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What changed in General Dynamics's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of General Dynamics's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+228 added−239 removedSource: 10-K (2026-01-30) vs 10-K (2025-02-07)

Top changes in General Dynamics's 2025 10-K

228 paragraphs added · 239 removed · 177 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

82 edited+27 added−24 removed56 unchanged
Biggest changeELS also offers Duro and Eagle tactical vehicles in a range of options and weight classes and is currently producing these vehicles for Luxembourg, Switzerland and Germany, while providing a full range of product support for the German armed forces. We are expanding our platform capabilities through continued investment in robotic and autonomous vehicle technology.
Biggest changeELS also offers Duro and Eagle tactical vehicles in a range of options and weight classes and is currently producing these vehicles for Germany, Switzerland and Luxembourg, while providing a full range of product support for the German and Swiss Armed Forces. 11 On December 31, 2025, the installed base for our major vehicle programs, as well as the quantity and scheduled final delivery date of vehicles and vehicle upgrades in backlog were as follows: Complementing our military-vehicle portfolio, OTS is a leading provider of capabilities across munitions, weapon systems, artillery, and energetics, with over 25 locations across the United States and Canada.
We also operate one of the world’s largest custom completion and refurbishment centers for both narrow- and wide-body aircraft and perform modifications, upgrades and lifecycle sustainment support for various government fleets. We continue to grow our global footprint through acquisitions, expansions and significant renovations in strategic business aviation markets most 5 frequented by these customers.
We also operate one of the world’s largest custom completion and refurbishment centers for both narrow- and wide-body aircraft and perform modifications, upgrades and lifecycle sustainment support for various government fleets. We continue to grow our global footprint through acquisitions, expansions and significant renovations in strategic business aviation markets most frequented by these customers.
Our training and development efforts focus on ensuring that our people are appropriately trained on critical job skills as well as on leadership behaviors that are consistent with our Ethos. We conduct rigorous succession planning exercises to ensure that key positions have the appropriate level of 17 bench strength to provide for future key positions and leadership transitions.
Our training and development efforts focus on ensuring that our people are appropriately trained on critical job skills as well as on leadership behaviors that are consistent with our Ethos. We conduct rigorous succession planning exercises to ensure that key positions have the appropriate level of bench strength to provide for future key positions and leadership transitions.
These include advanced fire-control and weapon launch systems, tactical control systems, specialized hardware and software solutions for acoustics, cybersecurity, and torpedo guidance, and other core capabilities that are essential for submarine modernization with U.S. and allied forces. Mission Systems also continues to invest in autonomous capabilities both undersea and in the air.
These include advanced fire-control and weapon-launch systems; tactical control systems; specialized hardware and software solutions for acoustics, cybersecurity and torpedo guidance; and other core capabilities that are essential for submarine modernization for U.S. and allied forces. Mission Systems also continues to invest in autonomous capabilities both undersea and in the air.
Ten of the planned boats in Block V will include the Virginia Payload Module, an 84-foot Electric Boat-designed-and-built hull section that adds four additional payload tubes, more than tripling the strike capacity of these submarines and providing unique capabilities to support special missions.
Ten of the boats in Block V will include the Virginia Payload Module, an 84-foot Electric Boat-designed-and-built hull section that adds four additional payload tubes, more than tripling the strike capacity of these submarines and providing unique capabilities to support special missions.
The segment is organized into two business units — Information Technology (GDIT) and Mission Systems — with a diverse portfolio that includes: • consulting, technology solutions and mission-support services; • mobile communication, computers, command-and-control and cyber (C5) mission systems; and • intelligence, surveillance and reconnaissance (ISR) solutions. Over the past decade, the U.S.
The segment is organized into two business units — Information Technology (GDIT) and Mission Systems — with a diverse portfolio that includes: • technology solutions and mission-support services and solutions; • mobile communication, computers, command-and-control and cyber (C5) mission systems; and • intelligence, surveillance and reconnaissance (ISR) solutions. Over the past decade, the U.S.
Gulfstream and Jet Aviation have been at the forefront of the industry by adopting and expanding the availability of SAF, which achieves as much as an 80% reduction in carbon dioxide emissions per gallon over its lifecycle compared to petroleum-based jet fuel.
Gulfstream and Jet Aviation have been at the forefront of the industry by adopting and expanding the availability of sustainable aviation fuel (SAF), which achieves as much as an 80% reduction in carbon dioxide emissions per gallon over its lifecycle compared to petroleum-based jet fuel.
Our company consists of 10 business units, which are organized into four operating segments: Aerospace, Marine Systems, Combat Systems and Technologies. We refer to the latter three collectively as our defense segments. To optimize market focus, customer intimacy, agility and operating expertise, each business unit is responsible for the development and execution of its strategy and operating results.
Our company consists of 10 business units, which are organized into four operating segments: Aerospace, Marine Systems, Combat Systems and Technologies. We refer to the latter three collectively as our defense segments. To ensure market focus, customer intimacy, agility and operating expertise, each business unit is responsible for the development and execution of its strategy and operating results.
The following represents Gulfstream’s current product line, along with the maximum range, maximum speed, cabin length (excluding baggage), and total number of city-pair speed records held for each aircraft: Gulfstream’s in-service aircraft hold 405 city-pair speed records, more than any other business jet manufacturer, including the National Aeronautic Association’s polar and westbound around-the-world speed records.
The following represents Gulfstream’s current product line, along with the maximum range, maximum speed, cabin length (excluding baggage), and total number of city-pair speed records held for each aircraft: Gulfstream’s in-service aircraft hold more than 350 city-pair speed records, more than any other business jet manufacturer, including the National Aeronautic Association’s polar and westbound around-the-world speed records.
We maintain our market-leading position by focusing on innovation, affordability and speed to market to deliver increased survivability, performance and lethality on the battlefield. Our large installed base of wheeled and tracked vehicles around the world and expertise gained from research, engineering and production programs position us well for modernization programs, support and sustainment services, and future development programs.
We maintain our market-leading position by focusing on innovation, affordability and speed to market to deliver increased survivability, mobility and lethality on the battlefield. Our large installed base of wheeled and tracked vehicles around the world and expertise gained from research, engineering and production programs position us well for modernization programs, support and sustainment services, and future development programs.
Construction is scheduled to span two decades, and the value of the Navy’s program of record is in excess of $125 billion. The Navy procures Virginia-class submarines in multi-boat blocks. Along with an industry partner, we are currently working on Blocks IV and V in the program, with 14 Virginia-class submarines in our backlog scheduled for delivery through 2032.
Construction is scheduled to span two decades, and the value of the Navy’s program of record is in excess of $125 billion. The Navy procures Virginia-class submarines in multi-boat blocks. Along with an industry partner, we are currently working on Blocks IV and V in the program, with 14 Virginia-class submarines in our backlog scheduled for delivery through 2034.
Competitions for major defense and other government contracting programs often require companies to form teams to bring together a spectrum of capabilities to meet the customer’s requirements. Opportunities associated with these programs include roles as the program’s integrator, overseeing and coordinating the efforts of all participants on a team, or as a provider of a specific component or subsystem.
Competitions for major defense and other government contracting programs often require companies to form teams to bring together a spectrum of capabilities to meet the customer’s requirements. Opportunities associated with these programs include roles overseeing and coordinating the efforts of all participants on a team, or as a provider of a specific component or subsystem.
For additional information relating to the impact of environmental matters, see Note M to the Consolidated Financial Statements in Item 8. 19 AVAILABLE INFORMATION We file reports and other information with the Securities and Exchange Commission (SEC) pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the Exchange Act).
For additional information relating to the impact of environmental matters, see Note M to the Consolidated Financial Statements in Item 8. 20 AVAILABLE INFORMATION We file reports and other information with the Securities and Exchange Commission (SEC) pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the Exchange Act).
In support of our Navy customer’s significant increase in demand for submarines and surface ships, we have made substantial investments to expand our facilities, grow and train our workforce, and expand our supply chain. The resulting increase in capacity and capabilities will support the unprecedented growth expected in our shipbuilding business, particularly submarines, over the next two decades.
In support of our Navy customer’s significant increase in demand for submarines and surface ships, we have made substantial investments to expand our facilities, grow and train our workforce, and expand our supply chain. The resulting increase in capacity and capabilities will support the significant demand expected in our shipbuilding business, particularly submarines, over the next two decades.
With six variants, including a reconnaissance vehicle, an armored personnel carrier and various support platforms, the Ajax family of vehicles offers advanced electronic architecture and proven technology for a balance of survivability, lethality and mobility, along with high reliability for a vehicle in its weight class.
With 589 vehicles comprising six variants, including a reconnaissance vehicle, an armored personnel carrier and various support platforms, the Ajax family of vehicles offers advanced electronic architecture and proven technology for a balance of survivability, lethality and mobility, along with high reliability for a vehicle in its weight class.
In addition, the FAR addresses the allowability of our costs, while the CAS addresses the allocation of those costs to contracts. The FAR and CAS subject us to audits and other government reviews 18 covering issues such as cost, performance, internal controls and accounting practices relating to our contracts. NON-U.S.
In addition, the FAR addresses the allowability of our costs, while the CAS addresses the allocation of those costs to contracts. The FAR and CAS subject us to audits and other government reviews covering issues such as cost, performance, internal controls and accounting practices relating to our contracts. 19 NON-U.S.
For example, the DoD implements the FAR through the Defense Federal Acquisition Regulation Supplement (DFARS). For all federal government entities, the FAR regulates the phases of any product or service acquisition, including: • acquisition planning; • competition requirements; • contractor qualifications; • protection of source selection and supplier information; and • acquisition procedures.
For example, the DoW implements the FAR through the Defense Federal Acquisition Regulation Supplement (DFARS). For all federal government entities, the FAR regulates the phases of any product or service acquisition, including: • acquisition planning; • competition requirements; • contractor qualifications; • protection of source selection and supplier information; and • acquisition procedures.
The Technologies segment leverages its scale, partnerships and deep knowledge of its customers’ missions and challenges to bring innovation to those customers across a portfolio of thousands of contracts. While no individual contract is material to the segment’s results, the following highlights provide a sampling of the value of this business. In the defense market, GDIT is modernizing the U.S.
The Technologies segment leverages its scale, partnerships and deep knowledge of its customers’ missions and challenges to bring innovation to those customers across a portfolio of thousands of contracts. While no individual contract is material to the segment’s results, the following highlights provide a sampling of the capabilities this business delivers. In the defense market, GDIT is modernizing the U.S.
The business’ portfolio includes both prime contract programs with government customers as well as subcontract positions with large platform providers to develop and integrate technologies to make their systems smarter and more secure.
The business’s portfolio includes both prime contract programs with government customers as well as subcontract positions with large platform providers to develop and integrate technologies to make their systems smarter and more secure.
Space Development Agency (SDA) selected Mission Systems to establish the ground operations and integration segment for Tranche 1 and 2 of the National Defense Space Architecture by building ground entry points and operations centers, as well as providing network operations and systems integration services for the SDA’s next tranche of proliferated low-Earth orbit satellites.
Space Development Agency (SDA) selected Mission Systems to establish the ground operations and integration segment for Tranches 1 and 2 of the National Defense Space Architecture by building ground entry points and operations centers, as well as providing network operations and systems integration services for the SDA’s proliferated Low Earth Orbit satellites.
We have earned our reputation through: • superior aircraft design, manufacturing excellence, quality, performance, safety and reliability; • technologically advanced flight deck and cabin systems; and • industry-leading customer support. 3 We believe the key to long-term value creation in the business jet industry is steady investment in new aircraft models and technologies and in customer service capabilities.
We have earned our reputation through: • superior aircraft design, manufacturing excellence, quality, performance, safety and reliability; • technologically advanced flight deck and cabin systems; and • industry-leading customer support. 3 We believe the key to long-term value creation in the business jet industry is steady development and release of new aircraft models and technologies and in customer service capabilities.
In addition, we support a variety of manned aircraft and unmanned aerial vehicle (UAV) platforms with mission-critical processing and security subsystems on both modern combat and ISR aircraft as well as emerging capabilities like the Collaborative Combat Aircraft. Revenue for the Technologies segment was 27% of our consolidated revenue in 2024, 31% in 2023 and 32% in 2022.
In addition, we support a variety of manned aircraft and unmanned aerial vehicle (UAV) platforms with mission-critical processing and security subsystems on both modern combat and ISR aircraft as well as emerging capabilities like the Collaborative Combat Aircraft. Revenue for the Technologies segment was 26% of our consolidated revenue in 2025, 27% in 2024 and 31% in 2023.
The Aerospace segment competes worldwide in the business jet aircraft services market primarily on the basis of quality, price and timeliness. While competition for each type of service varies somewhat, the segment faces a number of competitors of varying sizes for each of its offerings. 16 INTELLECTUAL PROPERTY We develop technology, manufacturing processes and systems-integration practices.
The Aerospace segment competes worldwide in the business jet aircraft services market primarily on the basis of quality, price and timeliness. While competition for each type of service varies somewhat, the segment faces a number of competitors of varying sizes for each of its offerings. 17 INTELLECTUAL PROPERTY We develop specific technology, manufacturing processes and systems-integration intellectual property.
We offer the ASCOD, a highly versatile tracked combat vehicle with multiple versions, including the Spanish Pizarro and the Austrian Ulan.
We offer the ASCOD, a highly versatile tracked combat vehicle with multiple versions, including the Spanish Pizarro, Austrian Ulan and Latvian ASCOD Hunter.
For information on the advantages and disadvantages of each of these contract types, see Note B to the Consolidated Financial Statements in Item 8. U.S. COMMERCIAL Our U.S. commercial revenue was $6.7 billion in 2024, $5.8 billion in 2023 and $5.7 billion in 2022, which represented 14%, 14% and 15% of our consolidated revenue in each of the respective years.
