- Fourth-quarter net earnings of $1.1
billion, diluted EPS of $4.15,
on $13.3 billion in revenue
- Full-year net earnings of $3.8
billion, diluted EPS of $13.63, on $47.7
billion in revenue
- $2.2 billion net cash provided by
operating activities in the quarter, 188% of net earnings
- Ended the year with $90.6 billion
in backlog
RESTON,
Va., Jan. 29, 2025 /PRNewswire/ -- General
Dynamics (NYSE: GD) today reported quarterly net earnings of
$1.1 billion, up 14.2% from the
year-ago quarter, on revenue of $13.3
billion, up 14.3% over the year-ago quarter. Diluted
earnings per share (EPS) was $4.15,
up 14% from the year-ago quarter.
For the full year, net earnings were $3.8
billion, up 14.1% from 2023, on revenue of $47.7 billion, up 12.9% from 2023. Diluted EPS
for the full year was $13.63, up
13.4% from 2023.
"We had a solid fourth quarter, capping off a year that saw
steady growth in revenue and earnings across all four segments,"
said Phebe N. Novakovic, chairman
and chief executive officer. "Order activity continued to be very
strong, with 1-to-1 book-to-bill for the year, even as revenue grew
by 13%, positioning us well for continued growth."
Gulfstream delivered 47 aircraft in the quarter, of which 42
were large-cabin aircraft. The company delivered a total of 136
aircraft during the year, of which 118 were large-cabin
aircraft.
Cash
Net cash provided by operating activities in the
quarter totaled $2.2 billion, or 188%
of net earnings. For the year, net cash provided by operating
activities totaled $4.1 billion, or
109% of net earnings.
During the year, the company invested $916 million in capital expenditures, made tax
payments of $560 million, repaid
fixed-rate notes of $500 million, and
returned $3 billion to shareholders
through dividends and share repurchases, ending 2024 with
$1.7 billion in cash and equivalents
on hand.
Backlog
Orders remained strong across the company with
a consolidated book-to-bill ratio, defined as orders divided by
revenue, of 0.9-to-1 for the quarter and 1-to-1 for the year. The
company ended the year with backlog of $90.6
billion and estimated potential contract value, representing
management's estimate of additional value in unfunded indefinite
delivery, indefinite quantity (IDIQ) contracts and unexercised
options, of $53.4 billion. Total
estimated contract value, the sum of all backlog components, was
$144 billion at year end, up 9.1%
from a year earlier.
In the Aerospace segment, orders in the quarter totaled
$3.8 billion. Backlog at the end of
the year was $19.7 billion. Aerospace
book-to-bill was 1-to-1 for the quarter and the year.
In the three defense segments, significant awards in the quarter
include a U.S. Air Force contract with maximum potential value of
$5.6 billion to modernize, integrate
and operate the Department of Defense's Mission Partner
Environments (MPEs); a U.S. Space Force contract with maximum
potential value of $2.2 billion to
provide sustainment services for the Mobile User Objective System
(MUOS) satellite communications system; $1.9
billion from the U.S. Navy for multiple contracts to provide
services, materials and parts for Virginia-class submarines;
$370 million from the U.S. Army for
the production of 155mm artillery projectile metal parts; contracts
for various munitions and ordnance with maximum potential value of
$820 million; and several key
contracts for classified customers with maximum potential value of
$1.4 billion.
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 110,000 people worldwide and generated $47.7 billion in revenue in 2024. More
information is available at www.gd.com.
WEBCAST INFORMATION: General Dynamics will webcast its
fourth-quarter and full-year 2024 financial results
conference call today at 9 a.m. EST.
The webcast will be a listen-only audio event available at GD.com.
An on-demand replay of the webcast will be available by telephone
two hours after the end of the call through February 5 at 800-770-2030 (international +1
647-362-9199), conference ID 4299949. Charts furnished to investors
and securities analysts in connection with the announcement of
financial results are available at GD.com. General Dynamics intends
to supplement those charts on its website after its earnings call
today to include information about 2025 guidance presented during
the call.
