Latest news with #GeneralDynamics
Business Insider
2 days ago
- Business
- Business Insider
General Dynamics awarded $1.85B Navy contract modification
General Dynamics (GD) was awarded a not-to-exceed $1.85B undefinitized contract action modification to a previously awarded contract for long lead time material and preliminary construction efforts associated with Virginia-class Block VI submarines. Work is expected to be completed by September 2035. Fiscal 2025 shipbuilding and conversion funds in the amount of $1.68B will be obligated at the time of award and will not expire at the end of the current fiscal year. Naval Sea Systems is the contracting activity. Confident Investing Starts Here:
Yahoo
2 days ago
- Business
- Yahoo
Why General Dynamics Stock Is a Top Pick in the Defense Sector
When global tensions rise, defense stocks are often seen as strategic investments. In such uncertain times, governments around the world increase defense spending to improve military readiness, modernize technology, and protect national interests. One company that stands to benefit significantly from this trend is General Dynamics (GD), an American aerospace and defense company that supplies a wide range of products and services to the U.S. government and its allies. Tesla's Robotaxis Reportedly Sped and Veered Into the Wrong Lanes. Does This Crush the Bull Case for TSLA Stock? Dear Micron Stock Fans, Mark Your Calendars for June 25 Is United Health Stock a Buy, Hold or Sell for July 2025? Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! Valued at $75.4 billion, General Dynamics stock has gained 8.9% year-to-date, outperforming the broader market gain of 3.5%. Given the rising demand for defense products and services, Wall Street sees more upside in GD stock. Is GD a buy now? General Dynamics operates through four major business segments: Aerospace Marine Systems Combat Systems Technologies Each of these divisions contributes significantly to revenue and ensures diversification, which protects against downturns in any one market. General Dynamics reported first-quarter revenue of $12.2 billion, up 13.9% year-over-year, reflecting broad-based strength across all four operating segments. Earnings per diluted share came in at $3.66, up an impressive 27.1%, thanks to a favorable mix in Aerospace and disciplined cost control across all business lines. The Aerospace segment performed exceptionally well in the first quarter. Revenue increased 45.2% to $3.03 billion, driven by a 50% increase in aircraft deliveries, including the long-awaited G700. The Combat Systems segment generated $2.18 billion in revenue, up 3.5% year-over-year. This modest increase was because of steady demand for Abrams tanks, Stryker vehicles, and international programs. In the Marine Systems segment, revenue rose 7.7% year-over-year to $3.6 billion, driven by ongoing work on the Columbia-class ballistic missile submarines, Virginia-class fast attack submarines, and DDG-51 destroyers. The Technologies segment, generated $3.43 billion in revenue, up 6.8%. The segment also received significant orders in the quarter, with a book-to-bill ratio of 1.1x, indicating strong demand for secure IT solutions, cyber defense, and mission-critical infrastructure. During the earnings call, management noted that the pace of contract solicitations and awards has been inconsistent due to shifting federal spending priorities. Despite some stop-work orders and minor contract delays, Aiken emphasized that the 2025 outlook remains unchanged, and General Dynamics is well-positioned with a conservative backlog and high confidence in its pipeline. General Dynamics ended Q1 with a total backlog of $89 billion, reflecting its diverse long-term customer commitments in the defense and technology sectors. However, the quarter was not without financial challenges. Free cash flow came in at negative $290 million, primarily due to inventory buildup across major programs and the timing of milestone receipts. Despite this, General Dynamics remained committed to shareholder returns. The company returned $983 million to shareholders in dividends and share repurchases, demonstrating its belief in its long-term cash generation capabilities. General Dynamics offers a forward dividend yield of 2.1%. With a 34-year track record of dividend increases and a reasonable payout ratio of 35%, GD is also a Dividend Aristocrat. This makes GD appealing not only to growth, but also to income-oriented investors. Capital expenditures for the quarter totaled $142 million, reflecting continued investments in production capacity, digital transformation, and innovation, particularly in aerospace and shipyard infrastructure. At the end of the quarter, General Dynamics had $1.2 billion in cash and equivalents and $9.6 billion in total debt. While working capital constraints and tariff uncertainty present challenges, the company's backlog remains strong, margins are improving, and customer demand and a diverse client base indicate continued resilience. Furthermore, shareholder returns remain strong, and management has set a positive tone for the remainder of the year. Analysts predict that General Dynamics' earnings will rise by 9.6% in 2025, and by another 11.8% in 2026. Priced at 18x forward earnings, General Dynamics appears to be a reasonably valued growth stock. Overall, the Street rates it a 'Moderate Buy.' Out of the 22 analysts covering the stock, eight have a 'Strong Buy' rating, 13 rate it a 'Hold,' and one says it is a 'Strong Sell.' The average target price for the stock is $292, which is close to its current trading price. Its high price estimate of $330 suggests the stock can climb by 15.4% from current levels. On the date of publication, Sushree Mohanty did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Khaleej Times
3 days ago
- Business
- Khaleej Times
Trump wants more drones and missiles, fewer F-35s in $893 billion budget request
