net of effects of business acquisitions:
Accounts receivable(158)(159)
Unbilled receivables(601)513 
Inventories(1,152)(1,264)
Increase (decrease) in liabilities, net of effects of business acquisitions:
Accounts payable(125)(33)
Customer advances and deposits169 1,286 
Other, net274 10 
Net cash provided by operating activities536 2,193 
Cash flows from investing activities:
Capital expenditures(360)(373)
Other, net53 (31)
Net cash used by investing activities(307)(404)
Cash flows from financing activities:
Dividends paid(750)(705)
Purchases of common stock(139)(378)
Repayment of fixed-rate notes— (750)
Other, net111 (42)
Net cash used by financing activities(778)(1,875)
Net cash used by discontinued operations(2)(2)
Net decrease in cash and equivalents(551)(88)
Cash and equivalents at beginning of period1,913 1,242 
Cash and equivalents at end of period$1,362 $1,154 

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EXHIBIT G
ADDITIONAL FINANCIAL INFORMATION - (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
Other Financial Information:
 June 30, 2024December 31, 2023
Debt-to-equity (a)42.0 %43.5 %
Book value per share (b)$80.20 $77.85 
Shares outstanding274,777,579 273,599,948 
Second QuarterSix Months
2024202320242023
Income tax refunds (payments), net$81 $(269)$48 $(327)
Company-sponsored research and development (c)$147 $145 $284 $255 
Return on sales (d)7.6 %7.3 %7.5 %7.4 %
Non-GAAP Financial Measures:
Second QuarterSix Months
2024202320242023
Free cash flow:
Net cash provided by operating activities$814 $731 $536 $2,193 
Capital expenditures(201)(212)(360)(373)
Free cash flow (e)$613 $519 $176 $1,820 
 June 30, 2024December 31, 2023
Net debt:
Total debt$9,261 $9,261 
Less cash and equivalents1,362 1,913 
Net debt (f)
$7,899 $7,348 
(a)Debt-to-equity ratio is calculated as total debt divided by total equity as of the end of the period.

(b)Book value per share is calculated as total equity divided by total outstanding shares as of the end of the period.

(c)Includes independent research and development and Aerospace product-development costs.

(d)Return on sales is calculated as net earnings divided by revenue.

(e)We define free cash flow as net cash from operating activities less capital expenditures. We believe free cash flow is a useful measure for investors because it portrays our ability to generate cash from our businesses for purposes such as repaying debt, funding business acquisitions, repurchasing our common stock and paying dividends. We use free cash flow to assess the quality of our earnings and as a key performance measure in evaluating management.

(f)We define net debt as short- and long-term debt (total debt) less cash and equivalents. We believe net debt is a useful measure for investors because it reflects the borrowings that support our operations and capital deployment strategy. We use net debt as an important indicator of liquidity and financial position.

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EXHIBIT H
BACKLOG - (UNAUDITED)
DOLLARS IN MILLIONS
 
FundedUnfundedTotal
Backlog
Estimated
Potential
Contract Value*
Total
Estimated
Contract Value
Second Quarter 2024:
Aerospace$19,126 $911 $20,037 $372 $20,409 
Marine Systems29,912 11,436 41,348 3,983 45,331 
Combat Systems16,003 673 16,676 5,816 22,492 
Technologies9,365 3,875 13,240 28,283 41,523 
Total$74,406 $16,895 $91,301 $38,454 $129,755 
First Quarter 2024:
Aerospace$19,564 $981 $20,545 $305 $20,850 
Marine Systems29,711 14,415 44,126 3,749 47,875 
Combat Systems14,923 686 15,609 7,002 22,611 
Technologies8,976 4,478 13,454 29,206 42,660 
Total$73,174 $20,560 $93,734 $40,262 $133,996 
Second Quarter 2023:
Aerospace$19,050 $447 $19,497 $888 $20,385 
Marine Systems30,318 13,410 43,728 3,238 46,966 
Combat Systems14,349 718 15,067 6,196 21,263 
Technologies9,732 3,333 13,065 27,639 40,704 
Total$73,449 $17,908 $91,357 $37,961 $129,318 

*The estimated potential contract value includes work awarded on unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options associated with existing firm contracts, including options and other agreements with existing customers to purchase new aircraft and aircraft services. We recognize options in backlog when the customer exercises the option and establishes a firm order. For IDIQ contracts, we evaluate the amount of funding we expect to receive and include this amount in our estimated potential contract value. The actual amount of funding received in the future may be higher or lower than our estimate of potential contract value.