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 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.
|
EXHIBIT
A
CONSOLIDATED
STATEMENT OF EARNINGS - (UNAUDITED)
DOLLARS IN
MILLIONS, EXCEPT PER SHARE AMOUNTS
|
|
|
|
|
|
|
Three Months Ended December 31
|
|
Variance
|
|
|
|
|
|
2024
|
|
2023
|
|
$
|
|
|
%
|
|
|
Revenue
|
|
|
|
$
13,338
|
|
$
11,668
|
|
$
1,670
|
|
|
|
14.3 %
|
|
Operating costs and
expenses
|
|
|
|
(11,915)
|
|
(10,380)
|
|
(1,535)
|
|
|
|
|
|
|
Operating
earnings
|
|
|
|
1,423
|
|
1,288
|
|
135
|
|
|
|
10.5 %
|
|
Other, net
|
|
|
|
21
|
|
17
|
|
4
|
|
|
|
|
|
|
Interest,
net
|
|
|
|
(76)
|
|
(78)
|
|
2
|
|
|
|
|
|
|
Earnings before income
tax
|
|
|
|
1,368
|
|
1,227
|
|
141
|
|
|
|
11.5 %
|
|
Provision for income
tax, net
|
|
|
|
(220)
|
|
(222)
|
|
2
|
|
|
|
|
|
|
Net earnings
|
|
|
|
$
1,148
|
|
$
1,005
|
|
$
143
|
|
|
|
14.2 %
|
|
Earnings per
share—basic
|
|
|
|
$
4.20
|
|
$
3.68
|
|
$
0.52
|
|
|
|
14.1 %
|
|
Basic weighted average
shares outstanding
|
|
|
|
273.4
|
|
272.8
|
|
|
|
|
|
|
|
|
Earnings per
share—diluted
|
|
|
|
$
4.15
|
|
$
3.64
|
|
$
0.51
|
|
|
|
14.0 %
|
|
Diluted weighted
average shares outstanding
|
|
|
|
276.9
|
|
275.9
|
|
|
|
|
|
|
|
|
EXHIBIT
B
CONSOLIDATED
STATEMENT OF EARNINGS - (UNAUDITED)
DOLLARS IN
MILLIONS, EXCEPT PER SHARE AMOUNTS
|
|
|
|
|
|
Year Ended December 31
|
|
Variance
|
|
|
|
|
|
2024
|
|
2023
|
|
$
|
|
|
%
|
|
|
Revenue
|
|
|
|
$
47,716
|
|
$
42,272
|
|
$
5,444
|
|
|
|
12.9 %
|
|
Operating costs and
expenses
|
|
|
|
(42,920)
|
|
(38,027)
|
|
(4,893)
|
|
|
|
|
|
|
Operating
earnings
|
|
|
|
4,796
|
|
4,245
|
|
551
|
|
|
|
13.0 %
|
|
Other, net
|
|
|
|
68
|
|
82
|
|
(14)
|
|
|
|
|
|
|
Interest,
net
|
|
|
|
(324)
|
|
(343)
|
|
19
|
|
|
|
|
|
|
Earnings before income
tax
|
|
|
|
4,540
|
|
3,984
|
|
556
|
|
|
|
14.0 %
|
|
Provision for income
tax, net
|
|
|
|
(758)
|
|
(669)
|
|
(89)
|
|
|
|
|
|
|
Net earnings
|
|
|
|
$
3,782
|
|
$
3,315
|
|
$
467
|
|
|
|
14.1 %
|
|
Earnings per
share—basic
|
|
|
|
$
13.81
|
|
$
12.14
|
|
$
1.67
|
|
|
|
13.8 %
|
|
Basic weighted average
shares outstanding
|
|
|
|
273.9
|
|
273.1
|
|
|
|
|
|
|
|
|
Earnings per
share—diluted
|
|
|
|
$
13.63
|
|
$
12.02
|
|
$
1.61
|
|
|
|
13.4 %
|
|
Diluted weighted
average shares outstanding
|
|
|
|
277.5
|
|
275.7
|
|
|
|
|
|
|
|
|
EXHIBIT
C
REVENUE AND
OPERATING EARNINGS BY SEGMENT - (UNAUDITED)
DOLLARS IN
MILLIONS
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31
|
|
Variance
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
$
|
|
|
%
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace
|
|
|
|
|
|
|
$
3,743
|
|
$
2,744
|
|
$
999
|
|
|
36.4 %
|
|
Marine
Systems
|
|
|
|
|
|
|
3,960
|
|
3,408
|
|
552
|
|
|
16.2 %
|
|
Combat
Systems
|
|
|
|
|
|
|
2,395
|
|
2,364
|
|
31
|
|
|
1.3 %
|
|
Technologies
|
|
|
|
|
|
|
3,240
|
|
3,152
|
|
88
|
|
|
