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2025 Annual Report
Dear Fellow Shareholder Your company experienced another year of significant growth and continued strong demand across both its aerospace and defense portfolios. We had a record year of revenue, earnings and backlog. For the full year, revenue increased 10.1% to $52.6 billion and net earnings increased 11.3% to $4.2 billion. Diluted earnings per share increased 13.4% over the prior year to $15.45. Backlog at year end was $118 billion on a company-wide book-to-bill of 1.5-to-1. Aerospace revenue increased 16.5% to $13.1 billion and operating earnings increased 19.3% to $1.7 billion, double-digit growth for the second year in a row. In addition, orders of $15.5 billion of aircraft and services resulted in an almost 11% increase in backlog to $21.8 billion. These outstanding results were supported by the entry into service of the G800 during the third quarter and continued successful delivery of the G700 to customers. In total, we delivered 158 aircraft, 22 more than the prior year. The last G650, one of the most successful airplanes in business aviation history, was delivered in the second quarter of 2025. It was replaced by the G800 in the third quarter. The G800 had a very successful entry into service with deliveries meeting anticipated targets. Cost pressures from our supply chain and tariffs had an impact on operating margins. Despite those pressures, we achieved very nice operating leverage for the year. We are focused on mitigation strategies and managing our costs, which drove margin expansion in 2025 and will lead us to continued margin expansion in 2026. Also, this year, we continued to make progress on the certification of the G300, the new super-midsize aircraft that will ultimately replace the G280. First flight for the G300 was completed in December. As you may recall, we intentionally slowed the G400 development as we grappled with managing the growth discussed above. These two airplanes are the final steps in our long-term strategy to develop an all-new, next-generation family of aircraft with a Gulfstream for every mission. At Combat Systems, revenue grew 2.8% to $9.2 billion, and we demonstrated strong operating performance with higher margins for the second year in a row. While we experienced some headwinds from the cancellation of one of our U.S. Army programs, our platforms continued to receive strong Army support, particularly the development of the next-generation tank. We also continue to see strong demand for our munitions products and are supporting that demand by ramping up capacity. Internationally, the increased threat environment has resulted in higher defense spending, generating a strong opportunity pipeline. We have a long-standing presence in Europe through our European subsidiaries. These businesses have a broad product portfolio of wheeled and tracked vehicles, mobile bridges and repair services. These products are designed and built in Europe for that market, which allows us to convert increased demand into awards, notably over $8.7 billion in the fourth quarter alone. Overall, backlog for the group ended the year at $27.2 billion, driven by record orders of $19.5 billion and resulting in a bookto-bill of 2.1-to-1, providing long-term visibility into the growth ahead. Looking forward, 2026 will be a year dominated by engineering work in Europe as we prepare to convert this backlog into production for 2027. At Marine Systems, the home of our three shipyards and two repair yards, we had double-digit revenue growth for the third consecutive year, up 16.6% to $16.7 billion, following 15.1% in 2024 and 12.9% in 2023. This growth has been led by the Virginia-class and Columbia-class submarine programs. Operating earnings increased nearly 26% as we witnessed some stabilization in the supply chain and improved productivity at each of our shipyards. We have made significant investments over the last several years and will continue to invest in areas that will increase output, accelerate production and improve ship-over-ship execution. 1
The current administration has strongly supported shipbuilding with increased funding and awards in 2025 for key programs, including two Block V Virginia-class submarines, one Flight III Arleigh Burke-class destroyer and two John Lewis-class oilers. These awards contributed to orders of $29.2 billion and a year-end backlog of $52.3 billion. Looking ahead, we anticipate awards for the next block of Virginia-class (Block VI) and Columbia-class (Build II) submarines in the foreseeable future, securing long-term growth for the segment well beyond the planning horizon. We continue to work closely with the Navy and our supply chain to stabilize the submarine industrial base. There has been progress, but there is more to do. We remain laser-focused on execution and controlling costs to drive profitable growth. At Technologies, revenue was up 2.6% to $13.5 billion with both businesses contributing to the growth. This is despite a full-year continuing resolution, DOGE scrutiny, and a prolonged government shutdown in the fourth quarter. Our ability to meet the needs of customers across the government has enabled much of this growth. We provide advanced technology that allows them to fulfill their missions. The group s strategy and innovative solutions proved to be the right mix. As a result, as with our other segments, orders and backlog increased nicely over the prior year. Together, the businesses achieved a 1.2 times book-to-bill and received $15.9 billion in awards, a record year. Total backlog ended the year at $16.7 billion, up 18.1% from the prior year. Total estimated contract value rose to just under $50 billion, all supporting an improved growth outlook for the segment. Overall, your company generated ample cash for the year. Free cash flow was just under $4 billion, a conversion rate of 94% of net earnings. We did this while increasing investment in our businesses. Capital expenditures were up 26.7% over the prior year. For 2026, we expect to increase our investment again to support the future growth inherent in our backlog. Even with higher capital expenditures, we anticipate generating free cash flow at 100% of net earnings through working capital management, particularly the reduction of inventory at our business units. Our net debt position was down $1.4 billion from the prior year, and we returned $2.2 billion to shareholders. In March 2026, the board of directors declared a quarterly dividend of $1.59 per share. This marks the 29th consecutive year of dividend increases for our fellow shareholders. As I reflect on the 13 years of this management team s stewardship of your company, we have seen the revenue of your company increase from $31 billion at the end of 2012 to $52.6 billion for 2025. Most of that growth has been organic. More impressive, net earnings have increased from $2.3 billion (adjusted)* to $4.2 billion for the same period. The equity markets have responded to this performance. The share price was $69.27 at the end of 2012, and we ended 2025 at $336.66 per share. Our long-term shareholders have done very well. At year end, your company had one of the strongest balance sheets in the aerospace and defense industry with an A/A2 credit rating. We remain firm in our belief that your company is built for the creation of long-term enduring value. *GAAP net earnings were -$332 million from a series of write-offs across the company. 2025 Annual Report PHEBE N. NOVAKOVIC Chairman and CEO March 23, 2026 2
Financial Highlights 6 60 $5.4 $52.6 BILLION 50 47.7 200 $179 BILLION 5 4.8 150 4.2 42.3 40 4 30 3 20 2 BILLION 144 132 100 50 10 1 0 0 0 2023 | 2024 | 2025 2023 | 2024 | 2025 2023 | 2024 | 2025 Re v e n u e Operating Earnings To t a l E st i m a t e d C o n t r a c t Va l u e* 2023 2024 2025 $42,272 $47,716 $52,550 Operating Earnings 4,245 4,796 5,356 Diluted EPS 12.02 13.63 15.45 Cash from Operating Activities 4,710 4,112 5,120 Revenue Dollars in millions, except per-share amounts Years ended December 31 3
14.2% Return on Invested Capital* $ 1.6 Dividends Paid 1.5x $179 BILLION Operating Margin Capital Expenditures and Company-Sponsored R&D BILLION 10. 2% BILLION $ 1.6 Total Estimated Contract Value* Book to Bill * See 10-K for discussion of non-GAAP measures. 2025 Annual Report 4
 • shareholder letter icon 3/27/2026 Letter Continued (Full PDF)
 • stockholder letter icon 3/24/2023 GD Stockholder Letter
 • stockholder letter icon 3/22/2024 GD Stockholder Letter
 • stockholder letter icon 3/28/2025 GD Stockholder Letter
 • stockholder letter icon More "Aerospace & Defense" Category Stockholder Letters
 • Benford's Law Stocks icon GD Benford's Law Stock Score = 97


