What it does
The company states that it is a global aerospace and defense company focused on design, engineering and manufacturing. Its portfolio spans business aviation; ship construction and repair; land combat vehicles, weapon systems and munitions; and technology products and services. It operates through 10 business units in four segments: Aerospace, Marine Systems, Combat Systems and Technologies. Aerospace includes Gulfstream aircraft and Jet Aviation services. The defense segments provide naval shipbuilding and support, land-combat and munitions systems, and IT, communications, cyber, intelligence and mission systems for government and other customers.
Source: General Dynamics Corporation Form 10-K for fiscal 2025, Item 1 — sec.gov
How it makes money
The filing presents four operating segments. In 2025, Marine Systems was 32% of consolidated revenue, Aerospace was 25%, Technologies was 26%, and Combat Systems was 17%. Aerospace revenue came from aircraft manufacturing and aircraft services. Marine Systems generated revenue from nuclear-powered submarines, surface ships, and repair and other services. Combat Systems sold military vehicles, weapon systems and munitions, plus engineering and other services. Technologies generated revenue from IT services and C5ISR solutions. The company says its U.S. government production contracts are primarily fixed-price, while research, engineering, repair, maintenance and other services are typically cost-reimbursement or time-and-materials contracts.
Source: General Dynamics Corporation Form 10-K for fiscal 2025, Item 1 — sec.gov
Customers and geography
The company states that the U.S. government is its primary customer, with the Department of War (DoW), intelligence community, and other departments and agencies among its government customers. In 2025, 68% of consolidated revenue came from the U.S. government, 15% from U.S. commercial customers, 8% from non-U.S. government customers and 9% from non-U.S. commercial customers. U.S. commercial revenue primarily related to business jet aircraft and related services. The company conducts business worldwide; its non-U.S. commercial revenue primarily consists of business jet exports and worldwide aircraft services. It says approximately 38% of Aerospace aircraft backlog at December 31, 2025 was from customers outside North America.
Source: General Dynamics Corporation Form 10-K for fiscal 2025, Item 1 — sec.gov
Competition
The filing says competitive factors in defense and business aviation include technical excellence, reliability, safety, cost competitiveness, innovation, program execution, delivery, global accessibility, past performance and customer relationships. It does not name the company’s competitors. For defense work, the company says it competes with domestic and non-U.S. contractors, specialized smaller companies, local private manufacturers and state-owned defense manufacturers. Marine Systems has one primary competitor that is also a partner on the Virginia-class submarine program; it also faces several U.S. shipyards in commercial and repair work. Aerospace has several competitors for each Gulfstream product and faces competitors of varying sizes in aircraft services.
Source: General Dynamics Corporation Form 10-K for fiscal 2025, Item 1 — sec.gov
Key risks
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The U.S. government provides a significant portion of revenue; decreases in government spending or changes in priorities could reduce, delay or terminate programs.
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U.S. government contracts are not always fully funded at inception, and funding may be disrupted or delayed through the budget and appropriations process.
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Government customers have termination rights, including the right to terminate contracts for convenience.
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Earnings and margin depend on the company’s ability to perform on contracts, including assumptions about labor, materials, complexity and schedules.
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Supplier performance and supply-chain disruptions, including reliance on only one or two sources in some cases, could affect customer commitments.
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Cybersecurity events and other disruptions could harm operations, expose sensitive information, create liability or affect eligibility for sensitive government work.
Source: General Dynamics Corporation Form 10-K for fiscal 2025, Item 1A — sec.gov
People and operations
The company reports approximately 117,000 employees globally. It says approximately 84% are based in the United States, while the remaining 16% work internationally in over 65 countries, primarily in North America and Europe; approximately 23% of its workforce is represented by collective bargaining agreements. The filing states that its specialized work requires hiring and training skilled and qualified people. Its operating structure comprises 10 business units across four segments, with each business unit responsible for strategy development, execution and operating results. The company depends on suppliers and subcontractors for raw materials, components and subsystems, and says supply networks can face price fluctuations and capacity constraints.
Source: General Dynamics Corporation Form 10-K for fiscal 2025, Item 1 — sec.gov