Phebe Novakovic: General Dynamics IT, Mission Systems Segments Now Report Earnings Under Technologies Group

Phebe Novakovic, chairman and CEO of General Dynamics (NYSE: GD) and a six-time Wash100 awardee, said the company merged its information technology and mission systems business segments into a single reporting unit called the technologies group, the Washington Business Journal reported Wednesday.

“This new reporting reflects the way we manage these businesses with group executive vice president Chris Marzilli reporting to me,” Novakovic said during the company’s earnings call Wednesday. “We’ve also discovered in this era of end-to-end solutions melding technology hardware and software, these business units increasingly go to market together, seeking to provide end-to-end systems support and solutions.”

The move, which took effect on Dec. 31, seeks to recognize the federal government’s demand for end-to-end platforms and services. The reorganization did not result in any management team changes but is expected to increase collaboration on federal contract opportunities driven by a higher demand for their combined services.

The combined technologies segment now includes IT, military intelligence systems and cybersecurity businesses. The segment posted $3.23 billion in revenue during the fourth quarter of 2020 and ended the year with $12.65 billion in revenue.

Overall, General Dynamics reported $10.5 billion in Q4 revenue, $1B in net earnings and a record-high backlog of $89.5 billion during the fourth quarter driven by major contract wins in the defense sector.

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