For information on the advantages and disadvantages of each of these contract types, see Note B to the Consolidated Financial Statements in Item 8. U.S. COMMERCIAL Our U.S. commercial revenue was $7.6 billion in 2025, $6.7 billion in 2024 and $5.8 billion in 2023, which represented 15% of our consolidated revenue in 2025, and 14% in 2024 and 2023.
Under the User Facing and Data Center Services (UDS) contract for the National Geospatial-Intelligence Agency (NGA), GDIT is providing hybrid cloud services, and innovative IT design, engineering, implementation and operations support services. We are supporting NGA in the development of their new headquarters in St. Louis, Missouri, and are committed to supporting the St.
Under the User Facing and Data Center Services (UDS) contract for the National Geospatial-Intelligence Agency (NGA), GDIT is providing hybrid cloud services, and innovative IT design, engineering, implementation and operations support services. We supported NGA in the development of their new headquarters in St. Louis, Missouri, which opened in late 2025, and are committed to supporting the St.
HIGLAS is a single, integrated accounting system that standardizes and centralizes federal financial accounting for all of CMS’s programs. The HIGLAS system processes approximately 4.5 million Medicare claims daily and over $1.6 trillion in annual payments.
HIGLAS is a single, integrated accounting system that standardizes and centralizes federal financial accounting for all of CMS’s programs. The HIGLAS system processes approximately 4.5 million Medicare transactions daily and over $1.7 trillion in annual payments.
The remaining 16% of our workforce is based internationally in over 65 countries with the primary concentrations being in North America and Europe. Approximately 21% of our workforce is represented by collective bargaining agreements. • Our global workforce is 76% male and 24% female, and our senior leadership teams across the business are represented by 75% males and 25% females.
The remaining 16% of our workforce is based internationally in over 65 countries with the primary concentrations being in North America and Europe. Approximately 23% of our workforce is represented by collective bargaining agreements. • Our global workforce is 77% male and 23% female, and our senior leadership teams across the business are represented by 76% males and 24% females.
We operate a leading global FBO network of approximately 30 facilities on four continents and support all aircraft types with a full range of maintenance services, including 24/7 global aircraft-on-ground support.
We operate a leading global fixed-base operator (FBO) network of 5 approximately 30 facilities on four continents and support all aircraft types with a full range of maintenance services, including 24/7 global aircraft-on-ground support.
While the installed base of aircraft is concentrated in North America, orders from 15 customers outside North America represent a significant portion of our aircraft business with approximately 43% of the Aerospace segment’s aircraft backlog on December 31, 2024. COMPETITION Several factors determine our ability to compete successfully in the defense and business aviation markets.
While the installed base of aircraft is concentrated in North America, orders from 16 customers outside North America represent a significant portion of our aircraft business with approximately 38% of the Aerospace segment’s aircraft backlog on December 31, 2025. COMPETITION Several factors determine our ability to compete successfully in the defense and business aviation markets.
To achieve this goal, we invest in advanced technologies, pursue a culture of continuous improvement, and strive to be the low-cost, high-quality provider in each of our markets. The result is long-term value creation measured by strong earnings and cash flow and an attractive return on capital.
To achieve this goal, we invest in advanced technologies, focus on execution, pursue a culture of continuous improvement, and strive to be the low-cost, high-quality provider in each of our markets. The result is long-term value creation measured by delivering on our commitments to our customers coupled with strong earnings and cash flow and an attractive return on capital.
Our revenue from non-U.S. government and commercial customers was $8 billion in 2024, $6.1 billion in 2023 and $6 billion in 2022, which represented 17% of our consolidated revenue in 2024, 14% in 2023 and 15% in 2022. We conduct business with customers around the world.
Our revenue from non-U.S. government and commercial customers was $9.2 billion in 2025, $8 billion in 2024 and $6.1 billion in 2023, which represented 17% of our consolidated revenue in 2025, 17% in 2024 and 14% in 2023. We conduct business with customers around the world.
In support of allied navies, we offer program management, planning, engineering and design support for submarine construction programs. 8 Revenue for the Marine Systems segment was 30% of our consolidated revenue in 2024, 29% in 2023 and 28% in 2022.
In support of allied navies, we offer program management, planning, engineering and design support for submarine construction programs. Revenue for the Marine Systems segment was 32% of our consolidated revenue in 2025, 30% in 2024 and 29% in 2023.
In modernizing the HIGLAS system, GDIT will leverage its AI/ML capabilities to analyze trends and patterns to determine potential anomalies in the data and detect fraud, waste and abuse.
In modernizing the HIGLAS system, GDIT is leveraging its AI/ML capabilities to analyze trends and patterns to determine potential anomalies in the data and detect fraud, waste and abuse.
We listen to our people to assess areas of concern and levels of engagement. 2024 WORKFORCE STATISTICS • Approximately 84% of our employees are based in the United States, of which roughly 69% are white, 31% are people of color, 19% are veterans of the U.S. armed forces and 8% have self-reported having a disability.
We listen to our people to assess areas of concern and levels of engagement. 18 2025 WORKFORCE STATISTICS • Approximately 84% of our employees are based in the United States, of which roughly 69% are white, 31% are people of color, 20% are veterans of the U.S. Armed Forces and 9% have self-reported having a disability.
Revenue by major products and services was as follows: Year Ended December 31 2024 2023 2022 Aircraft manufacturing $ 7,811 $ 5,710 $ 5,876 Aircraft services 3,438 2,911 2,691 Total Aerospace $ 11,249 $ 8,621 $ 8,567 6 MARINE SYSTEMS Our Marine Systems segment is the leading designer and builder of nuclear-powered submarines and a leader in surface combatant and auxiliary ship design and construction for the U.S.
Revenue by major products and services was as follows: 6 Year Ended December 31 2025 2024 2023 Aircraft manufacturing $ 9,413 $ 7,811 $ 5,710 Aircraft services 3,697 3,438 2,911 Total Aerospace $ 13,110 $ 11,249 $ 8,621 MARINE SYSTEMS Our Marine Systems segment is the leading designer and builder of nuclear-powered submarines and a leader in surface combatant and auxiliary ship design and construction for the U.S.
We offer a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapons systems and munitions; and technology products and services. Our leadership positions in attractive business aviation and defense markets enable us to deliver superior and enduring shareholder returns.
We offer a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapon systems and munitions; and technology products and services. Our leadership positions in attractive business aviation and defense markets enable us to deliver superior and enduring capabilities to our customers and returns to our shareholders.
We expect to realize an attractive return from these investments in each of our segments, and we will continue to evaluate our capital deployment opportunities to deliver long-term growth and enduring value to our shareholders. Following is additional information on each of our operating segments.
We expect to realize an attractive return from these investments in each of our segments, and we will continue to ensure our capital deployment delivers long-term growth and enduring value to our shareholders and our customers. Following is additional information on each of our operating segments.
Since 2019, Jet Aviation has uploaded more than 11 million gallons of blended SAF to its customers. Revenue for the Aerospace segment was 24% of our consolidated revenue in 2024, 20% in 2023 and 22% in 2022.
Since 2019, Jet Aviation has uploaded more than 12 million gallons of blended SAF to its customers. Revenue for the Aerospace segment was 25% of our consolidated revenue in 2025, 24% in 2024 and 20% in 2023.
Electric Boat is the prime contractor and lead shipyard on all Navy nuclear-powered submarine programs. The business is responsible for all aspects of design and engineering and leads the construction of both Columbia-class ballistic-missile submarines and Virginia-class attack submarines. The Columbia-class ballistic-missile submarine is a 12-boat program that the Navy considers its top acquisition priority.
Electric Boat is the prime contractor and lead shipyard on all Navy nuclear-powered submarine programs. The business is responsible for all aspects of design and engineering and leads the construction of both Columbia-class ballistic-missile submarines and Virginia-class attack submarines. The Columbia-class ballistic-missile submarine is a 12-boat program considered one of the nation’s top acquisition priorities.
Of our U.S. government revenue, fixed-price contracts accounted for 51% in 2024, 53% in 2023 and 56% in 2022; cost-reimbursement contracts accounted for 43% in 2024, 41% in 2023 and 38% in 2022; and time-and-materials contracts accounted for 6% in 2024, 2023 and 2022.
Of our U.S. government revenue, fixed-price contracts accounted for 51% in 2025, 51% in 2024 and 53% in 2023; cost-reimbursement contracts accounted for 44% in 2025, 43% in 2024 and 41% in 2023; and time-and-materials contracts accounted for 5% in 2025, and 6% in 2024 and 2023.
Mission Systems is a defense electronics manufacturer and integrator for C5ISR applications in all domains. Our products and solutions are built into platforms and integrated systems critical to our national security.
Mission Systems is a defense electronics manufacturer and integrator for Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance and Reconnaissance (C5ISR) applications in all domains. Our products and solutions are built into platforms and integrated systems critical to our national security.
The result is a significant increase in federal information technology (IT) modernization and technology spending in recent years and a shift to large-scale, end-to-end, highly engineered solutions to meet the ever-changing information-systems and mission-support needs of these customers. GDIT and Mission Systems share a common defense, intelligence and federal civilian customer base and increasingly go to market together.
The result is an increase in federal information technology (IT) modernization and technology spending in recent years and a shift to the rapid development of solutions to meet the ever-changing information-systems and mission-support needs of these customers. GDIT and Mission Systems share a common defense, intelligence and federal civilian customer base and, when appropriate, go to market together.
Revenue by major products and services was as follows: Year Ended December 31 2024 2023 2022 Nuclear-powered submarines $ 10,392 $ 8,631 $ 7,310 Surface ships 2,819 2,698 2,561 Repair and other services 1,132 1,132 1,169 Total Marine Systems $ 14,343 $ 12,461 $ 11,040 COMBAT SYSTEMS Our Combat Systems segment is a premier manufacturer and integrator of land combat solutions worldwide, including wheeled and tracked combat vehicles, weapons systems and munitions.
Revenue by major products and services was as follows: Year Ended December 31 2025 2024 2023 Nuclear-powered submarines $ 12,608 $ 10,392 $ 8,631 Surface ships 2,932 2,819 2,698 Repair and other services 1,183 1,132 1,132 Total Marine Systems $ 16,723 $ 14,343 $ 12,461 9 COMBAT SYSTEMS Our Combat Systems segment is a premier manufacturer and integrator of land combat solutions worldwide, including wheeled and tracked combat vehicles, weapon systems, energetics and munitions.
In addition to expanding the reach of Gulfstream’s aircraft maintenance network outside the United States, Jet Aviation provides a comprehensive suite of innovative aircraft services for aircraft owners and operators around the world.
In addition to expanding the reach of Gulfstream’s aircraft maintenance network outside the United States, Jet Aviation provides a comprehensive suite of innovative aircraft services for aircraft owners and operators around the world. Jet Aviation manages over 300 business aircraft globally on behalf of individuals and corporate owners.
While the steepest portion of our personnel ramp is behind us, we still expect the Electric Boat workforce to continue to grow to enable sustained production of one Columbia-class submarine plus up to two Virginia-class submarines per year as the submarine industrial base expands to support that pace.
We expect the Electric Boat workforce to continue to grow to enable sustained production of one Columbia-class submarine plus up to two Virginia-class submarines per year as the submarine industrial base expands to support that pace.
Revenue by major products and services was as follows: Year Ended December 31 2024 2023 2022 Military vehicles $ 5,101 $ 5,036 $ 4,581 Weapons systems, armament and munitions 2,932 2,442 2,024 Engineering and other services 964 790 703 Total Combat Systems $ 8,997 $ 8,268 $ 7,308 TECHNOLOGIES Our Technologies segment provides a full spectrum of services, technologies and products to a wide range of military, intelligence, federal civilian and state customers.
Revenue by major products and services was as follows: Year Ended December 31 2025 2024 2023 Military vehicles $ 4,970 $ 5,101 $ 5,036 Weapon systems and munitions 3,104 2,932 2,442 Engineering and other services 1,172 964 790 Total Combat Systems $ 9,246 $ 8,997 $ 8,268 TECHNOLOGIES Our Technologies segment provides a full spectrum of services, technologies and products to a wide range of military, intelligence, federal civilian and state customers.
Revenue by major products and services was as follows: Year Ended December 31 2024 2023 2022 IT services $ 8,761 $ 8,459 $ 8,195 C5ISR solutions 4,366 4,463 4,297 Total Technologies $ 13,127 $ 12,922 $ 12,492 CUSTOMERS In 2024, 69% of our consolidated revenue was from the U.S. government, 14% was from U.S. commercial customers, 10% was from non-U.S. government customers and the remaining 7% was from non-U.S. commercial customers. 14 U.S.
Revenue by major products and services was as follows: Year Ended December 31 2025 2024 2023 IT services $ 9,057 $ 8,761 $ 8,459 C5ISR solutions 4,414 4,366 4,463 Total Technologies $ 13,471 $ 13,127 $ 12,922 CUSTOMERS In 2025, 68% of our consolidated revenue was from the U.S. government, 15% was from U.S. commercial customers, 8% was from non-U.S. government customers and the remaining 9% was from non-U.S. commercial customers. 15 U.S.
Our revenue from the U.S. government was as follows: Year Ended December 31 2024 2023 2022 DoD $ 27,191 $ 24,720 $ 22,250 Non-DoD 4,810 4,711 4,808 Foreign military sales (FMS)* 1,063 896 633 Total U.S. government $ 33,064 $ 30,327 $ 27,691 % of total revenue 69 % 72 % 70 % * In addition to our direct non-U.S. sales, we sell to non-U.S. governments through the FMS program.
Our revenue from the U.S. government was as follows: Year Ended December 31 2025 2024 2023 DoW $ 29,788 $ 27,191 $ 24,720 Non-DoW 4,954 4,810 4,711 Foreign military sales (FMS)* 1,015 1,063 896 Total U.S. government $ 35,757 $ 33,064 $ 30,327 % of total revenue 68 % 69 % 72 % * In addition to our direct non-U.S. sales, we sell to non-U.S. governments through the FMS program.
