General Dynamics Reports Strong Q4 & Full-Year 2024 Results - GovCon Wire
Hello, Guest!

General Dynamics Reports Strong Q4 & Full-Year 2024 Results

General Dynamics reported double-digit revenue and profit growth in the fourth quarter of 2024 compared to Q4 2023 and ended the year with a $90.6 billion in backlog plus an estimated additional value in unfunded indefinite delivery, indefinite quantity contracts and unexercised options, of $53.4 billion.

The company said Wednesday in the three months ending Dec. 31, 2024, revenue and net earnings increased 14.3% and 14.2% year-over-year to $13.34 billion and $1.15 billion, respectively. For the full year, the top and bottom lines rose 12.9% and 14.1%, respectively, to $47.72 billion and $3.78 billion versus 2023. Diluted earnings per share went up 13.4% to $13.63 from a year ago.

In a press release Wednesday, Phebe Novakovic, chairman and CEO of General Dynamics and nine-time Wash100 awardee, said, “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 1-to-1 book-to-bill for the year, even as revenue grew by 13%, positioning us well for continued growth.”

Segment Performance

During the earnings call, Novakovic noted the aerospace segment’s continuing revenue and earnings growth. The strong demand for Gulfstream Aircraft, the overall strength of the Gulfstream service business and the continuing growth and performance improvement at Jet Aviation resulted in a 36.4% and 30.3% quarter-over-quarter increase in revenue and earnings to $3.7 billion and $585 million.

Kimberly Kuryea, chief financial officer of General Dynamics, said, “Our order activity and backlog continued to be a strong story for us in 2024.” Orders remained strong across the company, evidenced by the consolidated book-to-bill ratio of 0.9-to-1 for the quarter and 1-to-1 for the year. At year-end, the sum of all backlog components reached $144 billion.

According to Kuryea, General Dynamics always strives for cash conversion at or around 100%, although the free cash flow of $3.2 billion in 2024 only represented an 85% cash conversion rate. She said working capital in inventories at Gulfstream grew due to delayed deliveries, not to mention production continued to ramp up. The company returned approximately 95% of free cash flow last year to shareholders through dividends and share repurchases.

Novakovic expects company-wide revenue growth in 2025 of around 5.5% to approximately $50.3 billion and anticipates a margin increase of 10.3% from 2024. The EPS forecast is $14.80, or within the range of $14.75 to $14.85. She feels very good about the business and the prospects for the year. The CEO added that General Dynamics has some very good opportunities to improve operating margins and experience some additional growth.

Video of the Day