- Net earnings of $730 million on revenue of $9.4 billion
- Diluted EPS of $2.61, up 5.2% year over year
- Cash from operating activities of $2 billion
- Highest Aerospace backlog in more than a decade
RESTON, Va. – General Dynamics (NYSE: GD) today reported first-quarter 2022 net earnings of $730 million on revenue of $9.4 billion. Diluted earnings per share (EPS) were $2.61, a 5.2% increase from the year-ago quarter.
“Aerospace backlog grew for the fifth consecutive quarter, driven by continued strong Gulfstream demand, while operating discipline and growth in aviation services increased the group’s margins,” said Phebe N. Novakovic, chairman and chief executive officer. “Our defense segments delivered solid performance on key programs across the portfolios.”
Net cash provided by operating activities in the quarter totaled $2 billion, or 270% of net earnings. The company invested $141 million in capital expenditures, paid $330 million in dividends, and used $294 million to repurchase shares, ending the quarter with $2.9 billion in cash and equivalents on hand.
Orders remained strong across the company with a consolidated book-to-bill ratio, defined as orders divided by revenue, of 1-to-1 for the quarter. In addition to company-wide backlog of $87.2 billion, estimated potential contract value, representing management’s estimate of additional value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $41.8 billion. Total estimated contract value, the sum of all backlog components, was $129 billion.
Aerospace backlog grew $1.3 billion in the quarter to $17.6 billion, up 8.1%.
Significant awards in the quarter for the three defense segments included a contract with a maximum potential value of $4.5 billion over 10 years from the National Geospatial-Intelligence Agency to provide hybrid cloud services and information technology design, engineering, and operations and sustainment services; a contract with a maximum potential value of $660 million from the Environmental Protection Agency for managed application, information, networking, enterprise and security services; $340 million from the U.S. Army to produce Stryker maneuver short-range air defense (M-SHORAD) vehicles; $325 million from the Army to upgrade Abrams main battle tanks; $260 million from the U.S. Navy to provide maintenance and repair services for an Arleigh Burke-class guided-missile destroyer and a Wasp-class amphibious assault ship; $235 million from the Army to provide spare parts, inventory management and support services for the Stryker wheeled combat vehicle program; $230 million to produce Piranha armored combat vehicles for Switzerland; and $260 million for several key classified contracts.
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 $38.5 billion in revenue in 2021. More information is available at www.gd.com.
Certain statements in this press release, including any statements about the company’s future operational and financial performance, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Words such as “expects,” “anticipates,” “plans,” “believes,” “forecasts,” “scheduled,” “outlook,” “estimates,” “should” and variations of these words and similar expressions are intended to identify forward-looking statements. 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 its Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K. 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 revisions to any 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 2022 financial results conference call at 9 a.m. EDT on Wednesday, April 27, 2022. 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 one hour after the end of the call and end on May 4, 2022, at 866-813-9403 (international: +44 204-525-0658); passcode 488214. Charts furnished to investors and securities analysts in connection with General Dynamics’ announcement of its financial results are available at www.gd.com.