We continue to invest in these maintenance, repair and overhaul (MRO) facilities and inventory to accommodate fleet growth. We also operate a 24/7 year-round customer support center and offer on-call Gulfstream aircraft technicians ready to deploy around the world for customer service requirements under our Field and Airborne Support Team (FAST) rapid-response unit.
We also operate a 24/7 year-round customer support center and offer on-call Gulfstream aircraft technicians ready to deploy around the world for customer service requirements under our Field and Airborne Support Team (FAST) rapid-response unit.
Navy ship and submarine construction plans over the next two decades, development of next-generation platforms and technologies to meet customers’ emerging requirements in Combat Systems, and strategic acquisitions to achieve critical mass and build out a complete spectrum of solutions for our Technologies customers.
Navy ship and submarine construction over the next two decades, development of next-generation platforms and technologies to meet customers’ emerging requirements in Combat Systems, and both organic development and strategic acquisitions to ensure we can provide a complete spectrum of solutions for our Technologies customers.
In addition, with the convergence of digital technologies, the two businesses benefit from significant complementary offerings and solution sets. We make strategic investments in new and emerging technologies and partner with commercial companies to bring solutions to our customers that combine leading-edge technologies with an intimate knowledge of customers’ mission needs.
We make strategic investments in new and emerging technologies and partner with commercial companies to bring solutions to our customers that combine leading-edge technologies with an intimate knowledge of customers’ mission needs.
GOVERNMENT Our primary customer is the DoD. We also contract with other U.S. government customers, including the intelligence community and the Departments of Homeland Security and Health and Human Services.
GOVERNMENT Our primary customer is the DoW. We also contract with other U.S. government customers, including the intelligence community and other departments and agencies.
Along with strong contributions from the states of Connecticut and Rhode Island, we continue to invest in the training and tools necessary for our skilled employees to deliver these next-generation submarines to the Navy. We continue to work with our growing network of approximately 3,000 suppliers to support the growth related to concurrent production of the two submarine programs.
Along with strong contributions from the states of Connecticut and Rhode Island, we invest in the training and tools necessary for our skilled employees to deliver these next-generation submarines to the Navy.
Given our deep product innovation experience, we were recently selected to build the Next Generation Survival radio for the U.S. Joint Forces. For the Canadian Army, we provide the Land Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) system. 13 Mission Systems continues to help advance our nation’s position in the space domain. The U.S.
For the Canadian Army, we provide the Land Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) system. 14 Mission Systems continues to advance our nation’s position in the space domain. The U.S.
On December 31, 2024, backlog for our major ship construction programs and the scheduled final delivery date of ships currently in backlog were as follows: In addition to design and construction activities, our Marine Systems segment provides comprehensive post-delivery services to modernize and extend the service life of these and other Navy ships.
In 2025, NASSCO, along with DSEC, signed a tri-party memorandum of agreement with Samsung Heavy Industries, one of the world’s leading shipbuilders, to explore future commercial and government opportunities. 8 On December 31, 2025, backlog for our major ship construction programs and the scheduled final delivery date of ships currently in backlog were as follows: In addition to design and construction activities, our Marine Systems segment provides comprehensive post-delivery services to modernize and extend the service life of these and other Navy ships.
We have invested significant capital over the past several years in expanded and modernized facilities at Electric Boat to support the growth in submarine construction, and will work with our Navy customer on any additional construction needs that could develop in light of increased submarine demand.
We have invested significant capital over the past several years in expanded and modernized facilities at Electric Boat to support the growth in submarine construction and are working with our Navy customer on additional capacity to meet the increased demand for submarines. Consistent with our commitment to invest capital is our commitment to developing our Electric Boat workforce.
The highly lethal, survivable and mobile direct-fire combat vehicle melds recently developed and battle-tested designs to dominate ground threats on the multi-domain battlefield. Combat Systems provides similar capabilities for U.S. allies and partners through export opportunities and through our operations in several countries around the world, including Canada, the United Kingdom, Spain, Switzerland, Austria, Germany and Romania.
Combat Systems provides similar capabilities for U.S. allies and partners through export opportunities and through our longstanding operations in several countries around the world, including Canada, the United Kingdom, Spain, Switzerland, Austria, Germany and Romania.
The G500 and G600 entered service in 2018 and 2019, respectively. These clean sheet aircraft replaced the G450 and G550 models, whose combined family has an installed base of more than 1,650 aircraft around the world.
It combines Gulfstream’s most spacious cabin with the advanced Symmetry Flight Deck, and the superior high-speed performance of all-new engines to deliver best-in-class capabilities. The G500 and G600 entered service in 2018 and 2019, respectively. These clean-sheet aircraft replaced the G450 and G550 models, whose combined family has an installed base of more than 1,650 aircraft around the world.
We continue to maximize the capability, effectiveness and lethality of the Abrams tank to overmatch all current and potential threats. The demand by NATO members and other allies and partners for procurement and upgrades of Abrams tanks remains strong, reflected by a growing installed base in Europe, the Middle East, North Africa and Indo-Pacific theaters of operation.
The demand by NATO members and other allies and partners for procurement and upgrades of Abrams tanks remains strong, reflected by a growing installed base in Europe, the Middle East, North Africa and Indo-Pacific theaters of operation. The Stryker is an eight-wheeled, medium-weight combat vehicle that combines lethality, mobility and survivability.
Our U.S. government customer is a supplier for some of our programs. These supply networks can experience price fluctuations and capacity constraints, which can put pressure on our costs. Effective management and oversight of suppliers and subcontractors is an important element of our successful performance.
During 2025, we hired more than 18,700 individuals. RAW MATERIALS AND SUPPLIERS We depend on suppliers and subcontractors for raw materials, components and subsystems. Our U.S. government customer is a supplier for some of our programs. These supply networks can experience price fluctuations and capacity constraints, which can put pressure on our costs.
The Gulfstream family of aircraft offer industry-leading cabin, cockpit and safety technologies and the longest ranges at the fastest speeds in their respective classes.
The result is the unprecedented development of an all-new lineup of the most technologically advanced business jet aircraft in the world. The Gulfstream family of aircraft offers industry-leading cabin, cockpit and safety technologies and the longest ranges at the fastest speeds in their respective classes.
The segment’s highly skilled workforce comprises approximately 40,000 employees, including technologists, engineers, mission experts and cleared personnel critical to solving the toughest security and technology challenges facing the United States and its allies. GDIT provides digital consulting services, modernizes large-scale IT enterprises, and deploys the latest technologies to optimize and protect customer networks, data and information.
The segment’s highly skilled workforce comprises approximately 40,000 employees, including technologists, engineers, mission experts and cleared personnel critical to solving the toughest security and technology challenges facing the United States and its allies. GDIT provides technology solutions and expertise that underpin our national security systems, modernize government operations, and secure networks, data and information from sophisticated cyber attacks.
Work on the final ESB in backlog will continue into 2026, while the six T-AO-205 ships currently in backlog have deliveries planned into 2028 . In 2024, NASSCO received an award for the tenth ship of this class with options to build up to seven additional T-AO-205 ships.
Work on the final ESB in backlog will complete in 2026, while the seven T-AO-205 ships currently in backlog have deliveries planned into 2030. In 2025, NASSCO received an award for the eleventh and twelfth T-AO-205 ships.
Operating thousands of complex digital modernization programs across the federal government, GDIT’s expansive portfolio includes cloud services, cybersecurity, network modernization, artificial intelligence/machine learning (AI/ML), application development, high-performance computing, and 5G and next-generation wireless communications. In 2024, GDIT acquired Iron EagleX, Inc., further expanding its portfolio of mission solutions in AI/ML, cyber, software development and cloud services.
Operating thousands of complex digital modernization programs across the federal government, GDIT’s expansive portfolio includes cloud services, cybersecurity, network modernization, artificial intelligence/machine learning (AI/ML), application development, high-performance computing, and 5G and advanced communications. At the center of these efforts is GDIT’s development of secure, tailorable and scalable digital solutions, known as our Digital Accelerators.
Land Systems is producing 449 new LAVs for the Canadian army in eight variants, including ambulances, command posts, maintenance and recovery vehicles, and troop-carrying vehicles, as well as upgrading Canada’s existing fleet.
As a result, we have a market-leading position in LAVs with more than 12,000 of the high-mobility, versatile Pandur, Piranha and other LAVs in service worldwide. Land Systems is producing 515 new LAVs for the Canadian army in nine variants, including ambulances, command posts, maintenance and recovery vehicles, and troop-carrying vehicles, as well as upgrading Canada’s existing fleet.
ELS is producing and upgrading Piranha vehicles, a premier 8x8 armored combat vehicle, around the world. We are currently providing Piranha 5 vehicles for several countries, including Denmark, Romania and Spain. Additionally, we provide mobile bridge systems with payloads ranging from 100 kilograms to 100 tons to customers worldwide.
ELS is producing and upgrading Piranha vehicles, a premier 8x8 armored combat vehicle, around the world. We are currently providing the Piranha 5 family of vehicles for several countries, including Germany, Romania, Spain and Denmark. The Piranha family of vehicles is expanding through the addition of new versions including the Piranha 6x6 and Piranha 10x10.
At our Savannah campus, we added new purpose-built manufacturing facilities, increased aircraft service capacity, opened a customer-support distribution center and expanded our R&D capabilities. We offer comprehensive support for the more than 3,000 Gulfstream aircraft in service around the world and operate an extensive network of factory-owned service centers.
As Gulfstream’s aircraft portfolio and customer base have grown and become increasingly global in reach over the years, we have invested in our facilities and operations around the world. At our Savannah campus, we added new purpose-built manufacturing facilities, increased aircraft service capacity, opened a customer-support distribution center and expanded our R&D capabilities.
Revenue for the Combat Systems segment was 19% of our consolidated revenue in 2024, 20% in 2023 and 18% in 2022.
These initiatives will strengthen supply chain resiliency and support the full lifecycle of critical defense systems. Revenue for the Combat Systems segment was 17% of our consolidated revenue in 2025, 19% in 2024 and 20% in 2023.
Mission Systems develops and manufactures high-assurance encryption products that are widely deployed to protect national security systems, data and networks against persistent threats. These Type 1 National Security Agency (NSA)-certified products and capabilities provide needed protection for classified voice, video and data in-transit or at-rest in all domains.
These Type 1 National Security Agency (NSA)-certified products and capabilities provide needed protection for classified voice, video and data in-transit or at-rest in all domains. Capabilities range from enterprise systems to embedded applications required for terrestrial, airborne or space environments. We are working with our U.S.
Department of Defense (DoD), the intelligence community and federal civilian agencies have increasingly prioritized technology solutions as a critical element of their missions, transforming technology resources from back-office support functions to a strategic priority. Expanded cyber threats and the demand for advanced warfighter connectivity have accelerated these trends, adding urgency to required technology investments.
Department of War (DoW), the intelligence community and federal civilian agencies have increasingly prioritized technology solutions to drive operational efficiencies, advance security and accelerate mission-decision making in real time. Expanded geopolitical and cyber threats and the demand for advanced warfighter connectivity have accelerated these trends, adding urgency to required technology investments.
Capabilities range from enterprise systems to embedded applications required for terrestrial, airborne or space environments. We are working with our U.S. Army customer to adapt elements of advanced resilient radio frequency (RF) to address battlefield realities such as jamming, spoofing, cyberattacks and lack of ground connectivity.
Army customer to adapt elements of advanced resilient radio frequency (RF) to address battlefield realities such as jamming, spoofing, cyberattacks and lack of ground connectivity. Given our deep product innovation experience, we were selected to build the Next Generation Survival radio for the U.S. Joint Forces.
These efforts are a demonstration of our dedication to equal employment opportunities that foster and support a principled, productive and inclusive work environment. We stand for basic universal human rights, including that employment must be voluntary.
General Dynamics works hard to promote an environment where employees feel respected and empowered to contribute effectively. We are dedicated to workplaces that foster and support a principled, fair and productive environment. We stand for basic universal human rights, including that employment must be voluntary.
We continue to expand the mission capabilities of this platform, including an air defense mission package (Sergeant Stout, formerly known as M-SHORAD), a state-of-the-art electronic warfare suite, a high-energy laser, a high-power microwave and several command post options.
These include an air defense mission package, as found on the Sergeant Stout, a state-of-the-art electronic warfare suite, a high-energy laser, a high-power microwave and several Army command post options. Our work on new ground combat vehicles is ongoing with two additional transformational vehicles in development.
Land Systems is the sole-source producer of two foundational products central to the U.S. Army’s warfighting capabilities — the Abrams main battle tank and Stryker wheeled combat vehicle. Both of these platforms are core components of the multi-domain, joint war fight in practice today and envisioned on the battlefield of the future.
Both platforms are core components of the multi-domain, joint war fight in practice today and envisioned on the battlefield of the future. We continue to maximize the capability, effectiveness and lethality of the Abrams tank.
We are committed to continual investment in R&D to create new aircraft that consistently broaden customer offerings while raising the bar for safety and performance. The result is the unprecedented development of an all-new lineup of the most technologically advanced business jet aircraft in the world.
Since acquiring Gulfstream more than 25 years ago, we have made significant investments in research and development (R&D), state-of-the-art manufacturing facilities, and our global maintenance and support network. We are committed to continual investment in R&D to create new aircraft that consistently broaden customer offerings while raising the bar for safety and performance.
Our disciplined and consistent approach to new product development has allowed us to introduce repeatedly first-to-market capabilities that set industry standards for safety, performance, quality, speed and comfort. Product enhancement and development efforts include initiatives in advanced avionics, composites, flight-control and vision systems, acoustics, and cabin technologies. Gulfstream designs, develops and manufactures aircraft in Savannah, Georgia, including all large-cabin models.
