General Dynamics' second quarter revenue and EPS beat estimates, driven by strong growth in Aerospace and Marine Systems.

General Dynamics reported second-quarter revenue of $14.1 billion, an 8.1% increase year-over-year, with diluted EPS rising 13.4% to $4.24. Both figures surpassed analyst expectations, driven by double-digit revenue growth in the Aerospace and Marine Systems segments.

Key Highlights

• Revenue growth was led by the Aerospace segment, which increased 15.1% to $3.5 billion, and the Marine Systems segment, which grew 10.4% to $4.7 billion.
• The company reported a strong company-wide book-to-bill ratio of 1.4-to-1, adding to a total backlog of $136.5 billion.
• Gulfstream delivered a total of 41 aircraft during the quarter, exceeding analyst estimates of 39 units and showing continued production ramp-up.
• Operating margin expanded by 40 basis points year-over-year to 10.4%, with noteworthy margin expansion in the Aerospace and Marine Systems segments.