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    General Dynamics Corp (GD)

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    General Dynamics is a global aerospace and defense company that provides a wide range of products and services across four main operating segments: Aerospace, Marine Systems, Combat Systems, and Technologies. The company is involved in business aviation, ship construction and repair, land combat vehicles, and technology services, catering primarily to defense markets. Notable achievements include significant revenue growth in their Gulfstream aircraft and Columbia-class submarine programs, as well as substantial new awards in IT services .

    1. Combat Systems - Provides land combat vehicles, weapons systems, and munitions, playing a crucial role in the company's strong performance in defense markets.
    2. Marine Systems - Engages in ship construction and repair, primarily for the U.S. Navy, with significant contributions from the Columbia-class submarine program.
    3. Technologies - Offers technology products and services, including IT services and mission systems, with notable achievements such as substantial new awards at GDIT.
    4. Aerospace - Focuses on business aviation, including the manufacturing and servicing of Gulfstream aircraft, which has seen significant growth.
    NamePositionStart DateShort Bio
    Jason W. AikenExecutive Vice President, Technologies and Chief Financial OfficerJan 2023Jason W. Aiken has been serving as the Executive Vice President, Technologies and Chief Financial Officer at GD since January 2023. He was previously the Senior Vice President and CFO from Jan 2014 to Dec 2022 .
    Christopher J. BradyVice President and President of General Dynamics Mission SystemsJan 2019Christopher J. Brady has been serving as the Vice President of GD and President of General Dynamics Mission Systems since January 2019. He was previously the Vice President of Engineering at GD Mission Systems .
    Mark L. BurnsVice President and President of Gulfstream Aerospace CorporationJul 2015Mark L. Burns has been the Vice President of the company and President of Gulfstream Aerospace Corporation since July 2015. He was previously the President of Product Support at Gulfstream Aerospace Corporation .
    Danny DeepVice President and President of General Dynamics Land SystemsApr 2020Danny Deep has been serving as the Vice President of the company and President of General Dynamics Land Systems since April 2020. He was previously the COO of General Dynamics Land Systems .
    Gregory S. GallopoulosSenior Vice President, General Counsel and SecretaryJan 2010Gregory S. Gallopoulos has been serving as the Senior Vice President, General Counsel, and Secretary of GD since January 2010. He was previously the Vice President and Deputy General Counsel .
    M. Amy GillilandSenior Vice President and President of General Dynamics Information TechnologySep 2017M. Amy Gilliland has been serving as Senior Vice President of GD since April 2015 and as President of General Dynamics Information Technology since September 2017 .
    Kevin M. GraneyVice President and President of Electric Boat CorporationOct 2019Kevin M. Graney has been serving as the Vice President of the company and President of Electric Boat Corporation since October 2019. He was previously the President of NASSCO .
    Kimberly A. KuryeaSenior Vice President, Human Resources and AdministrationApr 2017Kimberly A. Kuryea has been serving as the Senior Vice President, Human Resources and Administration at GD since April 2017. She was previously the Vice President and Controller .
    William A. MossVice President and ControllerApr 2017William A. Moss has been serving as the Vice President and Controller at GD since April 2017. He was previously the Staff Vice President of Internal Audit .
    Phebe N. NovakovicChairman and Chief Executive OfficerJan 2013Phebe N. Novakovic has been the Chairman and Chief Executive Officer of GD since January 2013. She was previously the President and Chief Operating Officer .
    Mark C. RoualetExecutive Vice President, Combat SystemsMar 2013Mark C. Roualet has been serving as the Executive Vice President, Combat Systems at GD since March 2013. He was previously the President of General Dynamics Land Systems .
    Robert E. SmithExecutive Vice President, Marine SystemsJul 2019Robert E. Smith has been serving as the Executive Vice President, Marine Systems at GD since July 2019. He was previously the President of Jet Aviation .
    1. Given the ongoing supply chain challenges impacting submarine schedules, what specific steps are you taking to mitigate these issues, and how do you plan to manage the potential delays in the Virginia class submarine program?
    2. With the elevated costs associated with the G700, including paint interiors and component replacements, how confident are you in achieving the anticipated 600 to 700 basis point margin improvement, and what is the revised timeline for this margin expansion?
    3. Considering the higher labor inflation and increased costs on boats already in production, what is the status of your negotiations with the Navy regarding contract adjustments or remedies, and how might this affect your profitability in the Marine segment?
    4. As the G800 enters production, how do you anticipate it will impact your margins in the Aerospace segment, especially in light of the ongoing supply chain issues and the delayed margin improvements from the G700?
    5. Given the strong demand for your Combat Systems products in Europe and the reliance on direct commercial sales from your European businesses, how are you addressing potential geopolitical risks and ensuring sustained growth in that region?
    Program DetailsProgram 1
    Approval DateN/A
    End Date/DurationN/A
    Total additional amountN/A
    Remaining authorization4 million shares
    Details154,314 shares purchased at an average price of $287.64 per share during Q3 2024
    YearAmount Due (in millions)Debt TypeInterest Rate (%)% of Total Debt
    2024500Fixed-rate notes2.3755.4% = (500 / 9267) * 100
    2025750Fixed-rate notes3.2508.1% = (750 / 9267) * 100
    2025750Fixed-rate notes3.5008.1% = (750 / 9267) * 100
    2026500Fixed-rate notes1.1505.4% = (500 / 9267) * 100
    2026500Fixed-rate notes2.1255.4% = (500 / 9267) * 100
    2027750Fixed-rate notes3.5008.1% = (750 / 9267) * 100
    2027500Fixed-rate notes2.6255.4% = (500 / 9267) * 100
    20281000Fixed-rate notes3.75010.8% = (1000 / 9267) * 100
    20301000Fixed-rate notes3.62510.8% = (1000 / 9267) * 100
    2031500Fixed-rate notes2.2505.4% = (500 / 9267) * 100
    2040750Fixed-rate notes4.2508.1% = (750 / 9267) * 100
    2041500Fixed-rate notes2.8505.4% = (500 / 9267) * 100
    2042500Fixed-rate notes3.6005.4% = (500 / 9267) * 100
    2050750Fixed-rate notes4.2508.1% = (750 / 9267) * 100