The aircraft will replace the G280 and feature signature Gulfstream Panoramic Windows as well as an all-new Harmony Flight Deck, which includes next-generation avionics to enhance safety and operational efficiency. Our disciplined and consistent approach to new product development has allowed us to repeatedly introduce first-to-market capabilities that set industry standards for safety, performance, quality, speed and comfort.
In addition, Land Systems is producing 66 additional LAVs on the Light Armoured Vehicle Reconnaissance Surveillance System (LRSS) program that are equipped with state of the art surveillance suites. Land Systems is also producing the British Army’s Ajax armored fighting vehicle, a next-generation, medium-weight tracked combat vehicle.
Land Systems is also producing the British Army’s Ajax armored fighting vehicle, a next-generation, medium-weight tracked combat vehicle, the first fully digitized ground combat vehicle in the U.K. Armed Forces.
At the center of these efforts is GDIT’s development of secure, tailorable and scalable digital solutions, known as our Digital 12 Accelerators. These Digital Accelerators are at the forefront of technological trends and are designed to accelerate customers’ adoption and integration of advanced technologies to meet unique mission needs.
These Digital Accelerators are at the forefront of technological trends and are designed to accelerate customers’ adoption and 13 integration of advanced technologies to meet unique mission needs. With technology evolving at an unprecedented pace, GDIT operates a national network of technology innovation labs that enable rapid development, testing and fielding of prototypes alongside commercial technology partners.
The G800 is Gulfstream’s longest-range aircraft, with an 8,000 nautical mile range at Mach 0.85. The G800 replaces the G650 and G650ER, which currently operate in 55 countries with more than 580 aircraft of this family in service.
It replaces the G650 and G650ER, which currently operate in 55 countries with more than 595 aircraft of this family in service. The G800 features Gulfstream’s Symmetry Flight Deck—the industry’s most technologically advanced flight deck—industry-leading high-speed efficiency, and enhanced safety capabilities. The ultra-long-range, ultra-large-cabin G700 entered service in 2024.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeMoreover, new laws, regulations or standards, or changes to existing ones, can increase our performance and compliance costs and reduce our revenue and earnings. 21 Our Aerospace segment is subject to changing customer demand for business aircraft.
Biggest changeMoreover, new laws, regulations, executive orders or standards, or changes to existing ones, can increase our legal, reputation or operational risk, performance and compliance costs and reduce our revenue and earnings. 22 Our Aerospace segment is subject to changing customer demand for business aircraft.
Decreases in U.S. government defense and other spending or changes in spending allocation or priorities could result in one or more of our programs being reduced, delayed or terminated, which could impact our financial performance. 20 For additional information relating to U.S. government budget and funding matters, see the Business Environment section of Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7.
Decreases in U.S. government defense and other spending or changes in spending allocation or priorities could result in one or more of our programs being reduced, delayed or terminated, which could impact our financial performance. 21 For additional information relating to U.S. government budget and funding matters, see the Business Environment section of Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7.
Accordingly, our performance depends in part on our ability to continue to develop, manufacture and provide innovative products and services and bring those offerings to market quickly at 22 cost-effective prices. Many of our new products must meet extensive and time-consuming regulatory requirements that are often outside our control and may result in unanticipated delays.
Accordingly, our performance depends in part on our ability to continue to develop, manufacture and provide innovative products and services and bring those offerings to market quickly at 23 cost-effective prices. Many of our new products must meet extensive and time-consuming regulatory requirements that are often outside our control and may result in unanticipated delays.
However, future threats could have a materially adverse impact on our company by, among other things, causing harm to our business, financial condition, results of operations or 24 reputation; disrupting our operations; exposing us to potential liability, regulatory actions and loss of business; and challenging our eligibility for future work on sensitive or classified systems for government customers.
However, future threats could have a materially adverse impact on our company by, among other things, causing harm to our business, financial condition, results of operations or 25 reputation; disrupting our operations; exposing us to potential liability, regulatory actions and loss of business; and challenging our eligibility for future work on sensitive or classified systems for government customers.
Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors, including the risk factors discussed in this Form 10-K. 25 All forward-looking statements speak only as of the date of this report or, in the case of any document incorporated by reference, the date of that document.
Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors, including the risk factors discussed in this Form 10-K. 26 All forward-looking statements speak only as of the date of this report or, in the case of any document incorporated by reference, the date of that document.
If we do not satisfy these financial or offset requirements, our future revenue and earnings may be materially adversely affected. 23 Risks Relating to Our Acquisitions and Similar Investment Activities We have made and expect to continue to make investments, including acquisitions and joint ventures, that involve risks and uncertainties.
If we do not satisfy these financial or offset requirements, our future revenue and earnings may be materially adversely affected. 24 Risks Relating to Our Acquisitions and Similar Investment Activities We have made and expect to continue to make investments, including acquisitions and joint ventures, that involve risks and uncertainties.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeSee Item 1A—Risk Factors above for additional discussion of various risks related to cybersecurity that are reasonably likely to have a material impact on our company, including our business strategy, results of operations or financial condition. 26
Biggest changeSee Item 1A—Risk Factors above for additional discussion of various risks related to cybersecurity that are reasonably likely to have a material impact on our company, including our business strategy, results of operations or financial condition. 27

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeLeonards, United Kingdom. A summary of floor space by segment on December 31, 2024, follows: (Square feet in millions) Company-owned Facilities Leased Facilities Government-owned Facilities Total Aerospace 5.5 10.1 0.5 16.1 Marine Systems 9.0 5.4 — 14.4 Combat Systems 6.7 6.6 4.9 18.2 Technologies 2.2 7.7 0.9 10.8 Total square feet 23.4 29.8 6.3 59.5
Biggest changeLeonards, United Kingdom. A summary of floor space by segment on December 31, 2025, follows: (Square feet in millions) Company-owned Facilities Leased Facilities Government-owned Facilities Total Aerospace 7.2 10.1 0.5 17.8 Marine Systems 10.1 5.4 — 15.5 Combat Systems 6.2 6.5 4.9 17.6 Technologies 2.3 7.2 0.9 10.4 Total square feet 25.8 29.2 6.3 61.3
On December 31, 2024, our segments had material operations at the following locations: • Aerospace – Mesa and Scottsdale, Arizona; Van Nuys, California; West Palm Beach, Florida; Brunswick and Savannah, Georgia; Cahokia, Illinois; Westfield, Massachusetts; Teterboro, New Jersey; New York, New York; Tulsa, Oklahoma; Dallas and Fort Worth, Texas; Appleton, Wisconsin; Sydney, Australia; Mexicali, Mexico; Singapore; Basel, Switzerland; Farnborough, United Kingdom. • Marine Systems – San Diego, California; Groton and New London, Connecticut; Jacksonville, Florida; Bath and Brunswick, Maine; Middletown and North Kingstown, Rhode Island; Norfolk and Portsmouth, Virginia; Bremerton, Washington; Mexicali, Mexico. • Combat Systems – Anniston, Alabama; East Camden, Arkansas; Healdsburg, California; Crawfordsville, St.
On December 31, 2025, our segments had material operations at the following locations: • Aerospace – Mesa and Scottsdale, Arizona; Van Nuys, California; West Palm Beach, Florida; Brunswick and Savannah, Georgia; Cahokia, Illinois; Westfield, Massachusetts; Teterboro, New Jersey; New York, New York; Tulsa, Oklahoma; Dallas and Fort Worth, Texas; Appleton, Wisconsin; Sydney, Australia; Mexicali, Mexico; Singapore; Basel, Switzerland; Farnborough, United Kingdom. • Marine Systems – San Diego, California; Groton, New London and Waterford, Connecticut; Jacksonville, Florida; Bath and Brunswick, Maine; Middletown and North Kingstown, Rhode Island; Norfolk and Portsmouth, Virginia; Bremerton, Washington; Mexicali, Mexico. • Combat Systems – Anniston, Alabama; East Camden, Arkansas; Healdsburg, California; Crawfordsville, St.
Petersburg and Tallahassee, Florida; Marion, Illinois; Saco, Maine; Sterling Heights, Michigan; Lincoln, Nebraska; Lima, Ohio; Eynon, Scranton and Wilkes-Barre, Pennsylvania; Garland and Mesquite, Texas; Joint Base Lewis-McChord, Washington; Vienna, Austria; Le Gardeur, London and Valleyfield, Canada; Kaiserslautern, Germany; Madrid, Sevilla and Trubia, Spain; Bürglen, Kreuzlingen and Tägerwilen, Switzerland; Merthyr Tydfil, United Kingdom. • Technologies – Daleville, Alabama; Scottsdale, Arizona; Orlando, Florida; Bossier City, Louisiana; Annapolis Junction, Maryland; Dedham, Pittsfield and Taunton, Massachusetts; Bloomington, Minnesota; Rensselaer, New York; Greensboro, North Carolina; Chesapeake and Marion, Virginia; multiple locations in Northern Virginia; Ottawa, Canada; Oakdale and St.
Petersburg and Tallahassee, Florida; Marion, Illinois; Saco, Maine; Sterling Heights, Michigan; Lincoln, Nebraska; Lima, Ohio; Eynon, Scranton and Wilkes-Barre, Pennsylvania; Mesquite, Texas; Joint Base Lewis-McChord, Washington; Vienna, Austria; Le Gardeur, London and Valleyfield, Canada; Kaiserslautern and Neubrandenburg, Germany; Madrid, Sevilla and Trubia, Spain; Bürglen, Kreuzlingen and Tägerwilen, Switzerland; Merthyr Tydfil, United Kingdom. • Technologies – Daleville, Alabama; Scottsdale, Arizona; Orlando, Florida; Bossier City, Louisiana; Annapolis Junction, Maryland; Dedham, Pittsfield and Taunton, Massachusetts; Bloomington, Minnesota; Albany, New York; Greensboro, North Carolina; Chesapeake and Marion, Virginia; multiple locations in Northern Virginia; Ottawa, Canada; Oakdale and St.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeBurns – Vice President of the company and President of Gulfstream Aerospace Corporation since July 2015; Vice President of the company since February 2014; President, Product Support of Gulfstream Aerospace Corporation, June 2008 - June 2015 65 Danny Deep – Executive Vice President, Combat Systems, since April 2024; Vice President of the company and President of General Dynamics Land Systems, April 2020 - April 2024; Chief Operating Officer of General Dynamics Land Systems, September 2018 - April 2020; Vice President of General Dynamics Land Systems – Canada, January 2011 - September 2018 55 Gregory S.
Biggest changeBurns – Executive Vice President of the company since June 2025; President of Gulfstream Aerospace Corporation since July 2015; Vice President of the company, February 2014 - June 2025; President, Product Support of Gulfstream Aerospace Corporation, June 2008 - June 2015 66 Danny Deep – President of the company since December 2025; Executive Vice President, Global Operations, June 2025 - December 2025; Executive Vice President, Combat Systems, April 2024 - June 2025; Vice President of the company and President of General Dynamics Land Systems, April 2020 - April 2024; Chief Operating Officer of General Dynamics Land Systems, September 2018 - April 2020; Vice President of General Dynamics Land Systems – Canada, January 2011 - September 2018 56 Gregory S.
Novakovic – Chairman and Chief Executive Officer since January 2013; President and Chief Operating Officer, May 2012 - December 2012; Executive Vice President, Marine Systems, May 2010 - May 2012; Senior Vice President, Planning and Development, July 2005 - May 2010; Vice President, Strategic Planning, October 2002 - July 2005 67 David Paddock – Vice President of the company and President of General Dynamics Land Systems since April 2024; Vice President of the company and President of Jet Aviation, July 2019 - April 2024; Senior Vice President, Regional Operations USA of Jet Aviation, January 2015 - July 2019 57 Mark Rayha – Vice President of the company and President of Electric Boat Corporation since December 2024; Senior Vice President and Chief Operating Officer of Electric Boat Corporation, September 2023 - December 2024; Vice President and Chief Financial Officer of Electric Boat Corporation, July 2021 - September 2023; Vice President, Finance of Electric Boat Corporation, January 2020 - July 2021; Vice President and Chief Financial Officer of General Dynamics Mission Systems, January 2015 - January 2020 58 Robert E.
Novakovic – Chairman and Chief Executive Officer since January 2013; President and Chief Operating Officer, May 2012 - December 2012; Executive Vice President, Marine Systems, May 2010 - May 2012; Senior Vice President, Planning and Development, July 2005 - May 2010; Vice President, Strategic Planning, October 2002 - July 2005 68 David Paddock – Vice President of the company and President of General Dynamics Land Systems since April 2024; Vice President of the company and President of Jet Aviation, July 2019 - April 2024; Senior Vice President, Regional Operations USA of Jet Aviation, January 2015 - July 2019 58 Mark Rayha – Vice President of the company and President of Electric Boat Corporation since December 2024; Senior Vice President and Chief Operating Officer of Electric Boat Corporation, September 2023 - December 2024; Vice President and Chief Financial Officer of Electric Boat Corporation, July 2021 - September 2023; Vice President, Finance of Electric Boat Corporation, January 2020 - July 2021; Vice President and Chief Financial Officer of General Dynamics Mission Systems, January 2015 - January 2020 59 Robert E.
Brady – Vice President of the company and President of General Dynamics Mission Systems since January 2019; Vice President, Engineering of General Dynamics Mission Systems, January 2015 - December 2018; Vice President, Engineering of General Dynamics C4 Systems, May 2013 - December 2014; Vice President, Assured Communications Systems of General Dynamics C4 Systems, August 2004 - May 2013 62 Mark L.
Brady – Vice President of the company and President of General Dynamics Mission Systems since January 2019; Vice President, Engineering of General Dynamics Mission Systems, January 2015 - December 2018; Vice President, Engineering of General Dynamics C4 Systems, May 2013 - December 2014; Vice President, Assured Communications Systems of General Dynamics C4 Systems, August 2004 - May 2013 63 Mark L.
