- Revenue of $10 billion, up 4.3% year over year
- Net earnings of $902 million, up 4.9% year over year
- Diluted EPS of $3.26, up 6.2% year over year
RESTON, Va. – General Dynamics (NYSE: GD) today reported third-quarter 2022 net earnings of $902 million on revenue of $10 billion. Diluted earnings per share (EPS) were $3.26, a 6.2% increase from the year-ago quarter.
“We saw continued strong demand in the quarter, particularly in Aerospace, Combat Systems and Marine Systems,” said Phebe N. Novakovic, chairman and chief executive officer. “Our businesses delivered solid operating performance and cash flow even as they managed through the challenges of inflation and supply chain constraints.”
Net cash provided by operating activities in the quarter totaled $1.3 billion, or 142% of net earnings. After $255 million in capital expenditures, the company generated free cash flow of $1 billion, or 114% of net earnings.
Orders remained strong across the company with a consolidated book-to-bill ratio, defined as orders divided by revenue, of 1.1-to-1 for the quarter, with particular strength in the Aerospace and Combat Systems segments. In addition to company-wide backlog of $88.8 billion, estimated potential contract value, representing management’s estimate of additional value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $37 billion. Total estimated contract value, the sum of all backlog components, was $125.8 billion at the end of the quarter.
Aerospace backlog grew in the quarter to $19.1 billion, up 1.4% sequentially and 29.7% from the year-ago quarter.
Significant awards in the quarter for the three defense segments included $1.4 billion from the U.S. Navy for construction of an additional Expeditionary Sea Base auxiliary support ship and two additional John Lewis-class (T-AO-205) fleet replenishment oilers; a contract worth up to $1.1 billion to produce Abrams main battle tanks in the system enhancement package version 3 (SEPv3) configuration for Poland; an IDIQ contract with a maximum potential value of $910 million to provide information technology infrastructure and modernization support services for the U.S. Air Forces in Europe under the Europe-Wide Information Technology and Enterprise Network program; $700 million from the Navy for maintenance and modernization work on the USS Hartford, a Los Angeles-class submarine; $370 million for various munitions and ordnance; a Navy contract with a maximum potential value of $275 million to support development, production and installation of fire control systems for the Columbia- and Dreadnought-classes of ballistic missile submarines; and $315 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 third-quarter 2022 financial results conference call at 9 a.m. EDT on Wednesday, October 26, 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 November 2, 2022, at 866-813-9403 (international: +44 204-525-0658); passcode 273572. Charts furnished to investors and securities analysts in connection with General Dynamics’ announcement of its financial results are available at www.gd.com.