GD Shareholder/Stockholder Letter Transcript:

2025
Annual Report

Dear Fellow Shareholder
Your company experienced another year of significant growth and continued strong demand across both its aerospace and
defense portfolios. We had a record year of revenue, earnings and backlog. For the full year, revenue increased 10.1% to
$52.6 billion and net earnings increased 11.3% to $4.2 billion. Diluted earnings per share increased 13.4% over the prior
year to $15.45. Backlog at year end was $118 billion on a company-wide book-to-bill of 1.5-to-1.
Aerospace revenue increased 16.5% to $13.1 billion and operating earnings increased 19.3% to $1.7 billion, double-digit
growth for the second year in a row. In addition, orders of $15.5 billion of aircraft and services resulted in an almost 11%
increase in backlog to $21.8 billion. These outstanding results were supported by the entry into service of the G800 during
the third quarter and continued successful delivery of the G700 to customers.
In total, we delivered 158 aircraft, 22 more than the prior year. The last G650, one of the most successful airplanes in
business aviation history, was delivered in the second quarter of 2025. It was replaced by the G800 in the third quarter.
The G800 had a very successful entry into service with deliveries meeting anticipated targets.
Cost pressures from our supply chain and tariffs had an impact on operating margins. Despite those pressures, we
achieved very nice operating leverage for the year. We are focused on mitigation strategies and managing our costs, which
drove margin expansion in 2025 and will lead us to continued margin expansion in 2026.
Also, this year, we continued to make progress on the certification of the G300, the new super-midsize aircraft that will
ultimately replace the G280. First flight for the G300 was completed in December. As you may recall, we intentionally
slowed the G400 development as we grappled with managing the growth discussed above. These two airplanes are
the final steps in our long-term strategy to develop an all-new, next-generation family of aircraft with a Gulfstream for
every mission.
At Combat Systems, revenue grew 2.8% to $9.2 billion, and we demonstrated strong operating performance with higher
margins for the second year in a row. While we experienced some headwinds from the cancellation of one of our U.S. Army
programs, our platforms continued to receive strong Army support, particularly the development of the next-generation
tank. We also continue to see strong demand for our munitions products and are supporting that demand by ramping
up capacity.
Internationally, the increased threat environment has resulted in higher defense spending, generating a strong opportunity
pipeline. We have a long-standing presence in Europe through our European subsidiaries. These businesses have a broad
product portfolio of wheeled and tracked vehicles, mobile bridges and repair services. These products are designed and
built in Europe for that market, which allows us to convert increased demand into awards, notably over $8.7 billion in the
fourth quarter alone.
Overall, backlog for the group ended the year at $27.2 billion, driven by record orders of $19.5 billion and resulting in a bookto-bill of 2.1-to-1, providing long-term visibility into the growth ahead. Looking forward, 2026 will be a year dominated by
engineering work in Europe as we prepare to convert this backlog into production for 2027.
At Marine Systems, the home of our three shipyards and two repair yards, we had double-digit revenue growth for the third
consecutive year, up 16.6% to $16.7 billion, following 15.1% in 2024 and 12.9% in 2023. This growth has been led by the
Virginia-class and Columbia-class submarine programs. Operating earnings increased nearly 26% as we witnessed some
stabilization in the supply chain and improved productivity at each of our shipyards. We have made significant investments
over the last several years and will continue to invest in areas that will increase output, accelerate production and improve
ship-over-ship execution.
1