Kuryea – Senior Vice President and Chief Financial Officer since February 2024; Senior Vice President, Human Resources and Administration, April 2017 - April 2024; Vice President and Controller, September 2011 - March 2017; Chief Financial Officer of General Dynamics Advanced Information Systems, November 2007 - August 2011; Staff Vice President, Internal Audit, March 2004 - October 2007 57 28 William A.
Kuryea – Senior Vice President and Chief Financial Officer since February 2024; Senior Vice President, Human Resources and Administration, April 2017 - April 2024; Vice President and Controller, September 2011 - March 2017; Chief Financial Officer of General Dynamics Advanced Information Systems, November 2007 - August 2011; Staff Vice President, Internal Audit, March 2004 - October 2007 58 William A.
Berg – Senior Vice President, Human Resources and Administration since February 2024; Senior Vice President, Planning and Development, January 2022 - February 2024; Executive Vice President of Princeton Theological Seminary, 2016 - January 2022 53 Christopher J.
Berg – Senior Vice President, Human Resources and Administration since February 2024; Senior Vice President, Planning and Development, January 2022 - February 2024; Executive Vice President of Princeton Theological Seminary, 2016 - January 2022 54 Christopher J.
Gallopoulos – Senior Vice President, General Counsel and Secretary since January 2010; Vice President and Deputy General Counsel, July 2008 - January 2010; Managing Partner of Jenner & Block LLP, January 2005 - June 2008 65 M.
Gallopoulos – Senior Vice President, General Counsel and Secretary since January 2010; Vice President and Deputy General Counsel, July 2008 - January 2010; Managing Partner of Jenner & Block LLP, January 2005 - June 2008 66 M.
Smith – Executive Vice President, Marine Systems, since July 2019; Vice President of the company and President of Jet Aviation, January 2014 - July 2019; Vice President and Chief Financial Officer of Jet Aviation, July 2012 - January 2014 57 PART II
Smith – Executive Vice President, Marine Systems, since July 2019; Vice President of the company and President of Jet Aviation, January 2014 - July 2019; Vice President and Chief Financial Officer of Jet Aviation, July 2012 - January 2014 58 PART II
Moss – Vice President and Controller since April 2017; Staff Vice President, Internal Audit, May 2015 - March 2017; Staff Vice President, Accounting, August 2010 - May 2015 61 Phebe N.
Moss – Vice President and Controller since April 2017; Staff Vice President, Internal Audit, May 2015 - March 2017; Staff Vice President, Accounting, August 2010 - May 2015 62 Phebe N.
Amy Gilliland – Senior Vice President of the company since April 2015; President of General Dynamics Information Technology since September 2017; Deputy for Operations of General Dynamics Information Technology, April 2017 - September 2017; Senior Vice President, Human Resources and Administration, April 2015 - March 2017; Vice President, Human Resources, February 2014 - March 2015; Staff Vice President, Strategic Planning, January 2013 - February 2014; Staff Vice President, Investor Relations, June 2008 - January 2013 50 Kimberly A.
Amy Gilliland – Executive Vice President since June 2025; President of General Dynamics Information Technology since September 2017; Senior Vice President of the company, April 2015 - June 2025; Deputy for Operations of General Dynamics Information Technology, April 2017 - September 2017; Senior Vice President, Human Resources and Administration, April 2015 - March 2017; Vice President, Human Resources, February 2014 - March 2015; Staff Vice President, Strategic Planning, January 2013 - February 2014; Staff Vice President, Investor Relations, June 2008 - January 2013 51 29 Kimberly A.
Aiken – Executive Vice President, Technologies since February 2024; Executive Vice President, Technologies and Chief Financial Officer, January 2023 - February 2024; Senior Vice President and Chief Financial Officer, January 2014 - December 2022; Vice President of the company and Chief Financial Officer of Gulfstream Aerospace Corporation, September 2011 - December 2013; Vice President and Controller, April 2010 - August 2011; Staff Vice President, Accounting, July 2006 - March 2010 52 Shane A.
Aiken – Executive Vice President, Combat Systems and Mission Systems since June 2025; Executive Vice President, Technologies, February 2024 - June 2025; Executive Vice President, Technologies and Chief Financial Officer, January 2023 - February 2024; Senior Vice President and Chief Financial Officer, January 2014 - December 2022; Vice President of the company and Chief Financial Officer of Gulfstream Aerospace Corporation, September 2011 - December 2013; Vice President and Controller, April 2010 - August 2011; Staff Vice President, Accounting, July 2006 - March 2010 53 Shane A.
Set forth below is information regarding our executive officers as of February 7, 2025 (references are to positions with General Dynamics Corporation, unless otherwise noted): Name, Position and Office Age Jason W.
Set forth below is information regarding our executive officers as of January 30, 2026 (references are to positions with General Dynamics Corporation, unless otherwise noted): Name, Position and Office Age Jason W.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeOn December 4, 2024, our board of directors (Board) authorized management to repurchase up to 10 million additional shares of the company’s outstanding stock. We repurchased 4.8 million shares in the fourth quarter of 2024. On December 31, 2024, 9.2 million shares remained authorized by the Board for repurchase.
Biggest changeOn December 31, 2025, 6.8 million shares remained authorized by the Board for repurchase.
For additional information relating to our purchases of common stock during the past three years, see Note N to the Consolidated Financial Statements in Item 8. 30 The following performance graph compares the cumulative total return to shareholders on our common stock, assuming reinvestment of dividends, with similar returns for the Standard & Poor’s 500 Index and the Standard & Poor’s Aerospace & Defense Index, both of which include General Dynamics.
For additional information relating to our purchases of common stock during the past three years, see Note N to the Consolidated Financial Statements in Item 8. 31 The following performance graph compares the cumulative total return to shareholders on our common stock, assuming reinvestment of dividends, with similar returns for the Standard & Poor’s 500 Index and the Standard & Poor’s Aerospace & Defense Index, both of which include General Dynamics.
Cumulative Total Return Based on Investments of $100 Beginning December 31, 2019 (Assumes Reinvestment of Dividends) (in per-share amounts) ITEM 6. [RESERVED] 31
Cumulative Total Return Based on Investments of $100 Beginning December 31, 2020 (Assumes Reinvestment of Dividends) (in per-share amounts) ITEM 6. [RESERVED] 32
ITEM 5. MARKET FOR THE COMPANY’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is listed on the New York Stock Exchange under the trading symbol “GD.” On January 26, 2025, there were approximately 9,000 holders of record of our common stock.
ITEM 5. MARKET FOR THE COMPANY’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is listed on the New York Stock Exchange under the trading symbol “GD.” On December 31, 2025, there were approximately 8,000 holders of record of our common stock.
We did not make any unregistered sales of equity securities in 2024. 29 The following table provides information about our fourth-quarter purchases of equity securities that are registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended: Total Number of Shares Purchased as Part of Publicly Announced Program Maximum Number of Shares That May Yet Be Purchased Under the Program Period Total Number of Shares Average Price per Share Shares Purchased Pursuant to Share Buyback Program 9/30/24-10/27/24 82,385 $ 303.44 82,385 3,942,747 10/28/24-11/24/24 1,285,352 291.74 1,285,352 2,657,395 11/25/24-12/31/24 3,417,696 270.93 3,417,696 9,239,699 Shares Delivered or Withheld Pursuant to Restricted Stock Vesting* 9/30/24-10/27/24 130 299.96 10/28/24-11/24/24 — — 11/25/24-12/31/24 33 279.39 4,785,596 277.08 * Represents shares withheld by, or delivered to, us pursuant to provisions in agreements with recipients of restricted stock granted under our equity compensation plans that allow us to withhold, or the recipient to deliver to us, the number of shares with a fair value equal to the statutory tax withholding due upon vesting of the restricted shares.
We did not make any unregistered sales of equity securities in 2025. 30 The following table provides information about our fourth-quarter purchases of equity securities that are registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended: Total Number of Shares Purchased as Part of Publicly Announced Program Maximum Number of Shares That May Yet Be Purchased Under the Program Period Total Number of Shares Average Price per Share* Shares Purchased Pursuant to Share Buyback Program 9/29/25-10/26/25 — $ — — 6,861,844 10/27/25-11/23/25 — — — 6,861,844 11/24/25-12/31/25 110,533 337.30 110,533 6,751,311 Shares Delivered or Withheld Pursuant to Restricted Stock Vesting** 9/29/25-10/26/25 — — 10/27/25-11/23/25 — — 11/24/25-12/31/25 1,217 336.19 111,750 337.29 * Average price per share excludes excise tax. ** Represents shares withheld by, or delivered to, us pursuant to provisions in agreements with recipients of restricted stock granted under our equity compensation plans that allow us to withhold, or the recipient to deliver to us, the number of shares with a fair value equal to the statutory tax withholding due upon vesting of the restricted shares.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

65 edited+24 added−38 removed57 unchanged
Biggest changeAircraft services revenue was higher in 2024 due to increased customer demand for aircraft maintenance based on established maintenance cycles, a larger installed base and customer flight activity. 35 The increase in the segment’s operating earnings in 2024 consisted of the following: Aircraft manufacturing $ 213 Aircraft services 129 G&A/other expenses (60) Total increase $ 282 Aircraft manufacturing operating earnings increased in 2024 but not at the same rate as revenue, reflecting additional costs associated with the initial deliveries of G700 aircraft due to out of station work caused by supplier quality escapes and late delivery of components.
Biggest changeInitial deliveries of the new G800 largely offset the decrease in G650 revenue with its final deliveries in 2025. Aircraft services revenue was higher in 2025 due to increased customer demand for aircraft maintenance based on established maintenance cycles, a larger installed base and customer flight activity.
Incurred costs represent work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Contract costs include labor, material, overhead and, when appropriate, G&A expenses. Variances in costs recognized from period to period reflect primarily increases and decreases in production or activity levels on individual contracts.
Incurred costs represent work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Contract costs include labor, material, overhead and, when appropriate, G&A expenses. 34 Variances in costs recognized from period to period reflect primarily increases and decreases in production or activity levels on individual contracts.
The process requires numerous assumptions, including the timing of work embedded in our backlog, our performance and profitability under our contracts, our success in securing future business, the appropriate risk-adjusted interest rate used to discount the projected cash flows, and terminal-value growth rates applied to the final year of projected cash flows.
The process requires numerous assumptions, including the timing of work embedded in our backlog, our performance and profitability under our contracts, our success in securing future business, the appropriate risk-adjusted interest rate 48 used to discount the projected cash flows, and terminal-value growth rates applied to the final year of projected cash flows.
We also have an effective shelf registration on file with the Securities and Exchange Commission (SEC) that allows us to access the debt markets. NON-GAAP FINANCIAL MEASURES We emphasize the efficient conversion of net earnings into cash and the deployment of that cash to maximize shareholder returns.
We also have an effective shelf registration on file with the Securities and Exchange Commission (SEC) that allows us to access the debt markets. 45 NON-GAAP FINANCIAL MEASURES We emphasize the efficient conversion of net earnings into cash and the deployment of that cash to maximize shareholder returns.
Additional factors affecting the segment’s earnings and margin include the volume, mix and profitability 33 of services work performed, the market for pre-owned aircraft, and the level of general and administrative (G&A) and net research and development (R&D) costs incurred by the segment.
Additional factors affecting the segment’s earnings and margin include the volume, mix and profitability of services work performed, the market for pre-owned aircraft, and the level of general and administrative (G&A) and net research and development (R&D) costs incurred by the segment.
Net operating profit after taxes is defined as net earnings plus after-tax interest and amortization expense, calculated using the 48 statutory federal income tax rate. Average invested capital is defined as the sum of the average debt and average shareholders’ equity excluding accumulated other comprehensive loss.
Net operating profit after taxes is defined as net earnings plus after-tax interest and amortization expense, calculated using the statutory federal income tax rate. Average invested capital is defined as the sum of the average debt and average shareholders’ equity excluding accumulated other comprehensive loss.
Substantially all of our revenue in the defense segments is recognized over time because control is transferred continuously to our customers. Typically, revenue is recognized over time using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying our performance obligations.
Substantially all of our revenue in the defense segments is recognized over time because control is transferred continuously to our customers. Typically, revenue is recognized over time using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying our 47 performance obligations.
Operating margin increased 10 basis points. REVIEW OF OPERATING SEGMENTS Following is a discussion of operating results and outlook for each of our operating segments. For the Aerospace segment, results are analyzed by specific types of products and services, consistent with how the segment is managed.
Operating margin increased 10 basis points. 35 REVIEW OF OPERATING SEGMENTS Following is a discussion of operating results and outlook for each of our operating segments. For the Aerospace segment, results are analyzed by specific types of products and services, consistent with how the segment is managed.
The preparation of financial statements in accordance with GAAP requires that we make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue 49 and expenses during the reporting period.
The preparation of financial statements in accordance with GAAP requires that we make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period.
Because the parent is a holding company, its cash flow and ability to service its debt, including the outstanding notes, depends on the performance of its subsidiaries and the ability of those subsidiaries to distribute cash to the parent, whether by dividends, loans or otherwise.
Because the parent is a holding company, its cash flow and ability to service its debt, including the outstanding notes, depends on the performance of its subsidiaries and the ability of those subsidiaries to 49 distribute cash to the parent, whether by dividends, loans or otherwise.
Our reporting 50 units are consistent with our operating segments in Note O to the Consolidated Financial Statements in Item 8. We use both qualitative and quantitative approaches when testing goodwill for impairment.
Our reporting units are consistent with our operating segments in Note O to the Consolidated Financial Statements in Item 8. We use both qualitative and quantitative approaches when testing goodwill for impairment.
The following discussion of our financial condition and results of operations for 2024 compared with 2023 should be read in conjunction with our Consolidated Financial Statements included in Item 8, while a discussion of 2023 compared with 2022 can be found in Item 7 of our annual report on Form 10-K for the year ended December 31, 2023.
The following discussion of our financial condition and results of operations for 2025 compared with 2024 should be read in conjunction with our Consolidated Financial Statements included in Item 8, while a discussion of 2024 compared with 2023 can be found in Item 7 of our annual report on Form 10-K for the year ended December 31, 2024.