2.8 %
|
|
Total
|
|
|
|
|
|
|
$
13,338
|
|
$
11,668
|
|
$
1,670
|
|
|
14.3 %
|
|
Operating earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace
|
|
|
|
|
|
|
$
585
|
|
$
449
|
|
$
136
|
|
|
30.3 %
|
|
Marine
Systems
|
|
|
|
|
|
|
200
|
|
217
|
|
(17)
|
|
|
(7.8) %
|
|
Combat
Systems
|
|
|
|
|
|
|
356
|
|
351
|
|
5
|
|
|
1.4 %
|
|
Technologies
|
|
|
|
|
|
|
319
|
|
305
|
|
14
|
|
|
4.6 %
|
|
Corporate
|
|
|
|
|
|
|
(37)
|
|
(34)
|
|
(3)
|
|
|
(8.8) %
|
|
Total
|
|
|
|
|
|
|
$
1,423
|
|
$
1,288
|
|
$
135
|
|
|
10.5 %
|
|
Operating margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace
|
|
|
|
|
|
|
15.6 %
|
|
16.4 %
|
|
|
|
|
|
|
|
Marine
Systems
|
|
|
|
|
|
|
5.1 %
|
|
6.4 %
|
|
|
|
|
|
|
|
Combat
Systems
|
|
|
|
|
|
|
14.9 %
|
|
14.8 %
|
|
|
|
|
|
|
|
Technologies
|
|
|
|
|
|
|
9.8 %
|
|
9.7 %
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
10.7 %
|
|
11.0 %
|
|
|
|
|
|
|
|
EXHIBIT
D
REVENUE AND
OPERATING EARNINGS BY SEGMENT - (UNAUDITED)
DOLLARS IN
MILLIONS
|
|
|
|
|
|
|
|
|
|
Year Ended December 31
|
|
Variance
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
$
|
|
|
%
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace
|
|
|
|
|
|
|
|
$
11,249
|
|
$
8,621
|
|
$
2,628
|
|
|
30.5 %
|
|
Marine
Systems
|
|
|
|
|
|
|
|
14,343
|
|
12,461
|
|
1,882
|
|
|
15.1 %
|
|
Combat
Systems
|
|
|
|
|
|
|
|
8,997
|
|
8,268
|
|
729
|
|
|
8.8 %
|
|
Technologies
|
|
|
|
|
|
|
|
13,127
|
|
12,922
|
|
205
|
|
|
1.6 %
|
|
Total
|
|
|
|
|
|
|
|
$
47,716
|
|
$
42,272
|
|
$
5,444
|
|
|
12.9 %
|
|
Operating earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace
|
|
|
|
|
|
|
|
$
1,464
|
|
$
1,182
|
|
$
282
|
|
|
23.9 %
|
|
Marine
Systems
|
|
|
|
|
|
|
|
935
|
|
874
|
|
61
|
|
|
7.0 %
|
|
Combat
Systems
|
|
|
|
|
|
|
|
1,276
|
|
1,147
|
|
129
|
|
|
11.2 %
|
|
Technologies
|
|
|
|
|
|
|
|
1,260
|
|
1,202
|
|
58
|
|
|
4.8 %
|
|
Corporate
|
|
|
|
|
|
|
|
(139)
|
|
(160)
|
|
21
|
|
|
13.1 %
|
|
Total
|
|
|
|
|
|
|
|
$
4,796
|
|
$
4,245
|
|
$
551
|
|
|
13.0 %
|
|
Operating margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace
|
|
|
|
|
|
|
|
13.0 %
|
|
13.7 %
|
|
|
|
|
|
|
|
Marine
Systems
|
|
|
|
|
|
|
|
6.5 %
|
|
7.0 %
|
|
|
|
|
|
|
|
Combat
Systems
|
|
|
|
|
|
|
|
14.2 %
|
|
13.9 %
|
|
|
|
|
|
|
|
Technologies
|
|
|
|
|
|
|
|
9.6 %
|
|
9.3 %
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
10.1 %
|
|
10.0 %
|
|
|
|
|
|
|
|
EXHIBIT
E
CONSOLIDATED
BALANCE SHEET
DOLLARS IN
MILLIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2024
|
|
December 31,
2023
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
equivalents
|
|
|
|
|
|
|
|
|
|
|
$
1,697
|
|
$
1,913
|
|
Accounts
receivable
|
|
|
|
|
|
|
|
|
|
|
2,977
|
|
3,004
|
|
Unbilled
receivables
|
|
|
|
|
|
|
|
|
|
|
8,248
|
|
7,997
|
|
Inventories
|
|
|
|
|
|
|
|
|
|
|
9,724
|
|
8,578
|
|
Other current
assets
|
|
|
|
