General Dynamics (0IUC.L) Q3 2024 Earnings Report

General Dynamics reported Q3 2024 revenue of $11.671 billion, essentially flat versus the prior year (+0.03% YoY) with net income of $930 million and diluted earnings per share of $3.35. The quarter demonstrates the defensive earnings profile typical of a government-backed defense contractor, supported by steady operating cash flow and disciplined capital allocation. Although top-line growth was minimal, the company delivered meaningful free cash flow and a conservative balance sheet posture that underpins ongoing shareholder returns and optionality for strategic investments. On profitability, gross margins contracted to 15.56% (vs. prior year), yielding an operating margin of 10.12% and a net margin of 7.97%. YoY declines in gross profit (-5.56% YoY) and operating income (-8.31% YoY) contributed to a softer earnings trajectory, with earnings per share down about 7.9% YoY. Despite margin pressures, the firm generated robust operating cash flow of $1.416 billion and free cash flow of $1.215 billion, supporting a dividend payout of $390 million and a free cash flow per share of $4.43. Balance sheet strength remains solid: total assets of $57.3 billion and total equity of $22.97 billion, with cash and equivalents at $2.101 billion and a net debt position of about $7.49 billion. Leverage remains moderate (total debt to capitalization ~29.5%) with interest coverage around 14.4x, a positive indicator for stability in a volatile macro environment. Management did not publish formal forward guidance in the provided data, so near-term outlook hinges on defense budget trajectories, program wins, and execution efficiency. Investors should monitor program awards, efficiency improvements, and any updates to backlog visibility as potential catalysts for a healthier margin and cash flow trajectory.