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8K - Logo.gif
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) October 23, 2024 (October 23, 2024)
Commission File Number 1-3671
GENERAL DYNAMICS CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
13-1673581
State or other jurisdiction of incorporation or organizationI.R.S. Employer Identification No.
11011 Sunset Hills RoadReston,Virginia20190
Address of principal executive officesZip code


(703) 876-3000
Registrant’s telephone number, including area code


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common StockGDNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o




Item 2.02    Results of Operations and Financial Condition

On October 23, 2024, General Dynamics announced its financial results for the quarter ended September 29, 2024. A copy of the press release is being furnished as Exhibit 99.1 to this Form 8-K and is hereby incorporated by reference.
Item 9.01    Financial Statements and Exhibits
(d)     Exhibits (furnished only)




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
GENERAL DYNAMICS CORPORATION
by/s/ William A. Moss
William A. Moss
Vice President and Controller
(Authorized Officer and Chief Accounting Officer)
Dated: October 23, 2024




Exhibit 99.1 
 
bluegdlogo.jpg
11011 Sunset Hills Road 
Reston, Virginia 20190News
www.gd.com 

Contact: Jeff A. Davis
Tel: 703 876 3483
press@generaldynamics.com


General Dynamics Reports Third-Quarter 2024 Financial Results

October 23, 2024

•Revenue of $11.7 billion, up 10.4% from year-ago quarter
•Operating earnings of $1.2 billion, up 11.7% from year-ago quarter
•Diluted EPS of $3.35, up 10.2% from year-ago quarter
•Operating margin of 10.1%, a 10-basis-point expansion from year-ago quarter


RESTON, Va. – General Dynamics (NYSE: GD) today reported third-quarter 2024 revenue of $11.7 billion, up 10.4% from the third quarter of 2023. Operating earnings of $1.2 billion were up 11.7% from the year-ago quarter. Diluted earnings per share (EPS) were $3.35, up 10.2% from the year-ago quarter. Operating margin for the quarter was 10.1%, a 10-basis-point expansion from the year-ago quarter.

“The company continues to see strong growth and steady improvement in operating performance,” said Phebe Novakovic, chairman and chief executive officer. “Demand across the portfolio also remains strong in the current environment.”

Gulfstream delivered 28 aircraft in the quarter, of which 24 were large-cabin aircraft, including four G700s. This compares with 27 aircraft delivered in the year-ago quarter, of which 22 were large cabin.

Cash and Capital Deployment
Net cash provided by operating activities in the quarter was $1.4 billion, or 152% of net earnings. During the quarter, the company paid $390 million in dividends, invested $201 million in capital expenditures, and used $44 million to repurchase shares, ending the quarter with $2.1 billion in cash and equivalents on hand.

Orders and Backlog
The consolidated book-to-bill ratio, defined as orders divided by revenue, was 1.1-to-1 for the quarter. Company-wide backlog was $92.6 billion. Estimated potential contract value, representing management’s estimate of additional value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $45 billion. Total estimated contract value, the sum of all backlog components, was $137.6 billion.



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In the Aerospace segment, orders in the quarter totaled $2.4 billion. The segment ended the quarter with backlog of $19.8 billion.

In the defense segments, orders in the quarter totaled $10.5 billion, with particular strength in the Combat Systems and Technologies segments. Significant awards in the defense segments included $885 million for various munitions and ordnance, with maximum potential value of $1.7 billion; $465 million, with maximum potential value of $1.7 billion, for two U.S. Army contracts for production of 155mm artillery projectile metal parts; $780 million, with maximum potential contract value of more than $6.7 billion including options, for the construction of additional John Lewis-class (T-AO-205) fleet replenishment oilers; $1.5 billion for long-lead materials for Block VI Virginia-class submarines; $840 million, with maximum potential value of $1 billion, for several key contracts for classified customers; and $605 million for multiple awards from the U.S. Space Development Agency to develop and integrate ground systems for the low-Earth orbit satellite network. A detailed list of significant awards is provided in Exhibit I.