|
|
|
|
|
|
|
1,740
|
|
2,123
|
|
Total current
assets
|
|
|
|
|
|
|
|
|
|
|
24,386
|
|
23,615
|
|
Noncurrent assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
|
|
|
|
|
|
|
|
6,467
|
|
6,198
|
|
Intangible assets,
net
|
|
|
|
|
|
|
|
|
|
|
1,520
|
|
1,656
|
|
Goodwill
|
|
|
|
|
|
|
|
|
|
|
20,556
|
|
20,586
|
|
Other assets
|
|
|
|
|
|
|
|
|
|
|
2,951
|
|
2,755
|
|
Total noncurrent
assets
|
|
|
|
|
|
|
|
|
|
|
31,494
|
|
31,195
|
|
Total assets
|
|
|
|
|
|
|
|
|
|
|
$
55,880
|
|
$
54,810
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt and
current portion of long-term debt
|
|
|
|
|
|
|
|
|
|
|
$
1,502
|
|
$
507
|
|
Accounts
payable
|
|
|
|
|
|
|
|
|
|
|
3,344
|
|
3,095
|
|
Customer advances and
deposits
|
|
|
|
|
|
|
|
|
|
|
9,491
|
|
9,564
|
|
Other current
liabilities
|
|
|
|
|
|
|
|
|
|
|
3,487
|
|
3,266
|
|
Total current
liabilities
|
|
|
|
|
|
|
|
|
|
|
17,824
|
|
16,432
|
|
Noncurrent liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
|
|
|
|
|
|
|
|
7,260
|
|
8,754
|
|
Other
liabilities
|
|
|
|
|
|
|
|
|
|
|
8,733
|
|
8,325
|
|
Total noncurrent
liabilities
|
|
|
|
|
|
|
|
|
|
|
15,993
|
|
17,079
|
|
Shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
|
|
|
|
|
|
|
482
|
|
482
|
|
Surplus
|
|
|
|
|
|
|
|
|
|
|
4,062
|
|
3,760
|
|
Retained
earnings
|
|
|
|
|
|
|
|
|
|
|
41,487
|
|
39,270
|
|
Treasury
stock
|
|
|
|
|
|
|
|
|
|
|
(22,450)
|
|
(21,054)
|
|
Accumulated other
comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
(1,518)
|
|
(1,159)
|
|
Total shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
22,063
|
|
21,299
|
|
Total liabilities and shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
$
55,880
|
|
$
54,810
|
|
EXHIBIT
F
CONSOLIDATED
STATEMENT OF CASH FLOWS - (UNAUDITED)
DOLLARS IN
MILLIONS
|
|
|
|
Year Ended December 31
|
|
|
2024
|
|
2023
|
|
Cash flows from operating activities—continuing
operations:
|
|
|
|
|
|
Net
earnings
|
|
$
3,782
|
|
$
3,315
|
|
Adjustments to
reconcile net earnings to net cash from operating
activities:
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
644
|
|
608
|
|
Amortization of
intangible and finance lease right-of-use assets
|
|
242
|
|
255
|
|
Equity-based
compensation expense
|
|
183
|
|
181
|
|
Deferred income tax
benefit
|
|
(86)
|
|
(177)
|
|
(Increase) decrease in
assets, net of effects of business acquisitions:
|
|
|
|
|
|
Accounts
receivable
|
|
16
|
|
38
|
|
Unbilled
receivables
|
|
(261)
|
|
913
|
|
Inventories
|
|
(1,195)
|
|
(2,219)
|
|
Increase (decrease) in
liabilities, net of effects of business acquisitions:
|
|
|
|
|
|
Accounts
payable
|
|
247
|
|
(303)
|
|
Customer advances and
deposits
|
|
343
|
|
2,415
|
|
Income taxes
payable
|
|
266
|
|
(209)
|
|
Other, net
|
|
(69)
|
|
(107)
|
|
Net cash provided by
operating activities
|
|
4,112
|
|
4,710
|
|
Cash flows from investing
