Shares of General Dynamics (GD +0.32%) rose this past week after the aerospace and defense giant delivered strong quarterly results.
The Gulfstream G500. Image source: General Dynamics.
Broad-based gains
General Dynamics' first-quarter revenue climbed 10.3% year over year to $13.5 billion.
Sales of the shipbuilder's marine systems jumped 21% to $4.3 billion, driven by orders of Virginia and Columbia class submarines. Higher demand for artillery units drove a 4.9% increase in sales of the defense contractor's combat systems to $2.3 billion. And technologies revenue rose 4.2% to $3.6 billion.
Revenue in the company's aerospace division, which designs and builds Gulfstream business jets, grew by 8.4% to $3.3 billion.
NYSE: GD
Key Data Points
All told, General Dynamics' operating earnings leaped 12% to $1.4 billion, or $4.10 per share.
Better still, the company generated free cash flow of nearly $2 billion, which enabled it to reward shareholders with $405 million in dividends.
Demand for defensive systems is rising
General Dynamics' order backlog swelled to $188.4 billion in total estimated contract value by quarter's end. That impressive figure is likely to grow even larger in the coming years.
General Dynamics stands to benefit from the Trump administration's proposed $1.5 trillion defense budget. The request represents the largest annual increase in national security spending since World War II.