Our capital deployment priorities include investments in our business infrastructure, products and services to drive long-term growth, a predictable dividend, strategic acquisitions and opportunistic share repurchases. We believe cash generated by operating activities, supplemented by commercial paper issuances, is sufficient to satisfy our short- and long-term liquidity needs.
Our capital deployment priorities include investments in our business infrastructure, products and services to drive long-term growth, a predictable dividend, strategic acquisitions and opportunistic share repurchases primarily to address dilution. We believe cash generated by operating activities, supplemented by commercial paper issuances, is sufficient to satisfy our short- and long-term liquidity needs.
Other obligations, such as scheduled principal and interest payments on our fixed-rate notes, and scheduled payments in accordance with our lease agreements are expected to be satisfied using cash generated from operations. See Notes J and K to the Consolidated Financial Statements in Item 8 for additional information.
Other obligations, such as scheduled principal and interest payments on our fixed-rate notes, and scheduled payments in accordance with our lease agreements are expected to be satisfied using cash generated from operations or refinancing of principal payments. See Notes J and K to the Consolidated Financial Statements in Item 8 for additional information.
BACKLOG AND ESTIMATED POTENTIAL CONTRACT VALUE Our total backlog, including funded and unfunded portions, was $90.6 billion on December 31, 2024, compared to $93.6 billion at the end of 2023. Our total backlog is equal to our remaining performance obligations under contracts with customers as discussed in Note B to the Consolidated Financial Statements in Item 8.
BACKLOG AND ESTIMATED POTENTIAL CONTRACT VALUE Our total backlog, including funded and unfunded portions, was $118 billion on December 31, 2025, compared to $90.6 billion at the end of 2024. Our total backlog is equal to our remaining performance obligations under contracts with customers as discussed in Note B to the Consolidated Financial Statements in Item 8.
Additionally, we evaluate the reasonableness of each reporting unit’s fair value by comparing the fair value to peer companies and recent relevant market transactions. In the fourth quarter of 2024, we completed qualitative assessments for each of our reporting units.
Additionally, we evaluate the reasonableness of each reporting unit’s fair value by comparing the fair value to peer companies and recent relevant market transactions. In the fourth quarter of 2025, we completed qualitative assessments of goodwill for each of our reporting units.
We expect G&A expenses as a percentage of revenue in 2025 to be generally consistent with 2024. OTHER, NET Net other income was $68 in 2024 and $82 in 2023 and represents primarily the non-service components of pension and other post-retirement benefits. In 2025, we expect net other income to be approximately $50.
We expect G&A expenses as a percentage of revenue in 2026 to be generally consistent with 2025. OTHER, NET Net other income was $61 in 2025 and $68 in 2024 and represents primarily the non-service components of pension and other post-retirement benefits. In 2026, we expect net other income to be approximately $50.
The actual amount of funding received in the future may be higher or lower than our estimate of potential contract value. Total backlog in our defense segments was $70.9 billion on December 31, 2024, compared with $73.2 billion at year-end 2023. In 2024, the total book-to-bill ratio in our defense segments was 1-to-1.
The actual amount of funding received in the future may be higher or lower than our estimate of potential contract value. Total backlog in our defense segments was $96.2 billion on December 31, 2025, compared with $70.9 billion at year-end 2024. In 2025, the total book-to-bill ratio in our defense segments was 1.6-to-1.
Estimated potential contract value in our defense segments was $52.2 billion on December 31, 2024, up 37.8% compared with $37.9 billion at year-end 2023. 41 MARINE SYSTEMS The Marine Systems segment’s backlog consists of very long-term submarine and surface ship construction programs, as well as numerous engineering and repair contracts.
Estimated potential contract value in our defense segments was $59.8 billion on December 31, 2025, up 14.4% compared with $52.2 billion at year-end 2024. 41 MARINE SYSTEMS The Marine Systems segment’s backlog consists of very long-term submarine and surface ship construction programs, as well as numerous engineering and repair contracts.
The effect of a 25-basis-point increase or decrease in the discount rate assumption on the December 31, 2024, pension benefit obligation is ($261) or $272, respectively. 51 As described in Note S to the Consolidated Financial Statements in Item 8, our contractual arrangements with the U.S. government provide for the recovery of benefit costs for our government retirement plans.
The effect of a 25-basis-point increase or decrease in the discount rate assumption on the December 31, 2025, pension benefit obligation is ($260) or $271, respectively. As described in Note S to the Consolidated Financial Statements in Item 8, our contractual arrangements with the U.S. government provide for the recovery of benefit costs for our government retirement plans.
On December 31, 2024, we had no commercial paper outstanding, but we maintain the ability to access the commercial paper market in the future. Separately, we have a $4 billion committed bank credit facility for general corporate purposes and working capital needs and to support our commercial paper issuances.
On December 31, 2025, we had no commercial paper outstanding, but we maintain the ability to access the commercial paper market in the future. In addition, we have a $5 billion committed bank credit facility for general corporate purposes and working capital needs and to support our commercial paper issuances.
AEROSPACE Aerospace funded backlog represents primarily new aircraft orders for which we have definitive purchase contracts and deposits from customers. Unfunded backlog consists of agreements to provide future aircraft maintenance and support services. The Aerospace segment ended 2024 with backlog of $19.7 billion.
AEROSPACE Aerospace funded backlog represents primarily new aircraft orders for which we have definitive purchase contracts and deposits from customers. Unfunded backlog consists of agreements to provide future aircraft maintenance and support services. The Aerospace segment ended 2025 with backlog of $21.8 billion.
INVESTING ACTIVITIES Cash used by investing activities was $953 in 2024 and $941 in 2023. Our investing activities include cash paid for capital expenditures and business acquisitions; purchases, sales and maturities of marketable securities; and proceeds from asset sales. Capital Expenditures. The primary use of cash for investing activities in both years was capital expenditures.
INVESTING ACTIVITIES Cash used by investing activities was $1.3 billion in 2025 and $953 in 2024. Our investing activities include cash paid for capital expenditures; business acquisitions; purchases, sales and maturities of marketable securities; and proceeds from asset sales. Capital Expenditures. The primary use of cash for investing activities in both years was capital expenditures.
An additional potential source of capital is the issuance of long-term debt in capital market transactions. 46 We ended 2024 with a cash and equivalents balance of $1.7 billion compared with $1.9 billion at the end of 2023.
An additional potential source of capital is the issuance of long-term debt in capital market transactions. We ended 2025 with a cash and equivalents balance of $2.3 billion compared with $1.7 billion at the end of 2024.
On March 6, 2024, our board of directors (Board) declared an increased quarterly dividend of $1.42 per share, the 27th consecutive annual increase. Previously, the Board had increased the quarterly dividend to $1.32 per share in March 2023. Cash dividends paid were $1.5 billion in 2024 and $1.4 billion in 2023. Share Repurchases.
On March 5, 2025, our board of directors (Board) declared an increased quarterly dividend of $1.50 per share, the 28th consecutive annual increase. Previously, the Board had increased the quarterly dividend to $1.42 per share in March 2024. Cash dividends paid were $1.6 billion in 2025 and $1.5 billion in 2024. Share Repurchases.
In some instances, we require advance payments or deposits from our customers, which help fund our purchase commitments and reduce the risk of customer performance. Additionally, we have significant liabilities under our defined benefit retirement plans.
In some instances, we receive advance payments or deposits from our customers, which help fund our purchase commitments and reduce collection risk. Additionally, we have significant liabilities under our defined benefit retirement plans.
The following table reconciles free cash flow with net cash from operating activities, as classified on the Consolidated Statement of Cash Flows in Item 8: Year Ended December 31 2024 2023 2022 Net cash provided by operating activities $ 4,112 $ 4,710 $ 4,579 Capital expenditures (916) (904) (1,114) Free cash flow $ 3,196 $ 3,806 $ 3,465 Cash flows as a percentage of net earnings: Net cash provided by operating activities 109 % 142 % 135 % Free cash flow 85 % 115 % 102 % Return on Invested Capital.
The following table reconciles free cash flow with net cash from operating activities, as classified on the Consolidated Statement of Cash Flows in Item 8: Year Ended December 31 2025 2024 2023 Net cash provided by operating activities $ 5,120 $ 4,112 $ 4,710 Capital expenditures (1,161) (916) (904) Free cash flow $ 3,959 $ 3,196 $ 3,806 Cash flows as a percentage of net earnings: Net cash provided by operating activities 122 % 109 % 142 % Free cash flow 94 % 85 % 115 % Return on Invested Capital.
The following is a discussion of our major operating, investing and financing activities in 2024 and 2023, as classified on the Consolidated Statement of Cash Flows in Item 8: Year Ended December 31 2024 2023 Net cash provided by operating activities $ 4,112 $ 4,710 Net cash used by investing activities (953) (941) Net cash used by financing activities (3,369) (3,094) OPERATING ACTIVITIES Cash provided by operating activities was $4.1 billion in 2024 compared with $4.7 billion in 2023 .
The following is a discussion of our major operating, investing and financing activities in 2025 and 2024, as classified on the Consolidated Statement of Cash Flows in Item 8: Year Ended December 31 2025 2024 Net cash provided by operating activities $ 5,120 $ 4,112 Net cash used by investing activities (1,284) (953) Net cash used by financing activities (3,190) (3,369) 44 OPERATING ACTIVITIES Cash provided by operating activities was $5.1 billion in 2025 compared with $4.1 billion in 2024 .
ROIC is calculated as follows: Year Ended December 31 2024 2023 2022 Net earnings $ 3,782 $ 3,315 $ 3,390 After-tax interest expense 310 315 309 After-tax amortization expense 191 201 235 Net operating profit after taxes $ 4,283 $ 3,831 $ 3,934 Average invested capital $ 32,451 $ 31,258 $ 31,260 Return on invested capital 13.2 % 12.3 % 12.6 % CASH REQUIREMENTS The following is a discussion of how we expect to meet the future cash requirements from known contractual and other obligations.
ROIC is calculated as follows: Year Ended December 31 2025 2024 2023 Net earnings $ 4,210 $ 3,782 $ 3,315 After-tax interest expense 318 310 315 After-tax amortization expense 193 191 201 Net operating profit after taxes $ 4,721 $ 4,283 $ 3,831 Average invested capital $ 33,212 $ 32,451 $ 31,258 Return on invested capital 14.2 % 13.2 % 12.3 % 46 CASH REQUIREMENTS The following is a discussion of how we expect to meet the future cash requirements from known contractual and other obligations.
Financing activities include the use of cash for repurchases of common stock, payment of dividends, and debt and commercial paper repayments. Our financing activities also include proceeds received from debt and commercial paper issuances and employee stock option exercises. Dividends.
Financing activities include the use of cash for payment of dividends, settlement of finance lease liabilities, debt and commercial paper repayments, and some repurchase of common stock. Our financing activities also include proceeds received from debt and commercial paper issuances and employee stock option exercises. Dividends.
Capital expenditures were $916 in 2024 and $904 in 2023. Capital expenditures include equipment and facility enhancements to support new and existing programs across our businesses. FINANCING ACTIVITIES Cash used by financing activities was $3.4 billion in 2024 and $3.1 billion in 2023.
Capital expenditures were up almost 30% to $1.2 billion in 2025 versus $916 in 2024. Capital expenditures include equipment and facility enhancements to support new and existing programs across our businesses. FINANCING ACTIVITIES Cash used by financing activities was $3.2 billion in 2025 and $3.4 billion in 2024.
INTEREST, NET Net interest expense was $324 in 2024 and $343 in 2023. See Note K to the Consolidated Financial Statements in Item 8 for additional information regarding our debt obligations, including interest rates. We expect 2025 net interest expense to be consistent with 2024.
INTEREST, NET Net interest expense was $314 in 2025 and $324 in 2024. See Note K to the Consolidated Financial Statements in Item 8 for additional information regarding our debt obligations, including interest rates.
CONSOLIDATED OVERVIEW 2024 IN REVIEW • Strong operating performance: ◦ Revenue of $47.7 billion, an increase of 12.9% from 2023 ◦ Operating earnings of $4.8 billion, an increase of 13% from 2023, with sequential growth throughout the year ◦ Diluted earnings per share of $13.63, up 13.4% from 2023 ◦ Cash provided by operating activities of $4.1 billion, or 109% of net earnings • Backlog of $90.6 billion, supporting our long-term growth expectations: ◦ Strong Gulfstream aircraft order activity, including orders across all aircraft models ◦ Several significant contract awards received in our defense segments, including $3.7 billion of combined awards from the U.S.
CONSOLIDATED OVERVIEW 2025 IN REVIEW • Strong operating performance: ◦ Revenue of $52.6 billion, an increase of 10.1% from 2024 ◦ Operating earnings of $5.4 billion, an increase of 11.7% from 2024, with sequential growth throughout the year ◦ Diluted earnings per share of $15.45, up 13.4% from 2024 ◦ Cash provided by operating activities of $5.1 billion, or 122% of net earnings • Backlog of $118 billion, an increase of 30% from 2024, supports our long-term growth expectations: ◦ Strong Gulfstream aircraft order activity, including orders across all aircraft models ◦ Several significant contract awards received in our defense segments, including $20.1 billion of combined awards from the U.S.
We believe free cash flow is a useful measure for investors because it portrays our ability to generate cash from our businesses for purposes such as repaying debt, funding business acquisitions, repurchasing our common stock and paying dividends. We use free cash flow to assess the quality of our earnings and as a key performance measure in evaluating management.
We believe free cash flow is a useful measure for investors because it portrays our ability to generate cash from our businesses for purposes such as repaying debt, funding business acquisitions, paying dividends and repurchasing our common stock to cover dilution.