About General Dynamics
Headquartered in Reston, Virginia, General Dynamics is a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapons systems and munitions; and technology products and services. General Dynamics employs more than 100,000 people worldwide and generated $42.3 billion in revenue in 2023. More information is available at www.gd.com.

WEBCAST INFORMATION: General Dynamics will webcast its third-quarter 2024 financial results conference call at 9 a.m. EDT on Wednesday, October 23, 2024. The webcast will be a listen-only audio event available at www.gd.com. An on-demand replay of the webcast will be available by telephone two hours after the end of the call through October 30, 2024, at 800-770-2030 (international: +1 609-800-9909), conference ID 4299949. Charts furnished to investors and securities analysts in connection with General Dynamics’ announcement of its financial results are available at www.gd.com.

This press release contains forward-looking statements (FLS), including statements about the company’s future operational and financial performance, which are based on management’s expectations, estimates, projections and assumptions. Words such as “expects,” “anticipates,” “plans,” “believes,” “forecasts,” “scheduled,” “outlook,” “estimates,” “should” and variations of these words and similar expressions are intended to identify FLS. In making FLS, we rely on assumptions and analyses based on our experience and perception of historical trends; current conditions and expected future developments; and other factors, estimates and judgments we consider reasonable and appropriate based on information available to us at the time. FLS are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. FLS are not guarantees of future performance and involve factors, risks and uncertainties that are difficult to predict. Actual future results and trends may differ materially from what is forecast in the FLS. All FLS speak only as of the date they were made. We do not undertake any obligation to update or publicly release revisions to FLS to reflect events, circumstances or changes in expectations after the date of this press release. Additional information regarding these factors is contained in the company’s filings with the SEC, and these factors may be revised or supplemented in future SEC filings. In addition, this press release contains some financial measures not prepared in accordance with U.S. generally accepted accounting principles (GAAP). While we believe these non-GAAP metrics provide useful information for investors, there are limitations associated with their use, and our calculations of these metrics may not be comparable to similarly titled measures of other companies. Non-GAAP metrics should not be considered in isolation from, or as a substitute for, GAAP measures. Reconciliations to comparable GAAP measures and other information relating to our non-GAAP measures are included in other filings with the SEC, which are available at investorrelations.gd.com.
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EXHIBIT A
CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS

 
 Three Months EndedVariance
 September 29, 2024October 1, 2023$%
Revenue$11,671 $10,571 $1,100 10.4 %
Operating costs and expenses(10,490)(9,514)(976)
Operating earnings1,181 1,057 124 11.7 %
Other, net15 19 (4)
Interest, net(82)(85)3 
Earnings before income tax1,114 991 123 12.4 %
Provision for income tax, net(184)(155)(29)
Net earnings$930 $836 $94 11.2 %
Earnings per share—basic$3.39 $3.07 $0.32 10.4 %
Basic weighted average shares outstanding274.4 272.6 
Earnings per share—diluted$3.35 $3.04 $0.31 10.2 %
Diluted weighted average shares outstanding277.9 274.7 





































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EXHIBIT B
CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS

 
 Nine Months EndedVariance
 September 29, 2024October 1, 2023$%
Revenue$34,378 $30,604 $3,774 12.3 %
Operating costs and expenses(31,005)(27,647)(3,358)
Operating earnings3,373 2,957 416 14.1 %
Other, net47 65 (18)
Interest, net(248)(265)17 
Earnings before income tax3,172 2,757 415 15.1 %
Provision for income tax, net(538)(447)(91)
Net earnings$2,634 $2,310 $324 14.0 %
Earnings per share—basic$9.61 $8.45 $1.16 13.7 %
Basic weighted average shares outstanding274.0 273.2 
Earnings per share—diluted$9.49 $8.39 $1.10 13.1 %
Diluted weighted average shares outstanding277.5 275.4 
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EXHIBIT C
REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)
DOLLARS IN MILLIONS

