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
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $14.38 bln | $13.80 bln (17 Analysts) |
Q4 EPS | $4.17 | ||
Q4 Net Income | $1.14 bln |
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.)