Ship services revenue increased due to higher volume on the Columbia-class submarine program. The primary drivers of the increase in service operating costs were the changes in volume on the programs described above. G&A EXPENSES As a percentage of revenue, G&A expenses decreased to 5.4% in 2024 compared with 5.7% in 2023 due to growth in revenue.
The primary drivers of the increase in service operating costs were the changes in volume on the programs described above. G&A EXPENSES As a percentage of revenue, G&A expenses decreased to 4.9% in 2025 compared with 5.4% in 2024 due to growth in revenue.
Navy ship engineering, repair and other services 357 Total increase $ 1,882 Revenue from U.S. Navy ship construction and engineering was up in 2024 due primarily to increased volume on the Columbia-class and Virginia-class submarine programs.
Navy ship construction $ 2,213 U.S. Navy ship engineering, repair and other services 167 Total increase $ 2,380 Revenue from U.S. Navy ship construction was up in 2025 due primarily to increased volume on Virginia-class and Columbia-class submarine construction.
The Combat Systems segment’s operating margin increased 30 basis points compared with 2023 driven by favorable contract mix. 2025 Outlook We expect the Combat Systems segment’s 2025 revenue to increase to approximately $9.1 billion with operating margin of approximately 14.5%.
The Combat Systems segment’s operating margin increased 20 basis points compared with 2024 driven by favorable program mix. 37 2026 Outlook We expect the Combat Systems segment’s 2026 revenue to increase to approximately $9.6-$9.7 billion with operating margin of approximately 14.1%.
Corporate operating costs are expected to be approximately $150 in 2025.
Corporate operating costs are expected to be approximately $160 in 2026.
The vehicle programs are generally long-term franchise programs, while the weapons systems and munitions programs tend to be shorter-term in nature. The segment’s backlog was up 16.8% from year-end 2023 to $17 billion. The segment’s estimated potential contract value was $8.6 billion on December 31, 2024, compared with $6.2 billion at year-end 2023.
The vehicle programs are generally long-term franchise programs, while the weapon systems and munitions programs tend to be shorter-term in nature. The segment’s backlog was $27.2 billion on December 31, 2025, up 60.3% from $17 billion at year-end 2024.
STATEMENT OF EARNINGS INFORMATION Year Ended December 31 2024 Revenue $ 18,701 Operating costs and expenses, excluding G&A (16,638) Net earnings 785 52 BALANCE SHEET INFORMATION December 31, 2024 December 31, 2023 Cash and equivalents $ 474 $ 986 Other current assets 5,187 5,012 Noncurrent assets 4,841 4,506 Total assets $ 10,502 $ 10,504 Short-term debt and current portion of long-term debt $ 1,500 $ 503 Other current liabilities 3,016 2,890 Long-term debt 7,210 8,700 Other noncurrent liabilities 3,170 3,281 Total liabilities $ 14,896 $ 15,374 The summarized balance sheet information presented above includes the funded status of the company’s primary qualified U.S. government pension plans as the parent has the ultimate obligation for the plans.
STATEMENT OF EARNINGS INFORMATION Year Ended December 31 2025 Revenue $ 20,716 Operating costs and expenses, excluding G&A (18,476) Net earnings 839 BALANCE SHEET INFORMATION December 31, 2025 December 31, 2024 Cash and equivalents $ 482 $ 474 Other current assets 5,405 5,187 Noncurrent assets 5,403 4,841 Total assets $ 11,290 $ 10,502 Short-term debt and current portion of long-term debt $ 1,003 $ 1,500 Other current liabilities 3,029 3,016 Long-term debt 6,955 7,210 Other noncurrent liabilities 2,835 3,170 Total liabilities $ 13,822 $ 14,896 The summarized balance sheet information presented above includes the funded status of the company’s primary qualified U.S. government pension plans as the parent has the ultimate obligation for the plans. 50
Overall, the segment’s margin increased 30 basis points compared with 2023 due to strong operating performance. 37 2025 Outlook We expect the Technologies segment’s 2025 revenue to increase to approximately $13.5 billion with operating margin of approximately 9.2%. CORPORATE Corporate operating costs totaled $139 in 2024 and $160 in 2023 and consisted primarily of equity-based compensation expense.
Overall, the segment’s margin decreased 10 basis points compared with 2024. 2026 Outlook We expect the Technologies segment’s 2026 revenue to increase to approximately $13.8 billion with operating margin of approximately 9.2%. CORPORATE Corporate operating costs totaled $175 in 2025 and $139 in 2024 and consisted of equity-based compensation expense and other miscellaneous expenses.
Demand for Gulfstream aircraft remains strong across customer types and geographic regions, generating orders from public and privately held companies, individuals, and governments around the world.
On December 31, 2025, estimated potential contract value in the Aerospace segment was $1.1 billion. Demand for Gulfstream aircraft remains strong across customer types and geographic regions, generating orders from public and privately held companies, individuals, and governments around the world.
Geographically, U.S. customers represented 54% of the segment’s orders in 2024 and 56% of the segment’s backlog on December 31, 2024, demonstrating continued strong domestic demand. 40 The following represents Gulfstream aircraft (in units) in backlog by region on December 31, 2024: DEFENSE SEGMENTS The total backlog in our defense segments represents the estimated remaining sales value of work to be performed under firm contracts.
The following represents Gulfstream aircraft (in units) in backlog by region on December 31, 2025: DEFENSE SEGMENTS The total backlog in our defense segments represents the estimated remaining sales value of work to be performed under firm contracts.
RESULTS OF OPERATIONS INTRODUCTION The following paragraphs explain how we recognize revenue and operating costs in our operating segments and the terminology we use to describe our operating results.
In addition, we expect the growing installed base of aircraft will continue to lead to increased demand for global aircraft services. RESULTS OF OPERATIONS INTRODUCTION The following paragraphs explain how we recognize revenue and operating costs in our operating segments and the terminology we use to describe our operating results.
The contract including options has a maximum potential value of $345. 45 The following represents the Technologies segment’s total estimated contract value by customer on December 31, 2024: LIQUIDITY AND CAPITAL RESOURCES We place a strong emphasis on cash flow generation, which is underpinned by an operating discipline focused on cost control and working capital management.
Several significant contract awards in the Technologies segment leverage the Digital Accelerator portfolio of solutions in cyber, AI, cloud services and digital modernization. 43 The following represents the Technologies segment’s total estimated contract value by customer on December 31, 2025: LIQUIDITY AND CAPITAL RESOURCES We place a strong emphasis on cash flow generation, which is underpinned by an operating discipline focused on cost control and working capital management.
TECHNOLOGIES Year Ended December 31 2024 2023 Variance Revenue $ 13,127 $ 12,922 $ 205 1.6 % Operating earnings 1,260 1,202 58 4.8 % Operating margin 9.6 % 9.3 % Operating Results The increase in the Technologies segment’s revenue in 2024 consisted of the following: Information technology (IT) services $ 302 C5ISR* solutions (97) Total increase $ 205 * Command, control, communications, computers, cyber, intelligence, surveillance and reconnaissance The Technologies segment’s revenue increased in 2024 due primarily to strong demand for IT services, including the ramp-up of new programs, offset partially by C5ISR solutions program timing and the ramp-down of legacy programs.
TECHNOLOGIES Year Ended December 31 2025 2024 Variance Revenue $ 13,471 $ 13,127 $ 344 2.6 % Operating earnings 1,277 1,260 17 1.3 % Operating margin 9.5 % 9.6 % Operating Results The increase in the Technologies segment’s revenue in 2025 consisted of the following: Information technology (IT) services $ 296 C5ISR* solutions 48 Total increase $ 344 * Command, control, communications, computers, cyber, intelligence, surveillance and reconnaissance The Technologies segment’s revenue increased in 2025 due primarily to demand for IT services.
PROVISION FOR INCOME TAX, NET Our effective tax rate was 16.7% in 2024 and 16.8% in 2023. For further discussion, including a reconciliation of our effective tax rate from the statutory federal rate, see Note D to the Consolidated Financial Statements in Item 8.
For further discussion, including a reconciliation of our effective tax rate from the statutory federal rate, see Note D to the Consolidated Financial Statements in Item 8. For 2026, we expect a full-year effective tax rate of approximately 17.5%.
Therefore, our estimated potential contract value of $34 billion is an important indicator of future orders and revenue. In 2024, approximately 75% of the segment’s orders were from additional work on IDIQ contracts or the exercise of options.
These contracts can be shorter-cycle or span multiple years, but commonly include a smaller, initially funded order. Therefore, our estimated potential contract value of $33.3 billion is an important indicator of future orders and revenue. In 2025, approximately 85% of the segment’s orders were from additional work on IDIQ contracts or the exercise of options.
Navy for advance procurement and other work for the Virginia-class submarine program 34 Year Ended December 31 2024 2023 Variance Revenue $ 47,716 $ 42,272 $ 5,444 12.9 % Operating costs and expenses (42,920) (38,027) (4,893) 12.9 % Operating earnings 4,796 4,245 551 13.0 % Operating margin 10.1 % 10.0 % Our consolidated revenue increased in 2024 driven by growth across all segments, including double digit percentage growth in our Aerospace and Marine Systems segments.
Navy for the Virginia-class and Columbia-class submarine programs and $9.2 billion of combined awards for wheeled and tracked vehicles for international customers Year Ended December 31 2025 2024 Variance Revenue $ 52,550 $ 47,716 $ 4,834 10.1 % Operating costs and expenses (47,194) (42,920) (4,274) 10.0 % Operating earnings 5,356 4,796 560 11.7 % Operating margin 10.2 % 10.1 % Our consolidated revenue increased in 2025 driven by growth across all segments, including double-digit percentage growth in our Aerospace and Marine Systems segments.
Our total estimated contract value, which combines total backlog with estimated potential contract value, was $144 billion on December 31, 2024. 39 The following table details the backlog and estimated potential contract value of each segment at the end of 2024 and 2023: Funded Unfunded Total Backlog Estimated Potential Contract Value Total Estimated Contract Value December 31, 2024 Aerospace $ 18,895 $ 798 $ 19,693 $ 1,132 $ 20,825 Marine Systems 30,530 9,288 39,818 9,560 49,378 Combat Systems 16,142 838 16,980 8,647 25,627 Technologies 9,577 4,529 14,106 34,029 48,135 Total $ 75,144 $ 15,453 $ 90,597 $ 53,368 $ 143,965 December 31, 2023 Aerospace $ 19,557 $ 897 $ 20,454 $ 451 $ 20,905 Marine Systems 30,141 15,755 45,896 3,647 49,543 Combat Systems 13,816 721 14,537 6,236 20,773 Technologies 8,961 3,779 12,740 28,011 40,751 Total $ 72,475 $ 21,152 $ 93,627 $ 38,345 $ 131,972 For additional information about our major products and services in backlog see the Business discussion contained in Item 1.
The following table details the backlog and estimated potential contract value of each segment at the end of 2025 and 2024: Funded Unfunded Total Backlog Estimated Potential Contract Value Total Estimated Contract Value December 31, 2025 Aerospace $ 20,804 $ 1,024 $ 21,828 $ 1,120 $ 22,948 Marine Systems 36,808 15,532 52,340 11,823 64,163 Combat Systems 26,064 1,154 27,218 14,670 41,888 Technologies 9,865 6,795 16,660 33,280 49,940 Total $ 93,541 $ 24,505 $ 118,046 $ 60,893 $ 178,939 December 31, 2024 Aerospace $ 18,895 $ 798 $ 19,693 $ 1,132 $ 20,825 Marine Systems 30,530 9,288 39,818 9,560 49,378 Combat Systems 16,142 838 16,980 8,647 25,627 Technologies 9,577 4,529 14,106 34,029 48,135 Total $ 75,144 $ 15,453 $ 90,597 $ 53,368 $ 143,965 For additional information about our major products and services in backlog see the Business discussion contained in Item 1.
Beyond total backlog, estimated potential contract value represents primarily options and other agreements with existing customers to purchase new aircraft and long-term aircraft services agreements. On December 31, 2024, estimated potential contract value in the Aerospace segment was $1.1 billion.
The segment’s book-to-bill ratio (orders divided by revenue) was 1.2-to-1 in 2025, even as revenue grew by more than 15% year over year. 40 Beyond total backlog, estimated potential contract value represents primarily options and other agreements with existing customers to purchase new aircraft and long-term aircraft services agreements.
AEROSPACE Year Ended December 31 2024 2023 Variance Revenue $ 11,249 $ 8,621 $ 2,628 30.5 % Operating earnings 1,464 1,182 282 23.9 % Operating margin 13.0 % 13.7 % Gulfstream aircraft deliveries (in units) 136 111 25 22.5 % Operating Results The increase in the Aerospace segment’s revenue in 2024 consisted of the following: Aircraft manufacturing $ 2,101 Aircraft services 527 Total increase $ 2,628 Aircraft manufacturing revenue increased in 2024 due primarily to the number and mix of aircraft deliveries, including our ultra-long-range, ultra-large-cabin G700 aircraft, which began deliveries in the second quarter of 2024 following U.S.
AEROSPACE Year Ended December 31 2025 2024 Variance Revenue $ 13,110 $ 11,249 $ 1,861 16.5 % Operating earnings 1,746 1,464 282 19.3 % Operating margin 13.3 % 13.0 % Gulfstream aircraft deliveries (in units) 158 136 22 16.2 % Operating Results The increase in the Aerospace segment’s revenue in 2025 consisted of the following: Aircraft manufacturing $ 1,602 Aircraft services 259 Total increase $ 1,861 Aircraft manufacturing revenue increased in 2025 due to additional G700 deliveries.
Revenue from U.S. military vehicles was up in 2024 due primarily to higher volume on the U.S. Army’s M10 Booker combat vehicle program.
Revenue from international military vehicles was up in 2025 due to higher volume on several wheeled and tracked vehicle programs in Europe. Revenue from U.S. military vehicles decreased in 2025 due primarily to the termination of the M10 Booker program and lower volume on Stryker programs, partially offset by higher volume on the XM30 program.