 



 





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EXHIBIT H-1
BACKLOG - (UNAUDITED)
DOLLARS IN MILLIONS




chart-7d681d36720b42de8a1.jpg
Funded BacklogUnfunded Backlog










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EXHIBIT H-2
BACKLOG BY SEGMENT - (UNAUDITED)
DOLLARS IN MILLIONS

chart-2f64a016d5d34b6ca8e.jpgchart-2ee9ee5fd0854f02bf9.jpg
chart-63a5de0b93d74057b48.jpgchart-68fc6cb4a3e44be787a.jpg
Funded BacklogUnfunded Backlog


















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EXHIBIT I
SECOND QUARTER 2024 SIGNIFICANT ORDERS - (UNAUDITED)
DOLLARS IN MILLIONS

We received the following significant contract awards during the second quarter of 2024:
Marine Systems:
•$205 from the U.S. Navy for planning yard services for the Arleigh Burke-class (DDG-51) guided-missile destroyer program. The contract including options has a maximum potential value of $1.1 billion.
•$55 from the Navy to support non-nuclear maintenance on submarines based at the New England Naval Submarine Support Facility.
•$55 from the Navy for maintenance and modernization on the USS James E. Williams, a DDG-51 guided-missile destroyer.
•$35 for design and engineering services in support of U.S. and U.K. submarine technologies for the Navy.
•$35 for advanced nuclear plant studies (ANPS) in support of the Columbia-class submarine program for the Navy.
Combat Systems:
•Two contracts from the Canadian government for the Logistics Vehicle Modernization (LVM) program to provide a new fleet of light and heavy armored vehicles and logistics support services for the Canadian army. These contracts including options have a maximum potential value of $1.9 billion. The scope of work is shared with an industry partner.
•$25 from the U.S. Army for systems technical support on the Stryker fleet. The contract has a maximum potential value of $535.
•$385 for various munitions and ordnance. These contracts including options have a maximum potential value of $460.
•$390 from the Army primarily to establish additional capacity for artillery propellant.
•$375 from the Army to upgrade Stryker vehicles to the double-V-hull A1 configuration.
•$325 from the Army for the third phase of the low-rate initial production (LRIP) of the M10 Booker Combat Vehicle.
•$230 from the Army to upgrade Abrams main battle tanks to the system enhancement package version 3 (SEPv3) configuration.
•$120 from the Army to provide system and sustainment technical support services for Abrams main battle tanks.
Technologies:
•$530 for several key contracts for classified customers. These contracts have a maximum potential value of $665.
•$205 from the North Carolina Department of Health and Human Services to operate its Medicaid Management Information System. The contract including options has a maximum potential value of $525.
•$50 from the Centers for Medicare and Medicaid Services (CMS) to support the Benefits Coordination & Recovery Center. The contract including options has a maximum potential value of $285.
•$55 to provide information technology (IT) network operations and maintenance services to the Army. The contract including options has a maximum potential value of $200.
•$185 from CMS to provide cloud services and software tools.
•$30 to provide cybersecurity services to the U.S. Air Force. The contract including options has a maximum potential value of $185.
•$145 to provide ship modernization services for the Navy.
•$10 to integrate hardware and software solutions for Navy platforms. The contract including options has a maximum potential value of $110.
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EXHIBIT J
AEROSPACE SUPPLEMENTAL DATA - (UNAUDITED)
DOLLARS IN MILLIONS

Second QuarterSix Months
 2024202320242023
Gulfstream Aircraft Deliveries (units):
Large-cabin aircraft31 18 52 35 
Mid-cabin aircraft6 6 9 10 
Total37 24 61 45 
Aerospace Book-to-Bill:
Orders*$2,673 $2,476 $5,099 $4,203 
Revenue2,940 1,953 5,024 3,845 
Book-to-Bill Ratio0.9x1.3x1.0x1.1x

*Does not include customer defaults, liquidated damages, cancellations, foreign exchange fluctuations and other backlog adjustments.











# # #

v3.24.2
Cover
Jul. 24, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jul. 24, 2024
Entity Registrant Name GENERAL DYNAMICS CORPORATION
Entity Central Index Key 0000040533
Amendment Flag false
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 13-1673581
Entity Address, Address Line One 11011 Sunset Hills Road
Entity Address, City or Town Reston,
Entity Address, State or Province VA
Entity Address, Postal Zip Code 20190
City Area Code 703
Local Phone Number 876-3000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock
Trading Symbol GD
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity File Number 1-3671
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