activities:
|
|
|
|
|
|
Capital
expenditures
|
|
(916)
|
|
(904)
|
|
Other, net
|
|
(37)
|
|
(37)
|
|
Net cash used by
investing activities
|
|
(953)
|
|
(941)
|
|
Cash flows from financing
activities:
|
|
|
|
|
|
Dividends
paid
|
|
(1,529)
|
|
(1,428)
|
|
Purchases of common
stock
|
|
(1,501)
|
|
(434)
|
|
Repayment of
fixed-rate notes
|
|
(500)
|
|
(1,250)
|
|
Other, net
|
|
161
|
|
18
|
|
Net cash used by
financing activities
|
|
(3,369)
|
|
(3,094)
|
|
Net cash used by
discontinued operations
|
|
(6)
|
|
(4)
|
|
Net (decrease) increase in cash and
equivalents
|
|
(216)
|
|
671
|
|
Cash and equivalents at beginning of
year
|
|
1,913
|
|
1,242
|
|
Cash and equivalents at end of
year
|
|
$
1,697
|
|
$
1,913
|
|
EXHIBIT
G
ADDITIONAL
FINANCIAL INFORMATION - (UNAUDITED)
DOLLARS IN
MILLIONS, EXCEPT PER SHARE AMOUNTS
|
|
|
Other Financial Information:
|
|
|
|
|
|
|
|
|
|
|
December 31, 2024
|
|
December 31,
2023
|
|
|
|
|
|
Debt-to-equity
(a)
|
|
39.7 %
|
|
43.5 %
|
|
|
|
|
|
Book value per share
(b)
|
|
$
81.61
|
|
$
77.85
|
|
|
|
|
|
Shares
outstanding
|
|
270,340,502
|
|
273,599,948
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
|
|
Twelve Months
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Income tax payments,
net
|
|
$
435
|
|
$
607
|
|
$
560
|
|
$
1,100
|
|
Company-sponsored
research and
development
(c)
|
|
$
144
|
|
$
115
|
|
$
565
|
|
$
510
|
|
Return on sales
(d)
|
|
8.6 %
|
|
8.6 %
|
|
7.9 %
|
|
7.8 %
|
|
Return on equity
(e)
|
|
|
|
|
|
17.2 %
|
|
16.8 %
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures:
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
|
|
Twelve Months
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Free cash flow:
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
2,160
|
|
$
1,196
|
|
$
4,112
|
|
$
4,710
|
|
Capital
expenditures
|
|
(355)
|
|
(304)
|
|
(916)
|
|
(904)
|
|
Free cash flow
(f)
|
|
$
1,805
|
|
$
892
|
|
$
3,196
|
|
$
3,806
|
|
|
|
|
|
|
|
|
|
|
Return on invested capital:
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
|
|
|
|
$
3,782
|
|
$
3,315
|
|
After-tax interest
expense
|
|
|
|
|
|
310
|
|
315
|
|
After-tax amortization
expense
|
|
|
|
|
|
191
|
|
201
|
|
Net operating profit
after taxes
|
|
|
|
|
|
4,283
|
|
3,831
|
|
Average invested
capital
|
|
|
|
|
|
32,451
|
|
31,258
|
|
Return on invested
capital (g)
|
|
|
|
|
|
13.2 %
|
|
12.3 %
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2024
|
|
December 31,
2023
|
|
|
|
|
|
Net debt:
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
$
8,762
|
|
$
9,261
|
|
|
|
|
|
Less cash and
equivalents
|
|
1,697
|
|
1,913
|
|
|
|
|
|
Net debt
(h)
|
|
$
7,065
|
|
$
7,348
|
|
|
|
|
|
|
|
Notes describing the
calculation of the other financial information and a reconciliation
of non-GAAP financial measures are on the following
page.
|
|
EXHIBIT G
(Cont.)