    Competitors mentioned in the company's latest 10K filing.

    • The Marine Systems segment has one primary competitor with which it partners on the Virginia-class submarine program and to which it subcontracts on the Columbia-class submarine program. For commercial and repair work, it competes with several additional U.S. shipyards .
    • The Combat Systems segment competes with a large number of U.S. and non-U.S. businesses .
    • The Technologies segment competes with many companies, from large government contracting and commercial technology companies to small niche competitors with specialized technologies or expertise .
    • The Aerospace segment has several competitors for each of its Gulfstream products .
    CustomerRelationshipSegmentDetails
    U.S. Department of Defense (DoD)
    Delivers defense products and services (e.g., nuclear-powered submarines, military vehicles, IT solutions)
    All
    $24.72 billion in 2023 (~58% of total revenue of $42.3 billion)
    NameStart DateEnd DateReason for Change
    KPMG LLP2002 PresentCurrent auditor

    Recent developments and announcements about GD.

    Financial Reporting

      Earnings Call

      ·
      7 days ago

      General Dynamics (GD) has released its fourth-quarter and full-year 2024 earnings call transcript, providing key insights into its financial performance and strategic outlook. Below is a summary of the main points:

      Financial Performance:

      • Quarterly Results:

        • Revenue: $13.338 billion, up 14.3% year-over-year.
        • Operating Earnings: $1.423 billion, up 10.5% year-over-year.
        • Net Earnings: $1.148 billion, up 14.2% year-over-year.
        • Earnings Per Share (EPS): $4.15, up 14% year-over-year.
      • Full-Year Results:

        • Revenue: $12.9% increase compared to 2023.
        • Operating Earnings: Up 13% year-over-year.
        • Net Earnings: Up 14.1% year-over-year.
        • EPS: Up 13.4% year-over-year.
      • Segment Highlights:

        • Aerospace:
          • Revenue: $3.7 billion for the quarter, up 36.4% year-over-year.
          • Operating Earnings: $585 million, up 30.3% year-over-year.
          • Full-year revenue: $11.35 billion, up 30.5% year-over-year.
          • Challenges included delays in G700 aircraft deliveries due to supply chain issues, which impacted margins.
        • Marine Systems:
          • Revenue: $4 billion for the quarter, up 16.2% year-over-year.
          • Full-year revenue: $14.3 billion, up 15.1% year-over-year.
          • Margins were impacted by supply chain delays and quality issues in submarine construction.
        • Technologies:
          • Revenue: $3.24 billion for the quarter, up 2.8% year-over-year.
          • Full-year revenue: $13.1 billion, up 1.6% year-over-year.
          • GDIT achieved its highest-ever revenue and earnings.

