General Dynamics reported Q3 2025 revenue of $12.907 billion, up 10.6% year-over-year and down 1.0% quarter-over-quarter, with a net income of $1.059 billion and pro forma diluted earnings per share (EPS) of $3.89 (reported $3.94). The solid top-line growth reflects ongoing demand across the company’s diversified defense platforms, while profitability shows a mixed signal: gross profit was $1.331 billion for the quarter with a gross margin of 10.3%, and operating income stood at $1.331 billion with a margin of 10.3%, producing a net margin of 8.2%. The quarter’s results benefited from efficient operating leverage, yet gross profit declined materially on a year-over-year basis, indicating continued mix and input-cost pressures as GD navigates a multi-segment portfolio (Aerospace, Marine Systems, Combat Systems, Technologies). Cash generation remained robust, underpinning a conservative balance sheet and disciplined capital allocation.
The company’s liquidity and leverage metrics remain supportive: current ratio 1.40, quick ratio 0.87, cash-to-debt indicators strong at a debt ratio of 0.139 and debt-to-capitalization of 0.247, with interest coverage near 18x. Operating cash flow per share came in at $7.85, free cash flow per share at $7.06, and cash per share at $9.38, while the dividend payout ratio stood at 38.1%. The balance sheet appears resilient to near-term macro uncertainties, with a solid balance of cash, modest leverage, and ongoing capability to fund dividends and strategic acquisitions or R&D investments.
Management commentary for QQ3 2025 is not included in the provided dataset; as such, this analysis relies on reported results and standard sector dynamics. The forward guidance from GD for the coming quarters is not specified in the data provided herein, necessitating a cautious view on multi-quarter trajectory. Investors should monitor defense-budget developments, program awards in Navy and federal IT, and potential margin normalization as the mix shifts among Aerospace, Marine, Combat Systems, and Technologies.