Analysis for GD
- 📈 Growth — 28/30
- 💰 Profitability — 16/20
- 🏦 Financial Health — 17/20
- 💵 Valuation — 15/20
- ⚠️ Risk — 4/10
Summary:
📈 Growth & Financial Trajectory
Over 8 quarters from 2024 Q3 to 2026 Q2, General Dynamics revenues rose from about $11.67B to $14.09B, a cumulative increase of roughly 21%. Net income climbed from about $0.93B to $1.16B, up about 25%. Despite modest quarterly dips (notably 2024 Q4 and 2025 Q1), the trend is upward and supports a stronger base into 2026.
💰 Margins & Cash Flow
Operating margins hovered near 10–11%, indicating stable profitability and limited margin erosion. Cash flow from operations remained positive in every quarter, with stronger prints in late 2025 and into 2026 (roughly $1.6B–$2.0B per quarter). Investing cash outflows were modest relative to operating cash, and free cash flow remained healthy.
🛡️ Balance Sheet & Liquidity
Assets run in the mid- to high-$50B, with current assets around $25–28B and current liabilities about $18–19B, yielding a liquidity cushion. Liabilities are predominantly long-term, and equity sits in the high-$20Bs, supporting a solid balance sheet and moderate leverage.
⚠️ Key Drivers & Risks
- Drivers: Defense/government contracts; naval/aerospace procurement programs.
- Risks: Defense budget cyclicality; policy shifts impacting order visibility and valuation.