General Dynamics Q1 Earnings Beat, Stock Falls 2%

General Dynamics reported first-quarter 2025 net earnings rising 24-27% year-over-year to $994 million ($3.66 per share), exceeding analyst expectations amid robust demand for military equipment driven by ongoing geopolitical tensions such as the Russia-Ukraine war. Revenues increased 13.9% to $12.22 billion, with standout growth in both the aerospace and marine segments. The aerospace division achieved a 45.2% revenue increase and a 50% rise in aircraft deliveries, while marine and combat systems also experienced solid growth. Despite strong results, the company's stock fell 2% after the earnings release as investors considered future prospects and broader market conditions. General Dynamics has outperformed the market in 2025 so far, but future stock movement will depend on management’s outlook and earnings estimate trends. The company’s backlog remains robust at $141.33 billion, indicating sustained demand for its defense and aerospace products.