General Dynamics Corp.

General Dynamics Corp.

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Market Cap$103.97B
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Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
General Dynamics Corp.General Dynamics Corp.23.11.61%17%1.90.8

Earnings Call Q2 2026

July 29, 2026 - AI Summary

Strong results + margin expansion (good): - Q2’26 earnings: $4.24 EPS on $14.1B revenue; operating earnings $1.460B, net earnings $1.160B. - YoY: revenue +8.1%, operating earnings ~+12%, net earnings +14.4%, EPS +13.4%. - Operating margin: 10.4%, up +40 bps YoY (with revenue growth driving earnings). - Sequential: revenue +4.5%, operating earnings +2.8%, EPS +3.4%. - Beat consensus: company says it beat sell-side by $0.28 (more revenue + operating margin than expected).
Backlog and orders remain very strong (opportunity): - Q2 orders: just under $20B, book-to-bill 1.4x; all 4 segments >1.0x. - Aerospace: book-to-bill 1.5x; record backlog $136.5B (+32% YoY). - Defense/Combat: book-to-bill 1.4–2.1x within Combat Systems (notably 2.1x for Combat Systems’ segment, driven by large armored vehicle and munitions demand). - Aerospace demand described as very active across U.S. and Asia, with some cautious concern in the Middle East but activity still in the pipeline.
Cash generation unusually strong; guidance shifts modestly (good but with timing factors): - Operating cash flow: $1.9B in Q2; $4B+ in first half (combined Q1 + Q2). - Operating working capital improved: operating working capital down over $1B from end of 2025. - Free cash flow (FCF): $1.6B in Q2; $3.6B in H1. - Cash conversion: Q2 142%, H1 >150%. - Updated full-year expectation: FCF conversion ~105% of net income (i.e., still strong, but second-half lighter). - Key reasons for lighter H2: higher capex, plus ~$500M pension contribution, cash taxes weighted to H2 (> $500M payments), and working down advance payments at European Land Systems in H2. - Capital deployment: $430M dividends in the quarter; ~$100M buybacks (to cover dilution); $500M notes repaid, with another $500M due in August expected to be repaid with cash.

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$415.10

Target Price by Analysts

5.5% upsideGeneral Dynamics Target Price DetailsTarget Price
$538.60

Current Fair Value

36.9% upside

Undervalued by 36.9% based on the discounted cash flow analysis.

Share Statistics

Market cap$103.97 Billion
Enterprise Value$120.15 Billion
Dividend Yield$6.18 (1.61%)
Earnings per Share$15.64
Beta0.33
Outstanding Shares270,200,000

Return

Return on Equity16.73%ROE
Return on Assets7.46%
Return on Invested Capital13.46%

Valuation & Multiples

P/E Ratio23.11P/E Ratio
PEG160.49PEG
Price to Sales1.94Price to Sales
Price to Book Ratio3.97Price to Book Ratio
Enterprise Value to Revenue2.19
Enterprise Value to EBIT21.56
Enterprise Value to Net Income26
Total Debt to Enterprise0.17
Debt to Equity0.76Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
July 29, 2026
EPS Estimate
$3.96
Average shareholder expectation
Revenue Estimate
$13.52 B
Average shareholder expectation

Next Earnings Call

Expected Date
October 23, 2026
EPS Estimate
$4.11
Average shareholder expectation
Revenue Estimate
$13.68 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.6165 20.00%
Total Calls1,108,277 13.08%
Total Puts683,303 14.62%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %87.60% 0.91%
Total Invested$83.04B 3.43%
Investors Holding2,230 33.00%

ESG Score

No data

About General Dynamics Corp.

CEO: Phebe Novakovic