As one of the world’s leading aerospace and defense companies, General Dynamics has a net worth that places it among the most valuable global corporations.
In this article, we’ll explore General Dynamics net worth and its financial performance, diving deep into the factors that drive its revenue and profitability.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | General Dynamics |
| Full Name | General Dynamics Corporation |
| Website | www.gd.com |
| Industry | Aerospace and Defense |
| Traded As | NYSE: GD |
| ISIN | N/A |
| Founded | 1893 |
| Founders | John Philip Holland |
| Country/Territory | United States |
| Headquarters | Reston, Virginia |
| Chief Executive Officer | Phebe N. Novakovic |
| Number of Employees | Over 100,000 |
| Market Cap | $82.61 billion |
| Total Assets | $55.4 billion |
| Total Equity | $22 billion |
| Revenue | $42.3 billion (2023) |
| Net Income | $1.7 billion (2024) |
What is the Net Worth/Market Cap of General Dynamics in 2024?
As of October 2024, General Dynamics’ net worth, reflected by its market capitalization, stands at $82.61 billion. This figure positions the company as a significant player in the aerospace and defense industry.
To put this in perspective, General Dynamics ranks as the 223rd most valuable company worldwide. When compared to its industry peers, this market cap highlights its strong market presence and solid financial performance.
Other companies and brands related to General Dynamics include:
- Lockheed Martin
- Boeing
- Raytheon Technologies
- Northrop Grumman
- BAE Systems
- Honeywell
- L3Harris Technologies
- United Technologies
- Textron
- Leonardo
For more insights into other leading corporations, check out the most financially influential companies on Ando Money’s richest company list.
General Dynamics Financial Performance Overview
Understanding the Company’s Core Revenue Streams
General Dynamics operates four primary business segments: Aerospace, Marine Systems, Combat Systems, and Technologies. Each of these segments plays a crucial role in driving the company’s financial performance.
Aerospace Segment Performance and Revenue Drivers
The Aerospace segment of General Dynamics contributed a significant portion of the company’s revenue in 2024, with $2.94 billion in Q2 alone, marking a 50.5% increase from the same quarter in 2023.
The growth was primarily driven by the successful ramp-up of Gulfstream aircraft deliveries, particularly large-cabin aircraft, which accounted for 31 of the 37 deliveries in the quarter.
Defense contracts also played a vital role in the Aerospace segment’s revenue growth. The demand for both business and defense aircraft has been robust, ensuring steady orders and revenue contributions.
Marine Systems Segment Contributions to Revenue
The Marine Systems segment has also shown significant financial strength.
In Q2 2024, this segment reported $3.45 billion in revenue, representing a 12.9% year-over-year increase. Ship construction and repair, particularly for the U.S. Navy, have been the key drivers.
Contracts for planning yard services and maintenance for guided-missile destroyers significantly contribute to the segment’s revenue.
Analyzing the Combat Systems Segment and Its Financial Growth
The Combat Systems segment has been another major revenue contributor. In Q2 2024, it generated $2.29 billion, with an 18.9% increase from the previous year.
The growth in this segment is fueled by several defense vehicle programs, including upgrades to the Stryker vehicle fleet and Abrams main battle tanks. International contracts and system technical support services further added to the segment’s financial stability.
General Dynamics also secured notable contracts for munitions and ordnance, including artillery propellant and other armaments, valued at up to $460 million.
This has a direct impact on the Combat Systems segment’s profitability and backlog.
The Role of Technologies Segment in Revenue Generation
The Technologies segment reported revenue of $3.3 billion in Q2 2024, a modest 2.5% increase from the previous year.
This segment’s financial contributions come from IT services, software development, and systems modernization projects, often tied to defense and federal contracts.
Key contracts for classified clients have added considerable value, enhancing the segment’s financial performance.
Financial Implications of Key Contracts and Backlog
The consolidated backlog for General Dynamics at the end of Q2 2024 stood at $91.3 billion, indicating a steady flow of future revenue.
The company also boasts an additional estimated potential contract value of $38.5 billion, highlighting the depth of its future earnings potential.
The Aerospace and Marine Systems segments together make up a significant portion of this backlog, ensuring revenue stability and predictability.
Operating Margins and Segment-Specific Profitability
The company’s operating margins remain healthy, with a total margin of 9.7% in Q2 2024.
The Aerospace segment recorded a margin of 10.9%, while Combat Systems and Technologies achieved 13.7% and 9.7%, respectively.
Profitability in each segment is driven by disciplined program execution and cost controls.
Cash Flow and Capital Allocation
The company reported $814 million in net cash provided by operating activities in Q2 2024, translating to approximately 90% of net earnings.
The company strategically uses its cash flow to fund dividends, with $389 million paid out in Q2, and capital expenditures totaling $201 million.
Company Financial Health and Stability Indicators
The balance sheet of General Dynamics shows total assets of $55.4 billion and total equity of $22 billion as of June 30, 2024.
A debt-to-equity ratio of 42.0% demonstrates a balanced approach to leveraging debt while maintaining financial stability.
Market Position and Competitive Advantages in Revenue Growth
General Dynamics continues to expand its market presence within the defense and aerospace sectors.
Its ability to secure significant contracts, both domestically and internationally, underscores its competitive edge and ability to adapt to evolving market demands.
FAQs About General Dynamics
How Does General Dynamics Generate Most of Its Revenue?
The company primarily generates revenue through its four segments: Aerospace, Marine Systems, Combat Systems, and Technologies. The Aerospace and Combat Systems segments have been particularly strong contributors.
What Are General Dynamics’ Main Areas of Business?
The company operates in aerospace and defense, providing business aviation, shipbuilding, combat vehicles, weapons systems, munitions, and technology services.
How Did General Dynamics Perform Financially in Q2 2024?
In Q2 2024, General Dynamics reported $12 billion in revenue, an 18% increase from the previous year, with net earnings of $905 million and operating earnings of $1.2 billion.
What Is the Total Backlog for General Dynamics?
The company’s total backlog at the end of Q2 2024 was $91.3 billion, with an additional estimated potential contract value of $38.5 billion.
Who Is the CEO of General Dynamics?
The current CEO is Phebe N. Novakovic, who has been leading the company with a focus on disciplined program execution and cost management.
Conclusion
General Dynamics stands as a prominent player in the defense and aerospace industry, showing strong financial performance and stability.
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