General Dynamics (GD) Q2 FY26 earnings call

Earnings call· Jun 2026 (Q2 FY26)· Industrials· Jul 29, 2026

Source: earnings call transcript

General Dynamics delivered a superb second quarter, exceeding expectations across key financial metrics, driven by robust performance in Aerospace and Marine Systems. The company achieved record backlog and strong cash generation, enabling strategic investments and pension contributions. While some segments saw margin pressure due to mix, the overall outlook remains positive with increased full-year EPS guidance and continued focus on operational improvements and strategic growth areas like AI and international defense.

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GD operating KPIs by quarter

GD operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Mar 2025 Q1 FY25	Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	This call Jun 2026 Q2 FY26	Change vs prior quarter
Orders	$10B+ We had a solid quarter with over $10 billion of orders. Source: earnings call transcript	—	$26B+ We received over $26 billion of orders achieving an overall book-to-bill ratio of 2:1 even as revenue grew by over 10% from the year ago quarter. Source: earnings call transcript	—	—
Book-to-bill ratio Technologies	1.1 ratio Order activity was particularly strong in the Technologies group with a book-to-bill ratio of 1.1:1. Source: earnings call transcript	0.9 ratio Total orders for the group reached $15.9 billion, resulting in a book-to-bill of 0.9:1 for the quarter and 1.2x for the year. Source: earnings call transcript	1.3 ratio The group's order activity was also encouraging with a book-to-bill of 1.3x for the quarter and 1.2x for the trailing 12 months. Source: earnings call transcript	—	+44.4%
Book-to-bill ratio	<1 ratio Our overall book-to-bill ratio for the company was less than 1x due in part to the 14% increase in revenue from last year. Source: earnings call transcript	—	2 ratio We received over $26 billion of orders achieving an overall book-to-bill ratio of 2:1 even as revenue grew by over 10% from the year ago quarter. Source: earnings call transcript	1.4 ratio We had another strong quarter with just shy of $20 billion of orders, yielding an overall book-to-bill ratio of 1.4:1 for the company. Source: earnings call transcript	-30%
Backlog	$89B This resulted in total backlog being slightly down from year-end to $89 billion at quarter end. Source: earnings call transcript	$118B The robust demand across our portfolio resulted in finishing the year with a record total backlog of $118 billion, an astonishing 30% increase over last year. Source: earnings call transcript	$131B The robust demand across our portfolio resulted in total backlog of $131 billion, an impressive 48% increase over last year and 11% higher than just a quarter ago. Source: earnings call transcript	$136.5B We ended the quarter with a record level of backlog of $136.5 billion, up 32% from a year ago. Source: earnings call transcript	+4.2%
Total estimated contract value	$141B+ Our total estimated contract value, which includes options and IDIQ contracts, ended the quarter at a little over $141 billion. Source: earnings call transcript	$179B Total estimated contract value, which includes options and IDIQ contracts, ended the year also at a record level of $179 billion, a 24% increase from last year. Source: earnings call transcript	$188B Total estimated contract value, which includes options and IDIQ contracts, ended the quarter at another record level of $188 billion, a 33% increase from last year. Source: earnings call transcript	$186.9B Our total estimated contract value, which includes options and IDIQ contracts ended the quarter at $186.9 billion. Source: earnings call transcript	-0.6%
Aircraft deliveries Aerospace	36 The 36 deliveries in the quarter are about as planned. Source: earnings call transcript	—	38 The 38 deliveries in the quarter are exactly as planned. Source: earnings call transcript	41 The 41 deliveries in the quarter are somewhat more than planned. Source: earnings call transcript	+7.9%
Book-to-bill ratio Aerospace	0.8 ratio We had a 0.8x book-to-bill in the quarter even as aircraft deliveries increased by 50%. Source: earnings call transcript	1.3 ratio Aerospace had a book-to-bill of 1.3x in the quarter and Gulfstream alone had an aircraft book-to-bill of 1.4x, even as deliveries increased significantly in the quarter. Source: earnings call transcript	1.2 ratio We had a 1.2 book-to-bill in the quarter with 17 more airplane orders than the year ago quarter. Source: earnings call transcript	1.5 ratio In aerospace, our dollar-based book-to-bill was 1.5x. Source: earnings call transcript	+25%
Backlog Combat Systems	$16.9B Orders in the quarter drove backlog to $16.9 billion, up $1.3 billion from this time a year ago. Source: earnings call transcript	$27.2B This all rolls up to a total backlog of $27.2 billion and total estimated contract value of almost $42 billion. Source: earnings call transcript	—	—	+60.9%
Pipeline of qualified opportunities Technologies	$120B Their pipeline of qualified opportunities remain strong at $120 billion, and their win and capture rates in the 80% range reflect the compelling value they're providing their customers. Source: earnings call transcript	<$120B This, combined with a robust order pipeline of close to $120 billion of qualified opportunities, certainly presents a healthy market picture as we look forward. Source: earnings call transcript	—	—	—
Book-to-bill ratio Combat Systems	—	4.3 ratio Combat saw robust order intake for the fourth quarter, resulting in book-to-bill of 4.3:1. Source: earnings call transcript	0.9 ratio We also experienced good order performance at 0.9:1 book-to-bill given the third and fourth quarters of 2025 book-to-bill of 2x and 4.3x, respectively. Source: earnings call transcript	2.1 ratio In the Defense segment, book-to-bill was 1.4x led by the Combat Systems segment at 2.1x, which received several large contracts, including the production of new armored combat support vehicles ACS for the Canadian Armed Forces. Source: earnings call transcript	+133.3%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

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