General Dynamics Books $98.8 Billion of Orders on Submarine Deals, Backlog Hits $220.3 Billion
General Dynamics booked $98.8 billion of new orders in the third quarter, driven by giant submarine contracts, pushing its backlog to a record $220.3 billion, the defense contractor said Friday.
Revenue rose 12.9% from a year earlier to $14.6 billion, and diluted earnings per share climbed 15.7% to $4.49, according to the earnings release filed with an 8-K. Operating earnings rose 14.7% to $1.5 billion, and the operating margin widened 20 basis points to 10.5%.
A 6.8-to-1 book-to-bill
The defense segments took in $93.8 billion of orders, led by Marine Systems contracts for Virginia-class and Columbia-class submarines. The Aerospace segment, home of Gulfstream business jets, added $5 billion.
That put the defense book-to-bill ratio, orders divided by revenue, at 8.5-to-1, while Aerospace came in at 1.4-to-1. Company-wide, the ratio was 6.8-to-1.
Backlog ended the quarter at $220.3 billion. Adding $50.4 billion of potential value in unfunded contracts and unexercised options, General Dynamics put its total estimated contract value at $270.7 billion.
Cash and debt
Operating cash flow was $1.7 billion, or 139% of net earnings. The company paid $429 million in dividends, spent $481 million on capital projects and cut total debt by $500 million. It ended the quarter with $7 billion of debt and $4.4 billion in cash.
"Our business had exceptional third quarter results, with revenue growth across all four segments, robust bookings and solid operational performance," Chairman and CEO Phebe Novakovic said in the release.
Why it matters
Submarine work for the Navy is the biggest driver of General Dynamics' long-term visibility. Orders on this scale lock in shipyard work for years, and the company said every one of its four segments grew revenue in the quarter.
By the numbers
- $14.6 billion: third-quarter revenue, up 12.9%
- $4.49: diluted EPS, up 15.7%
- $98.8 billion: orders in the quarter
- 6.8-to-1: company-wide book-to-bill
- $220.3 billion: backlog
- $270.7 billion: total estimated contract value
Sources
- General Dynamics Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 30, 2026 (accession 0000040533-26-000036)
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