 
 Three Months EndedVariance
 September 29, 2024October 1, 2023$%
Revenue:
Aerospace$2,482 $2,032 $450 22.1 %
Marine Systems3,599 3,002 597 19.9 %
Combat Systems2,212 2,224 (12)(0.5)%
Technologies3,378 3,313 65 2.0 %
Total$11,671 $10,571 $1,100 10.4 %
Operating earnings:
Aerospace$305 $268 $37 13.8 %
Marine Systems258 211 47 22.3 %
Combat Systems325 300 25 8.3 %
Technologies326 315 11 3.5 %
Corporate(33)(37)4 10.8 %
Total$1,181 $1,057 $124 11.7 %
Operating margin:
Aerospace12.3 %13.2 %
Marine Systems7.2 %7.0 %
Combat Systems14.7 %13.5 %
Technologies9.7 %9.5 %
Total10.1 %10.0 %






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EXHIBIT D
REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)
DOLLARS IN MILLIONS

 
 Nine Months EndedVariance
 September 29, 2024October 1, 2023$%
Revenue:
Aerospace$7,506 $5,877 $1,629 27.7 %
Marine Systems10,383 9,053 1,330 14.7 %
Combat Systems6,602 5,904 698 11.8 %
Technologies9,887 9,770 117 1.2 %
Total$34,378 $30,604 $3,774 12.3 %
Operating earnings:
Aerospace$879 $733 $146 19.9 %
Marine Systems735 657 78 11.9 %
Combat Systems920 796 124 15.6 %
Technologies941 897 44 4.9 %
Corporate(102)(126)24 19.0 %
Total$3,373 $2,957 $416 14.1 %
Operating margin:
Aerospace11.7 %12.5 %
Marine Systems7.1 %7.3 %
Combat Systems13.9 %13.5 %
Technologies9.5 %9.2 %
Total9.8 %9.7 %



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EXHIBIT E
CONSOLIDATED BALANCE SHEET
DOLLARS IN MILLIONS
 
(Unaudited)
September 29, 2024December 31, 2023
ASSETS
Current assets:
Cash and equivalents$2,101 $1,913 
Accounts receivable3,165 3,004 
Unbilled receivables8,852 7,997 
Inventories10,141 8,578 
Other current assets1,484 2,123 
Total current assets25,743 23,615 
Noncurrent assets:
Property, plant and equipment, net6,324 6,198 
Intangible assets, net1,583 1,656 
Goodwill20,757 20,586 
Other assets2,905 2,755 
Total noncurrent assets 31,569 31,195 
Total assets$57,312 $54,810 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt$2,005 $507 
Accounts payable3,290 3,095 
Customer advances and deposits10,925 9,564 
Other current liabilities3,337 3,266 
Total current liabilities19,557 16,432 
Noncurrent liabilities:
Long-term debt7,262 8,754 
Other liabilities7,520 8,325 
Total noncurrent liabilities14,782 17,079 
Shareholders’ equity:
Common stock482 482 
Surplus3,997 3,760 
Retained earnings40,730 39,270 
Treasury stock(21,137)(21,054)
Accumulated other comprehensive loss(1,099)(1,159)
Total shareholders’ equity22,973 21,299 
Total liabilities and shareholders’ equity$57,312 $54,810 



 
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EXHIBIT F
CONSOLIDATED STATEMENT OF CASH FLOWS - (UNAUDITED)
DOLLARS IN MILLIONS
 

Nine Months Ended
 September 29, 2024October 1, 2023
Cash flows from operating activities—continuing operations:
Net earnings$2,634 $2,310 
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation of property, plant and equipment469 446 
Amortization of intangible and finance lease right-of-use assets177 195 
Equity-based compensation expense137 136 
Deferred income tax benefit(107)(158)
(Increase) decrease in assets, net of effects of business acquisitions:
Accounts receivable(172)(89)
Unbilled receivables(874)448 
Inventories(1,612)(1,904)
Increase (decrease) in liabilities, net of effects of business acquisitions:
Accounts payable193 (83)
Customer advances and deposits628 2,171 
Other, net479 42 
Net cash provided by operating activities1,952 3,514 
Cash flows from investing activities:
Capital expenditures(561)(600)
Other, net(27)(8)
Net cash used by investing activities(588)(608)
Cash flows from financing activities:
Dividends paid(1,140)(1,068)
Purchases of common stock (183)(434)
Repayment of fixed-rate notes— (1,250)
Other, net150 (40)
Net cash used by financing activities(1,173)(2,792)
Net cash used by discontinued operations(3)(4)
Net increase in cash and equivalents188 110 
Cash and equivalents at beginning of period1,913 1,242 
Cash and equivalents at end of period$2,101 $1,352 

