The company is organized into four business groups: Aerospace, Marine Systems, Combat Systems and Technologies, with a balanced business model giving each unit flexibility to stay agile and maintain customer understanding. The company saw growth in revenue and earnings in all four segments coupled with 30% growth in company-wide backlog in 2025.
Cyborg Score Rationale
General Dynamics exhibits a current ratio of 1.4 and a debt-to-equity ratio of 0.4 with an Altman Z-Score of 4.2, suggesting strong financial health. The company has demonstrated consistent revenue growth with a three-year growth rate of 8%. However, valuation metrics reveal that the P/E ratio is close to its 10-year high, while the P/S ratio and P/B ratio are also near historical highs.
Top Insights
General Dynamics projects fiscal year 2026 revenue between $54.3 billion and $54.8 billion, aligning with market expectations.
The company maintains a strong return on equity of 18.28% despite long-term decline in gross margin.
Record backlog provides visibility, which allows for disciplined capital allocation that funds capacity to convert orders efficiently.
Reliance on government contracts and the challenges of workforce management are areas that require strategic attention.
Named Competitors
F-35 Lightning II — Advanced fighter jet program
Patriot Missile System — Air defense system
Gulfstream — Premium business jet manufacturer
Virginia-class Submarine — Nuclear-powered submarine program
Recent Developments
(February 2026) Filed 2025 annual report with record $118 billion backlog and 1.5x book-to-bill ratio for full year
(January 2026) Reported Q4 and full-year 2025 earnings with net earnings of $4.2 billion on $52.6 billion revenue, up 10.1% from 2024
(2025) Achieved 30% growth in company-wide backlog and record profitability with improved cash conversion
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