General Dynamics (GD) last week reported strong sales and earnings in the third quarter led by the company’s shipbuilding business followed by the Aerospace segment, the company said on its quarterly earnings call.
Overall, in the quarter, GD’s net income rose 16% to $1.2 billion, $4.49 earnings per share (EPS), from $1.1 billion ($3.88 EPS) a year ago, beating consensus estimates by 34 cents per share. Sales increased 13% to $14.6 billion from $12.9 billion. Operating margin rose 20 basis points to 10.5%. In addition to stronger operating performance, GD’s results benefited from lower net interest expense.
The company’s Marine Systems segment enjoyed a 34% increase in operating income to $391 million versus a year ago, operating margin of 7.9%, up and sales of $5 billion, 21% higher. The higher sales were driven by construction work on the Columbia and Virginia-class submarines, followed by destroyers and T-AO fleet-replenishment oilers, Phebe Novakovic, GD’s chairwoman and CEO, said on the company’s earnings call.
Throughput is up across the company’s shipyards, Danny Deep, GD’s president and incoming CEO, said on the call, noting later that throughput on submarine construction has increased 30 percent versus a year ago. Electric Boat, GD’s submarine division, has hired 6,000 shipbuilders so far this year and expects that to rise to 8,000 by year end, he said.
“And as those new shipbuilders get more and more experience, we’ll continue to see efficiencies accelerate,” Deep said.
Huntington Ingalls Industries (HII), which competes and partners with GD on submarine construction, at its own earnings call last week said throughput across its shipyards is up 9% this year, short of its 15% goal for the year. The company also builds destroyers and amphibious assault ships. HII said it had hired more than 6,000 shipbuilders in the first nine months of 2026.
Exchange Monitor affiliate Defense Daily first published a version of this story.