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EXHIBIT G
ADDITIONAL FINANCIAL INFORMATION - (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
Other Financial Information:
 September 29, 2024December 31, 2023
Debt-to-equity (a)40.3 %43.5 %
Book value per share (b)$83.55 $77.85 
Shares outstanding274,968,619 273,599,948 
Third QuarterNine Months
2024202320242023
Income tax payments, net$173 $167 $125 $493 
Company-sponsored research and development (c)$137 $140 $421 $395 
Return on sales (d)8.0 %7.9 %7.7 %7.5 %
Non-GAAP Financial Measures:
Third QuarterNine Months
2024202320242023
Free cash flow:
Net cash provided by operating activities$1,416 $1,321 $1,952 $3,514 
Capital expenditures(201)(227)(561)(600)
Free cash flow (e)$1,215 $1,094 $1,391 $2,914 
 September 29, 2024December 31, 2023
Net debt:
Total debt$9,267 $9,261 
Less cash and equivalents2,101 1,913 
Net debt (f)
$7,166 $7,348 
(a)Debt-to-equity ratio is calculated as total debt divided by total equity as of the end of the period.

(b)Book value per share is calculated as total equity divided by total outstanding shares as of the end of the period.

(c)Includes independent research and development and Aerospace product-development costs.

(d)Return on sales is calculated as net earnings divided by revenue.

(e)We define free cash flow as net cash from operating activities less capital expenditures. We believe free cash flow is a useful measure for investors because it portrays our ability to generate cash from our businesses for purposes such as repaying debt, funding business acquisitions, repurchasing our common stock and paying dividends. We use free cash flow to assess the quality of our earnings and as a key performance measure in evaluating management.

(f)We define net debt as short- and long-term debt (total debt) less cash and equivalents. We believe net debt is a useful measure for investors because it reflects the borrowings that support our operations and capital deployment strategy. We use net debt as an important indicator of liquidity and financial position.

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EXHIBIT H
BACKLOG - (UNAUDITED)
DOLLARS IN MILLIONS
 
FundedUnfundedTotal
Backlog
Estimated
Potential
Contract Value*
Total
Estimated
Contract Value
Third Quarter 2024:
Aerospace$18,859 $937 $19,796 $254 $20,050 
Marine Systems29,008 11,463 40,471 9,578 50,049 
Combat Systems17,289 682 17,971 8,016 25,987 
Technologies9,794 4,602 14,396 27,093 41,489 
Total$74,950 $17,684 $92,634 $44,941 $137,575 
Second Quarter 2024:
Aerospace$19,126 $911 $20,037 $372 $20,409 
Marine Systems29,912 11,436 41,348 3,983 45,331 
Combat Systems16,003 673 16,676 5,816 22,492 
Technologies9,365 3,875 13,240 28,283 41,523 
Total$74,406 $16,895 $91,301 $38,454 $129,755 
Third Quarter 2023:
Aerospace$19,654 $405 $20,059 $785 $20,844 
Marine Systems30,445 17,277 47,722 3,113 50,835 
Combat Systems14,375 719 15,094 6,098 21,192 
Technologies9,833 2,852 12,685 27,302 39,987 
Total$74,307 $21,253 $95,560 $37,298 $132,858 

*The estimated potential contract value includes work awarded on unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options associated with existing firm contracts, including options and other agreements with existing customers to purchase new aircraft and aircraft services. We recognize options in backlog when the customer exercises the option and establishes a firm order. For IDIQ contracts, we evaluate the amount of funding we expect to receive and include this amount in our estimated potential contract value. The actual amount of funding received in the future may be higher or lower than our estimate of potential contract value.