      Forward Guidance:

      • GD expects continued growth in Aerospace, driven by Gulfstream aircraft deliveries and improvements in supply chain management.
      • The company anticipates certification of the G800 in the first half of 2025, with deliveries planned for later in the year.
      • Marine Systems is expected to benefit from increased funding for Columbia and Virginia-class submarine programs, although supply chain challenges may persist.
      • Technologies segment is positioned for steady growth, supported by strong demand for IT services.

      Strategic Initiatives:

      • GD is focusing on improving productivity and reducing costs across all segments.
      • Investments in new manufacturing facilities and digital engineering are expected to enhance margins in Aerospace.
      • The company is working closely with suppliers to address quality and delivery issues, particularly in the Aerospace and Marine Systems segments.

      Analyst Questions and Management Responses:

      • Analysts inquired about the impact of supply chain challenges on margins and deliveries. Management acknowledged the issues but expressed confidence in their mitigation strategies.
      • Questions about the G700 and G800 programs highlighted the importance of learning from past challenges to improve future performance.
      • Analysts also discussed the impact of inflation and funding delays on Marine Systems, with management emphasizing ongoing efforts to stabilize the supply chain and manage costs.

      Market Conditions:

      • GD noted strong demand for combat vehicles and munitions, driven by both U.S. and international markets.
      • The company is optimistic about defense spending, citing increased threats and bipartisan support for key programs.

      Capital Deployment:

      • GD returned approximately 95% of its free cash flow to shareholders in 2024 through dividends and share repurchases.
      • The company plans to continue funding dividends and share buybacks while addressing upcoming debt maturities.

      This earnings call underscores GD's strong financial performance in 2024, despite challenges in the Aerospace and Marine Systems segments. The company remains focused on operational improvements and strategic investments to drive growth in 2025 and beyond.

      Earnings Report

      ·
      7 days ago

      General Dynamics (GD) Fourth-Quarter and Full-Year 2024 Earnings Results

      General Dynamics (GD) has released its fourth-quarter and full-year 2024 financial results as of January 29, 2025. Below are the key highlights:

      Fourth-Quarter 2024 Highlights

      • Revenue: $13.3 billion, a 14.3% increase compared to Q4 2023.
      • Net Earnings: $1.1 billion, up 14.2% year-over-year.
      • Diluted EPS: $4.15, a 14% increase from Q4 2023.
      • Operating Margin: 10.7%, slightly lower than 11.0% in Q4 2023.
      • Cash Flow: Net cash provided by operating activities was $2.2 billion, representing 188% of net earnings.

      Full-Year 2024 Highlights

      • Revenue: $47.7 billion, a 12.9% increase from 2023.
      • Net Earnings: $3.8 billion, up 14.1% year-over-year.
      • Diluted EPS: $13.63, a 13.4% increase from 2023.
      • Backlog: Ended the year with a $90.6 billion backlog, up 9.1% from 2023.

      Segment Performance

      Aerospace

      • Q4 Revenue: $3.74 billion, up 36.4% year-over-year.
      • Full-Year Revenue: $11.25 billion, up 30.5% from 2023.
      • Delivered 47 Gulfstream aircraft in Q4, including 42 large-cabin aircraft.

      Marine Systems

      • Q4 Revenue: $3.96 billion, up 16.2% year-over-year.
      • Full-Year Revenue: $14.34 billion, up 15.1% from 2023.

      Combat Systems

      • Q4 Revenue: $2.39 billion, up 1.3% year-over-year.
      • Full-Year Revenue: $8.99 billion, up 8.8% from 2023.

      Technologies

      • Q4 Revenue: $3.24 billion, up 2.8% year-over-year.
      • Full-Year Revenue: $13.13 billion, up 1.6% from 2023.

      Key Trends and Insights

      • Strong Order Activity: The company achieved a 1-to-1 book-to-bill ratio for the year, indicating strong demand across all segments.
      • Cash Flow Strength: Free cash flow for the year was $3.2 billion, reflecting robust operational efficiency.
      • Backlog Growth: The total estimated contract value, including potential contracts, reached $144 billion, up 9.1% year-over-year.

      Outlook

      General Dynamics has positioned itself for continued growth in 2025, with strong order activity and a solid backlog across its aerospace and defense segments. The company plans to provide further guidance during its earnings call.

      For more details, visit the General Dynamics investor relations page at www.gd.com.