The segment’s total estimated contract value was $48.1 billion on December 31, 2024, up 18.1% compared with $40.8 billion at year-end 2023. 44 Significant contract awards in the Technologies segment during 2024 include: • $50 from the U.S.
The segment’s total estimated contract value was $49.9 billion on December 31, 2025, compared with $48.1 billion at year-end 2024.
The primary driver of cash flows in both years was net earnings. Cash flows in 2024 were affected negatively by growth in operating working capital, particularly driven by the ramp-up in production of new Gulfstream aircraft models, offset partially by an increase in customer deposits driven by Gulfstream aircraft orders in our Aerospace segment.
The primary driver of cash flows in both years was net earnings. Cash flows in 2024 were affected negatively by growth in operating working capital, particularly driven by timing in our Aerospace and Combat Systems segments. Cash flows in 2025 were affected positively as operating working capital balances in our Aerospace and Combat Systems segments began to unwind.
OTHER INFORMATION PRODUCT AND SERVICE REVENUE AND OPERATING COSTS Year Ended December 31 2024 2023 Variance Revenue: Products $ 28,635 $ 24,595 $ 4,040 16.4 % Services 19,081 17,677 1,404 7.9 % Operating Costs: Products $ (24,332) $ (20,591) $ (3,741) 18.2 % Services (16,020) (15,009) (1,011) 6.7 % The increase in product revenue in 2024 consisted of the following: Aircraft manufacturing $ 2,101 Ship construction 1,525 Weapons systems and munitions 509 Other, net (95) Total increase $ 4,040 Aircraft manufacturing revenue increased due to additional aircraft deliveries.
OTHER INFORMATION PRODUCT AND SERVICE REVENUE AND OPERATING COSTS Year Ended December 31 2025 2024 Variance Revenue: Products $ 33,021 $ 28,635 $ 4,386 15.3 % Services 19,529 19,081 448 2.3 % Operating Costs: Products $ (27,965) $ (24,332) $ (3,633) 14.9 % Services (16,634) (16,020) (614) 3.8 % 38 The increase in product revenue in 2025 consisted of the following: Ship construction $ 2,213 Aircraft manufacturing 1,602 Weapon systems and munitions 258 International military vehicles 194 Other, net 119 Total increase $ 4,386 Ship construction revenue was up due primarily to higher volume on submarine programs.
Orders in 2024 reflected strong demand across our portfolio of products and services, including orders for all models of Gulfstream aircraft. The segment’s book-to-bill ratio (orders divided by revenue) was 1-to-1 in 2024, even as revenue grew by more than 30% year over year.
Orders in 2025 reflected strong demand across our portfolio of products and services, including orders for all models of Gulfstream aircraft.
MARINE SYSTEMS Year Ended December 31 2024 2023 Variance Revenue $ 14,343 $ 12,461 $ 1,882 15.1 % Operating earnings 935 874 61 7.0 % Operating margin 6.5 % 7.0 % Operating Results The increase in the Marine Systems segment’s revenue in 2024 consisted of the following: U.S. Navy ship construction $ 1,525 U.S.
In total, the Aerospace segment’s operating margin increased 30 basis points in 2025. 2026 Outlook We expect the Aerospace segment’s 2026 revenue to increase to approximately $13.6 billion with operating margin of approximately 14%. 36 MARINE SYSTEMS Year Ended December 31 2025 2024 Variance Revenue $ 16,723 $ 14,343 $ 2,380 16.6 % Operating earnings 1,177 935 242 25.9 % Operating margin 7.0 % 6.5 % Operating Results The increase in the Marine Systems segment’s revenue in 2025 consisted of the following: U.S.
Fixed-rate notes of $750 mature in both April and May 2025. We currently plan to repay these notes at maturity using cash on hand, potentially supplemented by commercial paper or other borrowings. For additional information regarding our debt obligations, including scheduled debt maturities and interest rates, see Note K to the Consolidated Financial Statements in Item 8.
Our plan is to refinance these notes but we will continue to evaluate our approach as the maturity dates draw near. For additional information regarding our debt obligations, including scheduled debt maturities and interest rates, see Note K to the Consolidated Financial Statements in Item 8.
The increase in service revenue in 2024 consisted of the following: Aircraft services $ 527 C5ISR solutions/IT services 493 Ship services 357 Other, net 27 Total increase $ 1,404 38 Aircraft services revenue increased due to additional maintenance work. C5ISR solutions and IT services revenue was up due to higher volume, including the ramp-up of new programs.
The increase in service revenue in 2025 consisted of the following: C5ISR solutions/IT services $ 368 Aircraft services 259 Other, net (179) Total increase $ 448 The increase in service revenue is due to demand for IT services and aircraft maintenance work.
The following represents the Combat Systems segment’s total estimated contract value by market on December 31, 2024: TECHNOLOGIES The Technologies segment’s backlog consists of thousands of contracts and task orders across a mix of U.S. and non-U.S. government and commercial customers. These contracts can be shorter-cycle or span multiple years, but commonly include a smaller, initially funded order.
The increase in the Combat Systems segment’s backlog and estimated potential contract value was driven primarily by $9.2 billion of combined awards for wheeled and tracked vehicles for international customers, $3.3 billion for various munitions and ordnance, and $1 billion for next-generation Abrams main battle tanks. 42 The following represents the Combat Systems segment’s total estimated contract value by market on December 31, 2025: TECHNOLOGIES The Technologies segment’s backlog consists of thousands of contracts and task orders across a mix of U.S. and non-U.S. government and commercial customers.
Aircraft services operating earnings were higher in 2024 due to higher volume. G&A/other expenses increased in 2024 consistent with the growth in the business. In total, the Aerospace segment’s operating margin decreased 70 basis points in 2024. 2025 Outlook We expect the Aerospace segment’s 2025 revenue to increase to approximately $12.7 billion with operating margin of approximately 13.7%.
The Marine Systems segment’s operating margin increased 50 basis points in 2025 as 2024 included the unfavorable impact of supplier cost growth. 2026 Outlook We expect the Marine Systems segment’s 2026 revenue to increase to $17.3-$17.7 billion with operating margin of around 7.3%.
The Virginia-class program has been impacted by supplier quality issues and late supply chain deliveries causing cost growth and schedule delays. 2025 Outlook We expect the Marine Systems segment’s 2025 revenue to increase to approximately $15 billion with operating margin of approximately 6.8%. 36 COMBAT SYSTEMS Year Ended December 31 2024 2023 Variance Revenue $ 8,997 $ 8,268 $ 729 8.8 % Operating earnings 1,276 1,147 129 11.2 % Operating margin 14.2 % 13.9 % Operating Results The increase in the Combat Systems segment’s revenue in 2024 consisted of the following: Weapons systems and munitions $ 509 U.S. military vehicles 218 International military vehicles 2 Total increase $ 729 Weapons systems and munitions revenue increased in 2024 due to heightened demand for artillery products.
COMBAT SYSTEMS Year Ended December 31 2025 2024 Variance Revenue $ 9,246 $ 8,997 $ 249 2.8 % Operating earnings 1,331 1,276 55 4.3 % Operating margin 14.4 % 14.2 % Operating Results The increase in the Combat Systems segment’s revenue in 2025 consisted of the following: Weapon systems and munitions $ 258 International military vehicles 194 U.S. military vehicles (203) Total increase $ 249 Weapon systems and munitions revenue increased in 2025 due to increased propellant production and higher volume on missile subsystems programs.
Ship construction revenue was up due primarily to higher volume on the Columbia-class and Virginia-class submarine programs. Weapons systems and munitions revenue increased due to heightened demand for artillery products.
Aircraft manufacturing revenue increased due to additional aircraft deliveries. Weapon systems and munitions revenue increased due to increased propellant production and higher volume on missile subsystems programs. International military vehicles was up due primarily to demand for wheeled and tracked combat vehicle programs.
Our Board from time to time authorizes management’s repurchase of outstanding shares of our common stock on the open market. On December 4, 2024, the Board authorized management to repurchase up to 10 million additional shares of the company’s outstanding stock. We paid $1.5 billion and $434 in 2024 and 2023, respectively, to repurchase our outstanding 47 shares.
With respect to share repurchases, we paid $637 in 2025 to cover dilution from stock vesting and exercises, and $1.5 billion in 2024. On December 31, 2025, 6.8 million shares remained of the amount authorized by our Board in 2024 for repurchase, representing 2.5% of our total shares outstanding. Debt Issuances and Repayments.
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BUSINESS ENVIRONMENT GLOBAL EVENTS The coronavirus (COVID-19) pandemic caused significant disruptions to national and global economies and government activities, including supply chain and staffing challenges. Additionally, in response to the Russian invasion of Ukraine, the United States and several other countries imposed economic and trade sanctions, export controls and other restrictions targeting Russia and Belarus.
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BUSINESS ENVIRONMENT As a global aerospace and defense company, we compete in domestic and international markets, serving both government and commercial customers. Our financial performance is significantly influenced by U.S. government spending levels, administration priorities and the overall economy.
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Lastly, the impact of the conflict in the Middle East continues to evolve. The disruptions caused by these events continue to impact global economies and businesses, including ours. The primary impact to our business is supply chain challenges, including availability of parts, quality escapes and inflationary pressures.
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In the federal market, defense spending has been at elevated levels, and the administration has publicly stated support for further increases in fiscal year (FY) 2027. This is reflected in the significant demand in U.S. Navy shipbuilding, particularly submarines.
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In our Aerospace segment, supply chain challenges paced our ability to ramp up production at the rate we like in response to strong customer demand for our aircraft, causing out-of-sequence manufacturing that increased costs and decreased operational efficiency. In addition, the conflict in the Middle East impacted the delivery schedule for our Israel-based supplier of mid-cabin aircraft.
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We have invested in our facilities and workforce to increase production capacity to meet this demand, and expect to continue to do so. The increased demand has placed great pressure on the shipbuilding supply chain, which was already impacted by significant demographic issues coming out of the global pandemic.
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Within our defense segments, the COVID-19 pandemic resulted in supply chain challenges that continue to impact our Marine Systems segment. The Russia-Ukraine conflict and increased threat environment have created additional demand for certain of our products and services, particularly in our Combat Systems segment.
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Together with the Navy customer, we have been working to stabilize and grow the supply chain to meet this heightened demand. We have also been investing in the development of the next generation of combat vehicles and artillery. While the U.S.
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Any longer-term impact of these global events to our business is currently unknown due to the uncertainty around duration and their broader impact. For additional information, see the Risk Factors in Part I, Item 1A. OUR MARKETS With approximately 70% of our revenue from the U.S. government, government spending levels — particularly defense spending — influence our financial performance.
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Army is reviewing its funding priorities and begins transitioning to next-generation combat vehicles, we expect short-term production volumes to be down slightly. Demand for our munitions products has been high and is expected to remain at an elevated level given ongoing conflicts and regional threats.
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The Congress has not yet passed a defense appropriations bill for the government’s current fiscal year. However, the government has been operating under a continuing resolution (CR) that provides funding for some federal agencies through March 14, 2025.
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The administration began taking steps in 2025 to address federal spending and reduce the size of the government. These actions resulted in federal government staff reductions, contract modifications and terminations, and award delays. We experienced some impact from these actions which were largely limited to our IT services business.
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When the government operates under a CR, all programs of record are funded at the prior year’s appropriated levels until the current year appropriations bill is signed into law. Therefore, the U.S. Department of Defense (DoD) is prohibited from starting new programs or increasing funding on existing programs unless there is an exception for the program included in the CR.
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Our IT services business was also somewhat impacted by the government shutdown at the start of the current fiscal year. We expect some limited ongoing impact from these actions. We entered 2026 with the government operating under a continuing resolution that expires on January 30.
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The current CR included exceptions allowing the DoD to obligate additional funds for two fiscal year 2024 and one fiscal year 2025 Virginia-class submarines, and for non-executive pay improvements and infrastructure 32 investments to support the submarine industrial base.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeA 10% unfavorable rate movement in our portfolio of forward exchange contracts would have resulted in the following hypothetical, incremental pretax losses: (Dollars in millions) 2024 2023 Recognized $ (36) $ (107) Unrecognized (180) (74) These losses would be offset by corresponding gains in the remeasurement of the underlying transactions being hedged.
Biggest changeA 10% unfavorable rate movement in our portfolio of forward exchange contracts would have resulted in the following hypothetical, incremental pretax losses: (Dollars in millions) 2025 2024 Recognized $ (68) $ (36) Unrecognized (498) (180) These losses would be offset by corresponding gains in the remeasurement of the underlying transactions being hedged.
We believe these foreign currency forward exchange contracts and the offsetting underlying commitments, when taken together, do not create material market risk. Interest Rate Risk. On December 31, 2024, we had $8.8 billion principal amount of fixed-rate debt. Our fixed-rate debt obligations are not putable, and we do not trade these securities in the market.
We believe these foreign currency forward exchange contracts and the offsetting underlying commitments, when taken together, do not create material market risk. Interest Rate Risk. On December 31, 2025, we had $8 billion principal amount of fixed-rate debt. Our fixed-rate debt obligations are not putable, and we do not trade these securities in the market.
A 10% unfavorable interest rate movement would not have a material impact on the fair value of our fixed-rate debt. Commodity Price and Investment Risk. See Note Q to the Consolidated Financial Statements in Item 8 for a discussion of commodity price and investment risk. 53
A 10% unfavorable interest rate movement would not have a material impact on the fair value of our fixed-rate debt. Commodity Price and Investment Risk. See Note Q to the Consolidated Financial Statements in Item 8 for a discussion of commodity price and investment risk. 51
We had notional forward exchange contracts outstanding of $6.2 billion and $5.7 billion on December 31, 2024 and 2023, respectively.
We had notional forward exchange contracts outstanding of $8.5 billion and $6.2 billion on December 31, 2025 and 2024, respectively.

Other GD 10-K year-over-year comparisons