 



 





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EXHIBIT H-1
BACKLOG - (UNAUDITED)
DOLLARS IN MILLIONS




chart-7809b3c6cf1a4ba68b4.jpg
Funded BacklogUnfunded Backlog










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EXHIBIT H-2
BACKLOG BY SEGMENT - (UNAUDITED)
DOLLARS IN MILLIONS

chart-09b9e9e352f4414ea41.jpgchart-832d6442a18c47f2afa.jpg
chart-6560de7c9a174d0fb94.jpgchart-ff879565ea18401f8e0.jpg
Funded BacklogUnfunded Backlog


















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EXHIBIT I
THIRD QUARTER 2024 SIGNIFICANT ORDERS - (UNAUDITED)
DOLLARS IN MILLIONS

We received the following significant contract awards during the third quarter of 2024:
Marine Systems:
•$780 from the U.S. Navy for the construction of an additional John Lewis-class (T-AO-205) fleet replenishment oiler. The contract including options for an additional seven T-AO-205 oilers has a maximum potential value of more than $6.7 billion.
•$1.5 billion from the Navy for long-lead materials for Block VI Virginia-class submarines.
•$100 from the Navy to provide engineering, technical, design and planning yard support services for operational strategic and attack submarines.
•$85 from the Navy for maintenance and modernization on the USS Chung-Hoon, an Arleigh Burke-class (DDG-51) guided missile destroyer.
•$80 for advanced nuclear plant studies (ANPS) in support of the Columbia-class submarine program for the Navy.
Combat Systems:
•$885 for various munitions and ordnance. These contracts have a maximum potential value of $1.7 billion.
•$465 for two contracts from the U.S. Army for the production of 155mm artillery projectile metal parts. These contracts have a maximum potential value of $1.7 billion.
•$395 from the Army for the production of 155mm propelling bag charges.
•$190 from the Army to produce Iron Fist Active Protection System kits.
•$180 from the Army to produce Stryker Sgt. Stout vehicles.
•$100 from the Army for long-lead materials to support the future retrofit of Stryker Sgt. Stout vehicles to a dual Stinger Vehicle Universal Launcher (SVUL) configuration.
Technologies:
•$840 for several key contracts for classified customers. These contracts have a maximum potential value of $1 billion.
•$605 for multiple awards from the U.S. Space Development Agency to develop and integrate ground systems for the low-Earth orbit satellite network.
•$105 from the U.S. Defense Information Systems Agency (DISA) to continue operating and maintaining Pentagon and regional government-furnished network infrastructures. The contract including options has a maximum potential value of $300.
•$185 from the U.S. Department of State (DoS) to manage its global technical security supply chain.
•$135 to provide equipment and tools to the National Oceanic Atmospheric Administration (NOAA) to augment its High-Performance Computing Systems.
•$130 from the National Geospatial-Intelligence Agency (NGA) to provide hybrid cloud services and information technology (IT) design, engineering, and operations and sustainment services.
•$120 from the DoS to provide overseas consular services to support visa application and issuance at U.S. embassies and consulates throughout the world under the Global Support Strategy (GSS) program.
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EXHIBIT J
AEROSPACE SUPPLEMENTAL DATA - (UNAUDITED)
DOLLARS IN MILLIONS

Third QuarterNine Months
 2024202320242023
Gulfstream Aircraft Deliveries (units):
Large-cabin aircraft24 22 76 57 
Mid-cabin aircraft4 5 13 15 
Total28 27 89 72 
Aerospace Book-to-Bill:
Orders*$2,365 $2,916 $7,464 $7,119 
Revenue2,482 2,032 7,506 5,877 
Book-to-Bill Ratio1.0x1.4x1.0x1.2x

*Does not include customer defaults, liquidated damages, cancellations, foreign exchange fluctuations and other backlog adjustments.











# # #

v3.24.3
Cover
Oct. 23, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 23, 2024
Entity Registrant Name GENERAL DYNAMICS CORPORATION
Entity Central Index Key 0000040533
Amendment Flag false
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 13-1673581
Entity Address, Address Line One 11011 Sunset Hills Road
Entity Address, City or Town Reston,
Entity Address, State or Province VA
Entity Address, Postal Zip Code 20190
City Area Code 703
Local Phone Number 876-3000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock
Trading Symbol GD
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity File Number 1-3671
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