On this page of StockholderLetter.com we present the latest annual shareholder letter from GENERAL DYNAMICS CORP — ticker symbol GD. Reading current and past GD letters to shareholders can bring important insights into the investment thesis.

 •  3/28/2025 Letter Continued (Full PDF)
 •  3/24/2023 GD Stockholder Letter
 •  3/22/2024 GD Stockholder Letter
 •  More "Aerospace & Defense" Category Stockholder Letters
 •  GD Benford's Law Stock Score = 98

GD Shareholder/Stockholder Letter Transcript:

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A
2 024
GENERAL OVNJXMICS

DDear
e a r Fellow
F e l l o w Shareholder
Shareholder
2024 was
was aa year
year marked
marked by
by significant
significant growth
growth and
and strong
strong demand
demand across
across the
the business.
business. All
All four
four segments
segments
posted higher
higher revenue
revenue and
and operating
operating earnings,
earnings, resulting
resulting in
in double-digit
double-digit toptop- and
and bottom-line growth
growth for
for the
the
company. For
For the full year, revenue
revenue increased 12.9% to $477
$47.7 billion, and
and net earnings increased 14.1% to $3.8
billion, driving
driving $13.63 of diluted earnings per share, up 13.4% over
over the prior year.
year.
revenues increased
increased 30.5%
30.5% to $11.2
$11.2 billion,
billion, and
and operating earnings
earnings increased
increased 23.9%
23.9% to
to $1.5
$1.5 billion,
Aerospace revenues
driven by the certification and
and entry into service of the G700
G700 aircraft at the end
end of the first quarter.
quarter. Gulfstream
Gulfstream
delivered 30 G700s last year in the first nine
nine months after certification, more
more than any
any plane in its history over
over
supply chain challenges impacted both schedule and
and
the same time period. While we planned to deliver more, supply
cost. We believe these issues are largely behind us.
the G700
G700 now
now in
in the
the hands
hands of
of customers,
customers, we
we are
are seeing
seeing even
even better
better than
than expected
expected demonstrated
demonstrated
With the
performance. As
As we look ahead, the G800 is on track to receive certification and
and start deliveries later this year.
year.
In the same time frame, the last G650 will be completed and delivered, marking the end to this iconic program.
program.
introduce new models into service, the
the demand
demand for the portfolio of Gulfstream
Gulfstream aircraft
aircraft and
and
As we continue to introduce
aircraft services remains strong. Aerospace
Aerospace backlog ended the year at a robust $19.7 billion, with a 1-to-1
1-to-1 bookbookto-bill on aa significant increase in revenue.
revenue.
revenue was up 8.8% to $9 billion and
and operating earnings up by 11.2% to $1.3 billion. The
At Combat Systems, revenue
The
segment
demand
segment demonstrated
demonstrated strong operating performance, expanding margins year over
over year. We saw solid demand
and wheeled
wheeled combat
combat vehicles, and
and the
the newest
newest tracked
tracked platform,
platform, M10
M10 Booker,
Booker, received
received aa third
third
for our tracked and
low-rate initial production (LIRIP)
(LRIP) award.
award.
We continued to build out capacity for 155mm production for the Army customer and received over $1.2 billion
in munitions production awards. We also continue to see a strong opportunity pipeline for international demand
demand
both direct awards and
and Foreign
Foreign Military
Military Sales
Sales (FMS).
(FMS). Backlog
Backlog ended
ended the
the year
year at $17 billion,
billion, driven
driven by
by
through both
strong orders and aa book-to-bill of 1.3-to-1. Looking ahead, the current geopolitical threat environment supports
supports
aa strong demand
demand outlook for the segment's
segment   s products and services.
services.
Systems, revenue
revenue also
also continued its
its strong
strong growth trajectory, up
up 15.1%
15.1% to
to $14.3
$14.3 billion,
billion, following
following
At Marine Systems,
13%
growth in
in the prior year, as
as the Virginia-class and
and Columbia-class
Columbia-class submarine
submarine programs
programs continue to ramp.
13% growth
operating earnings
earnings grew
grew year
year over year,
year, results
results remain
remain challenged
challenged due
due to
to impacts
impacts from cost
cost inflation,
While operating
ongoing supply chain quality issues and delays.
delays.
Congress awarded an additional $14.7 billion of funding in a continuing resolution in December for the Columbiaclass program to continue work and for the Virginia-class program to address inflationary cost increases on
on the
next
three
boats,
workforce
development
and
specific
areas
of
supply
chain
productivity.
next three boats, workforce development and specific areas of supply chain productivity.
11

