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FALLS CHURCH, Va. – General Dynamics (NYSE: GD) today reported first-quarter 2018 net earnings of $799 million, a 4.7 percent increase over first-quarter 2017, on revenue of $7.5 billion. Diluted earnings per share from continuing operations were $2.65 compared to $2.48 in the year-ago quarter, a 6.9 percent increase.
“General Dynamics delivered solid first-quarter results, with growth in revenue, net earnings and EPS,” said Phebe Novakovic, chairman and chief executive officer of General Dynamics. “This is a strong start to 2018 and we remain confident in our outlook.”
Company-wide operating margin for the first quarter of 2018 was 13.4 percent, compared to 14.1 percent in first-quarter 2017. Consolidated operating margin was up 60 basis points, compared to 12.8 percent in fourth-quarter 2017.
The company repurchased 1.2 million of its outstanding shares in the first quarter. In addition, in March, the board of directors increased the company’s quarterly dividend to $0.93 per share, representing the 21st consecutive annual dividend increase. The 10.7 percent increase is consistent with increases over the past five years.
General Dynamics’ total backlog at the end of first-quarter 2018 was $62.1 billion. The estimated potential contract value, representing management’s estimate of value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $25.5 billion. Total potential contract value, the sum of all backlog components, was $87.6 billion at the end of the quarter.
There was order activity across the Gulfstream product portfolio and strong demand for defense products. Significant awards in the quarter include a contract with a total potential value of $1 billion to deliver Piranha 5 wheeled armored vehicles to the Romanian Armed Forces, $695 million from the U.S. Navy for long-lead materials for Block V Virginia-class submarines, $420 million from the Navy for a second John Lewis-class ship, $355 million from the U.S. Army for continued production and support of Stryker vehicles and $215 million from NASA for the Space Network Ground Segment Sustainment project to modernize NASA’s ground infrastructure systems for its satellite network.
About General Dynamics
Headquartered in Falls Church, Virginia, General Dynamics is a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; combat vehicles, weapons systems and munitions; C4ISR and IT solutions; and shipbuilding and ship repair. The company’s 2017 revenue was $31 billion. More information is available at www.generaldynamics.com.
Certain statements made in this press release, including any statements as to future results of operations and financial projections, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are based on management’s expectations, estimates, projections and assumptions. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors. Additional information regarding these factors is contained in the company’s filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. All forward-looking statements speak only as of the date they were made. The company does not undertake any obligation to update or publicly release any revisions to forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.
WEBCAST INFORMATION: General Dynamics will webcast its first-quarter 2018 financial results conference call at 9 a.m. EDT on Wednesday, April 25, 2018. The webcast will be a listen-only audio event, available at www.generaldynamics.com. An on-demand replay of the webcast will be available by 12 p.m. on April 25 and will continue for 12 months. To hear a recording of the conference call by telephone, please call 877-344-7529 (international: 1-412-317-0088); passcode 10119160. The phone replay will be available from April 25 through May 2, 2018.