ADDITIONAL
FINANCIAL INFORMATION - (UNAUDITED)
DOLLARS IN
MILLIONS, EXCEPT PER SHARE AMOUNTS
|
|
|
(a)
|
Debt-to-equity ratio is
calculated as total debt divided by total equity as of year
end.
|
|
(b)
|
Book value per share is
calculated as total equity divided by total outstanding shares as
of year end.
|
|
(c)
|
Includes independent
research and development and Aerospace product-development
costs.
|
|
(d)
|
Return on sales is
calculated as net earnings divided by revenue.
|
|
(e)
|
Return on equity is
calculated by dividing net earnings by our average total equity
during the year. Average total equity is calculated
using
the total equity
balance at the end of the preceding year and the total equity
balances at the end of each of the four quarters of the
year
presented.
|
|
(f)
|
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.
|
|
(g)
|
We believe return on
invested capital (ROIC) is a useful measure for investors because
it reflects our ability to generate returns from the
capital we have
deployed in our operations. We use ROIC to evaluate investment
decisions and as a performance measure in evaluating
management. We
define ROIC as net operating profit after taxes divided by
average invested capital. Net operating profit after taxes
is
defined as net earnings
plus after-tax interest and amortization expense, calculated using
the statutory federal income tax rate. Average
invested capital is
defined as the sum of the average debt and average shareholders'
equity excluding accumulated other comprehensive
loss. Average debt and
average shareholders' equity excluding accumulated other
comprehensive loss are calculated using the respective
balances at the end of
the preceding year and the respective balances at the end of each
of the four quarters of the year presented. ROIC
excludes goodwill
impairments and non-economic accounting changes as they are not
reflective of company performance.
|
|
(h)
|
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.
|
|
EXHIBIT
H
BACKLOG -
(UNAUDITED)
DOLLARS IN
MILLIONS
|
|
|
|
|
|
|
Funded
|
|
Unfunded
|
|
Total
Backlog
|
|
Estimated
Potential
Contract Value*
|
|
Total
Estimated
Contract Value
|
|
Fourth Quarter 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace
|
|
|
|
|
$
18,895
|
|
$
798
|
|
$
19,693
|
|
$
1,132
|
|
$
20,825
|
|
Marine
Systems
|
|
|
|
|
30,530
|
|
9,288
|
|
39,818
|
|
9,560
|
|
49,378
|
|
Combat
Systems
|
|
|
|
|
16,142
|
|
838
|
|
16,980
|
|
8,647
|
|
25,627
|
|
Technologies
|
|
|
|
|
9,577
|
|
4,529
|
|
14,106
|
|
34,029
|
|
48,135
|
|
Total
|
|
|
|
|
$
75,144
|
|
$
15,453
|
|
$
90,597
|
|
$
53,368
|
|
$
143,965
|
|
Third Quarter 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace
|
|
|
|
|
$
18,859
|
|
$
937
|
|
$
19,796
|
|
$
254
|
|
$
20,050
|
|
Marine
Systems
|
|
|
|
|
29,008
|
|
11,463
|
|
40,471
|
|
9,578
|
|
50,049
|
|
Combat
Systems
|
|
|
|
|
17,289
|
|
682
|
|
17,971
|
|
8,016
|
|
25,987
|
|
Technologies
|
|
|
|
|
9,794
|
|
4,602
|
|
14,396
|
|
27,093
|
|
41,489
|
|
Total
|
|
|
|
|
$
74,950
|
|
$
17,684
|
|
$
92,634
|
|
$
44,941
|
|
$
137,575
|
|
Fourth Quarter 2023:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace
|
|
|
|
|
$
19,557
|
|
$
897
|
|
$
20,454
|
|
$
451
|
|
$
20,905
|
|
Marine
Systems
|
|
|
|
|
30,141
|
|
15,755
|
|
45,896
|
|
3,647
|
|
49,543
|
|
Combat
Systems
|
|
|
|
|
13,816
|
|
721
|
|
14,537
|
|
6,236
|
|
20,773
|
|
Technologies
|
|
|
|
|
8,961
|
|
3,779
|
|
12,740
|
|
28,011
|
|
40,751
|
|
Total
|
|
|
|
|
$
72,475
|
|
$
21,152
|
|
$
93,627
|
|
$
38,345
|
|
$
131,972
|
|
|
* 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.
