Overview

• Defense contractor's Q4 revenue rose 7.8% yr/yr, beating analyst expectations

• Company ended 2025 with $118 bln in backlog, up 30% yr/yr

• Company's book-to-bill ratio was 1.6x for Q4, indicating strong demand

Outlook

• General Dynamics plans increased capital expenditures in 2026

• Company sees strong demand with $118 bln backlog

Result Drivers

• STRONG DEMAND - General Dynamics reported a book-to-bill ratio of 1.6x in Q4, indicating strong demand across its segments

• BACKLOG GROWTH - Co ended 2025 with $118 bln in backlog, up 30% from 2024, driven by strong order intake

• CAPITAL EXPENDITURES - Co invested $1.2 bln in capital expenditures in 2025, up 27% from 2024, to support future growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for General Dynamics Corp is $390.00, about 6.4% above its January 27 closing price of $366.62

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release: ID:nPn632Dxa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)