General Dynamics Corp (GD) stock is soaring 5.17% in pre-market trading on Wednesday following the release of its second-quarter 2025 financial results, which significantly exceeded analyst expectations. The defense and aerospace giant reported robust performance across its business segments, particularly in marine systems and aerospace.

The company posted earnings per share of $3.74, surpassing the analyst consensus estimate of $3.55. Revenue for the quarter came in at $13.04 billion, well above the expected $12.34 billion. This represents an 8.9% increase compared to the same quarter last year. General Dynamics' operating margin expanded by 30 basis points to reach 10.0%, indicating improved operational efficiency.

General Dynamics' CEO, Phebe Novakovic, highlighted the company's strong cash flow and healthy backlog, positioning it well for a good second half of the year. The order activity was particularly strong, with a consolidated book-to-bill ratio of 2.2-to-1. The defense segments saw an even higher ratio of 2.4-to-1, while the aerospace segment maintained a solid 1.3-to-1 ratio. Total orders for the quarter reached $28.3 billion, primarily driven by marine segment contracts for submarines, pushing the total backlog to an impressive $103.7 billion. The company's aerospace segment also showed improvement, delivering 38 aircraft in Q2, compared to 37 in the same period last year. With these results and positive outlook, investors are showing renewed confidence in General Dynamics' growth prospects across its diverse business portfolio.