The current administration has strongly supported shipbuilding with increased funding and awards in 2025 for key programs,
including two Block V Virginia-class submarines, one Flight III Arleigh Burke-class destroyer and two John Lewis-class
oilers. These awards contributed to orders of $29.2 billion and a year-end backlog of $52.3 billion.
Looking ahead, we anticipate awards for the next block of Virginia-class (Block VI) and Columbia-class (Build II) submarines
in the foreseeable future, securing long-term growth for the segment well beyond the planning horizon.
We continue to work closely with the Navy and our supply chain to stabilize the submarine industrial base. There has been
progress, but there is more to do. We remain laser-focused on execution and controlling costs to drive profitable growth.
At Technologies, revenue was up 2.6% to $13.5 billion with both businesses contributing to the growth. This is despite a
full-year continuing resolution, DOGE scrutiny, and a prolonged government shutdown in the fourth quarter.
Our ability to meet the needs of customers across the government has enabled much of this growth. We provide advanced
technology that allows them to fulfill their missions. The group   s strategy and innovative solutions proved to be the right mix.
As a result, as with our other segments, orders and backlog increased nicely over the prior year. Together, the businesses
achieved a 1.2 times book-to-bill and received $15.9 billion in awards, a record year. Total backlog ended the year at
$16.7 billion, up 18.1% from the prior year. Total estimated contract value rose to just under $50 billion, all supporting an
improved growth outlook for the segment.
Overall, your company generated ample cash for the year. Free cash flow was just under $4 billion, a conversion rate of
94% of net earnings. We did this while increasing investment in our businesses. Capital expenditures were up 26.7% over
the prior year. For 2026, we expect to increase our investment again to support the future growth inherent in our backlog.
Even with higher capital expenditures, we anticipate generating free cash flow at 100% of net earnings through working
capital management, particularly the reduction of inventory at our business units.
Our net debt position was down $1.4 billion from the prior year, and we returned $2.2 billion to shareholders. In March
2026, the board of directors declared a quarterly dividend of $1.59 per share. This marks the 29th consecutive year of
dividend increases for our fellow shareholders.
As I reflect on the 13 years of this management team   s stewardship of your company, we have seen the revenue of your
company increase from $31 billion at the end of 2012 to $52.6 billion for 2025. Most of that growth has been organic. More
impressive, net earnings have increased from $2.3 billion (adjusted)* to $4.2 billion for the same period.
The equity markets have responded to this performance. The share price was $69.27 at the end of 2012, and we ended
2025 at $336.66 per share. Our long-term shareholders have done very well.
At year end, your company had one of the strongest balance sheets in the aerospace and defense industry with an A/A2
credit rating. We remain firm in our belief that your company is built for the creation of long-term enduring value.
*GAAP net earnings were -$332 million from a series of write-offs across the company.
2025 Annual Report
PHEBE N. NOVAKOVIC
Chairman and CEO
March 23, 2026
2

Financial Highlights
6
60
$5.4
$52.6
BILLION
50
47.7
200
$179
BILLION
5
4.8
150
4.2
42.3
40
4
30
3
20
2
BILLION
144
132
100
50
10
1
0
0
0
2023 | 2024 | 2025
2023 | 2024 | 2025
2023 | 2024 | 2025
Re v e n u e
Operating Earnings
To t a l E st i m a t e d
C o n t r a c t Va l u e*
2023
2024
2025
$42,272
$47,716
$52,550
Operating Earnings
4,245
4,796
5,356
Diluted EPS
12.02
13.63
15.45
Cash from Operating Activities
4,710
4,112
5,120
Revenue
Dollars in millions, except per-share amounts
Years ended December 31
3

14.2%
Return on
Invested Capital*
$ 1.6
Dividends Paid
1.5x
$179
BILLION
Operating Margin
Capital Expenditures and
Company-Sponsored R&D
BILLION
10. 2%
BILLION
$ 1.6
Total Estimated
Contract Value*
Book to Bill
* See 10-K for discussion of non-GAAP measures.
2025 Annual Report
4


shareholder letter icon 3/27/2026 Letter Continued (Full PDF)
 

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