|
|
EXHIBIT
H-1
BACKLOG - (UNAUDITED)
DOLLARS IN MILLIONS
|
https://mma.prnewswire.com/media/2607828/EXHIBIT_H_1.jpg
|
EXHIBIT
H-2
BACKLOG BY
SEGMENT - (UNAUDITED)
DOLLARS IN MILLIONS
|
https://mma.prnewswire.com/media/2607827/EXHIBIT_H_2.jpg
|
EXHIBIT
I
FOURTH QUARTER 2024 SIGNIFICANT ORDERS - (UNAUDITED)
DOLLARS IN MILLIONS
|
We received the following significant contract awards during the
fourth quarter of 2024:
Marine Systems:
- $880 from the U.S. Navy for
long-lead materials for Block V Virginia-class submarines.
- $375 from the Navy for lead yard
services, development studies and design efforts for Virginia-class
submarines.
- $350 from the Navy for long-lead
materials for Block VI Virginia-class submarines.
- $245 from the Navy for
procurement and delivery of initial Virginia-class spare parts to
support maintenance availabilities.
- $230 from the Navy to provide
engineering, technical, design and planning yard support services
for operational strategic and attack submarines.
- $80 from the Navy for maintenance
and modernization work on the USS Hartford, a Los Angeles-class
submarine.
Combat Systems:
- $505 for various munitions and
ordnance. These contracts have a maximum potential value of
$820.
- $370 from the U.S. Army for the
production of 155mm artillery projectile metal parts.
- $65 to provide configuration
changes for Canadian light armored vehicles (LAV).
- $50 to produce launch pod
containers for the Guided Multiple Launch Rocket System (GMLRS) for
the Army.
Technologies:
- $50 from the U.S. Air Force to
modernize, integrate and operate the Department of Defense's
Mission Partner Environments (MPEs), enabling the military and its
partners to securely communicate and share real-time information at
multiple levels of classification. The contract has a maximum
potential value of $5.6 billion.
- A contract from the U.S. Space Force to
provide sustainment services for the Mobile User Objective
System (MUOS) satellite communications system. The contract has a
maximum potential value of $2.2
billion.
- $305 for several key contracts
for classified customers. These contracts including options have a
maximum potential value of $1.4
billion.
- $140 from the Navy to manufacture
and test various components for MK54 torpedoes and for general
engineering services. The contract including options has a maximum
potential value of $810.
- $280 for two awards from the
New York State Department of
Health to operate and modernize the state's health insurance
exchange and to support and enhance the state's Medicaid Management
Information System. These contracts including options have a
maximum potential value of $480.
- $115 from the Department of
Veteran Affairs (VA) under the Veterans Intake, Conversion and
Communications Services (VICCS) program to digitally convert
historical veteran records and automate data extraction of existing
records. The contract including options has a maximum potential
value of $345.
- A contract from the VA to provide information technology (IT)
support services to more than 600,000 VA personnel at all VA
locations nationwide. The contract including options has a maximum
potential value of $230.
- $155 from the
National Geospatial-Intelligence Agency (NGA) to provide
hybrid cloud services and IT design, engineering, and operations
and sustainment services.
|
EXHIBIT
J
AEROSPACE
SUPPLEMENTAL DATA - (UNAUDITED)
DOLLARS IN
MILLIONS
|
|
|
|
Fourth Quarter
|
|
Twelve Months
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Gulfstream Aircraft Deliveries
(units):
|
|
|
|
|
|
|
|
|
|
Large-cabin
aircraft
|
|
42
|
|
32
|
|
118
|
|
89
|
|
Mid-cabin
aircraft
|
|
5
|
|
7
|
|
18
|
|
22
|
|
Total
|
|
47
|
|
39
|
|
136
|
|
111
|
|
|
|
|
|
|
|
|
|
|
Aerospace Book-to-Bill:
|
|
|
|
|
|
|
|
|
|
Orders*
|
|
$
3,814
|
|
$
3,164
|
|
$
11,278
|
|
$
10,283
|
|
Revenue
|
|
3,743
|
|
2,744
|
|
11,249
|
|
8,621
|
|
Book-to-Bill Ratio
|
|
1.0x
|
|
1.2x
|
|
1.0x
|
|
1.2x
|
|
|
* Does not include
customer defaults, liquidated damages, cancellations, foreign
exchange fluctuations and other backlog
adjustments.
|
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SOURCE General Dynamics