G E N E R A L
D Y N A M I C S

We are working closely with the customer in their efforts to stabilize the submarine industrial base and we see
can control
focused on controlling what we can
do. We remain focused
areas of improvement, but there is more to do.
some areas
over
help us to improve margins and drive earnings over
    improving our productivity and reducing costs. This will help
continues.
time as growth continues.
The outlook is solid as current backlog for the segment stands at $39.8 billion, and total estimated contract value
value
submarines
is just under $50 billion. On the horizon, the next block of Virginia-class (Block VI) and Columbia-class submarines
trajectory.
will further secure the long-term trajectory.
GDIT
billion. GDIT
$1.3 billion.
to $1.3
4.8% to
up 4.8%
earnings up
and earnings
billion, and
$13.1 billion,
to $13.1
1.6% to
up 1.6%
was up
revenue was
segment revenue
At Technologies, segment
Mission
at Mission
revenue at
in revenue
decline in
slight decline
offsetting aa slight
growth, offsetting
earnings growth,
and earnings
revenue and
of revenue
year of
fourth year
its fourth
delivered its
this
largely through this
be largely
business. They will be
lines of business.
growth lines
new growth
legacy work to new
as it transitions from legacy
Systems as
year.
transition this year.
billion in awards during the
over $14.7 billion
received over
and received
times book-to-bill and
1.1 times
achieved a 1.1
the businesses achieved
Together, the
in
technologies, in
innovative technologies,
in innovative
investments in
strategic investments
group   s strategic
The group's
year. The
prior year.
over the prior
year, aa 13.5%
increase over
13.5% increase
both
for both
awards for
significant awards
drove significant
example, drove
for example,
Systems, for
Mission Systems,
at Mission
Space at
in Space
and in
GDIT and
at GDIT
accelerators at
digital accelerators
improved
billion, supportive
$48.1 billion,
businesses. Total estimated contract value ended the year at a record of $48.1
supportive of an improved
growth outlook for the segment.
segment.
generated
company generated
1-to-1. The company
companywide book-to-bill of 1-to-1.
on aa companywide
year-end was $90.6 billion on
at year-end
In total, backlog at
of
95% of
free cash flow of $3.2 billion. We paid down outstanding debt by $500 million and returned $3 billion, or 95%
board of directors
the board
2025, the
March 2025,
In March
repurchase. In
share repurchase.
dividends and share
shareholders through dividends
free cash flow, to shareholders
year of
consecutive year
28th consecutive
the 28th
marks the
This marks
share. This
per share.
$1.50 per
of $1.50
rate of
quarterly rate
to aa quarterly
5.6% to
dividend by 5.6%
the dividend
raised the
increases.
dividend increases.
strong
through strong
backlog through
robust backlog
our robust
on our
executing on
to executing
are committed to
we are
2025, we
remainder of 2025,
the remainder
to the
look to
we look
As we
allocation
capital allocation
managing capital
balance sheet and managing
are focused on maintaining aa strong balance
performance. We are
operating performance.
value.
to create long-term value.
NOVAKOVIC
N. NOVAKOVIC
PHEBE N.
CEO
and CEO
Chairman and
2025
28, 2025
March 28,
2
0 2 4 AAnnnnuuaall RReeppoorrtt
2024

2
2

FFinancial
i n a n c i a l Highlights
Highlights
2022
2023 12024
| 2024
20221|2023
Re
venue
Revenue
2022
2023 1| 2024
20221|2023
2024
Earnings
O p e r a t Oi p enr a tgi n g Earnings
2023
$39,407
$42,272
$47,716
Operating
Earnings
Operating Earnings
4,211
4,245
4,796
Diluted EPS
EPS
12.19
12.02
13.63
Cash from
from Operating
Operating Activities
4,579
4,710
4,112
Cash Dividends Paid
Paid per Share
Share
4.97
5.22
5.58
amounts
Dollars in millions, except per-share amounts
Years Ended
Ended December
December 31
31
Years

G E N E R A L
To t a l Estimated
Estimated
Total
C
o n t r a c t Value*
Va l u e *
Contract
2022
Revenue
Revenue
33
2022
2023 2024
| 2024
20221| 2023
D Y N A M I C S
1 2 02024
21

$$1.5
1.5
BILLION
BILLION
o. C
Capital Expenditures
Expenditures and
and
Company-Sponsored R&D
10.1%
1
0

1

Operating Margin
  13.2%
13.2%
Return on
Invested Capital*
Capital*
.,    $15
$ 1..5
BILLION
BILLION
Dividends Paid
0 $$1.5
1.5
BILLION
BILLION
Share Repurchases
$WM
144
BILLION
BILLION
Estimated
Total Estimated
Contract Value*
for discussion of non-GAAP
non-GAAP measures.
measures.
** See
See 10-K
10-K for
2 0 2 4 AAnnnnuuaal l RRee ppoorrtt
2024

44



 3/28/2025 Letter Continued (Full PDF)