US President Donald Trump wants a pay raise for troops, more high-tech missiles and drones in next year's defense budget, while cutting Navy jobs, and buying fewer ships and fighter jets to save money, according to budget materials posted Wednesday. At $892.6 billion, the defense and national security budget request is flat compared with this year. The budget, which also includes nuclear weapons-related activities carried out by the Department of Energy and increases funding for homeland security, puts Trump's mark on the military by pulling funds away from weaponry and services to fund his priorities. The White House said the funding will be used to deter Chinese aggression in the Indo-Pacific, and revitalize the defense industrial base. Most of the funding for Trump 's marquee Golden Dome missile defense shield was included in a separate budget request and is not part of the latest proposal sent to Congress. In the 2026 budget Trump requested fewer F-35 jets made by Lockheed Martin and only three warships. Procurement of a Virginia-class made by General Dynamics and Huntington Ingalls Industries and 15 other ships are expected to be included in a separate appropriation bill, the Navy said. The budget asks for a 3.8% pay raise for troops, but also trims costs by retiring older weaponry including ships and planes that are more expensive to operate. Under the plan, the Navy will reduce its civilian employee workforce by 7,286 people. Compared to Biden's budget from his last year in office, which had asked for 68 F-35 jets in fiscal 2025, Trump's fiscal 2026 request seeks only 47 of the fighter jets. The budget has already sparked debate on Capitol Hill where the House Appropriations Committee's Defense subcommittee's draft bill for fiscal-year 2026 boosts the F-35 buy to 69, one more than Biden's 2025 request. The Pentagon continues prioritizing purchasing munitions and key weapons systems. The Air Force is continuing its investment the Joint Air to Surface Standoff Missile – Extended Range and Long Range Anti-Ship missile which have longer ranges and can be more effective in the Pacific. On the other hand, the budget seeks far fewer Precision Strike Missile, which will replace the Army Tactical Missile (ATACM) used in Ukraine. Lockheed Martin makes all three missiles. The budget also boosts spending on small drones - in part because of lessons learned in Ukraine where unmanned aircraft have proven to be an integral part of low-cost, yet highly effective warfighting. The detailed request comes as Republicans debate defense spending priorities in their sweeping $150 billion defense package contained in the pending "One Big Beautiful Bill Act". The act has already been passed the House of Representatives and will give an initial $25 billion boost to Trump's controversial Golden Dome missile defense shield. Defense spending usually accounts for about half of the U.S. discretionary budget; the rest goes to transportation, education, diplomacy and other departments.
Yahoo
3 days ago
- Business
- Yahoo
General Dynamics (GD) Secures $986.8 Million Modification Contract for Submarine Work
General Dynamics Corporation (NYSE:GD) is one of the 11 best industrial stocks to buy right now. On June 18, the company was awarded a $986.8 million contract modification by the US Department of Defense for submarine development work. A military cargo plane landing at its destination, signifying the strength of its defense arm. The cost-plus-fixed-fee modification contract funds additional component development and class lead yard support. The new contract will also support submarine Industrial Base supplier development enhancements for Columbia-class ballistic missile submarines. Additionally, the contract modification combines $16 million in United Kingdom funding to support the joint U.S. Columbia-class and U.K. Dreadnought-class common missile compartment program. The contract includes programs directly supporting the Navy, Department of Defense, and Office of Management and Budget's guidance. The funding supports strategic sourcing, supplier development, and infrastructure upgrades, which are included in the president's fiscal 2025 budget. General Dynamics Corporation (NYSE:GD) is a global aerospace and defense company. It designs, manufactures, and serves diverse products and services, including business jets, combat vehicles, nuclear-powered submarines, and information technology solutions. While we acknowledge the potential of GD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None.
Al Arabiya
3 days ago
- Business
- Al Arabiya
Trump wants more drones and missiles, fewer F-35s in $893 billion budget request
US President Donald Trump wants a pay raise for troops, more high-tech missiles and drones in next year's defense budget, while cutting Navy jobs, and buying fewer ships and fighter jets to save money, according to budget materials posted Wednesday. At $892.6 billion, the defense and national security budget request is flat compared with this year. The budget, which also includes nuclear weapons-related activities carried out by the Department of Energy and increases funding for homeland security, puts Trump's mark on the military by pulling funds away from weaponry and services to fund his priorities. The White House said the funding will be used to deter Chinese aggression in the Indo-Pacific, and revitalize the defense industrial base. Most of the funding for Trump's marquee Golden Dome missile defense shield was included in a separate budget request and is not part of the latest proposal sent to Congress. In the 2026 budget Trump requested fewer F-35 jets made by Lockheed Martin and only three warships. Procurement of a Virginia-class made by General Dynamics and Huntington Ingalls Industries and 15 other ships are expected to be included in a separate appropriation bill, the Navy said. The budget asks for a 3.8 percent pay raise for troops, but also trims costs by retiring older weaponry including ships and planes that are more expensive to operate. Under the plan, the Navy will reduce its civilian employee workforce by 7,286 people. Compared to Biden's budget from his last year in office, which had asked for 68 F-35 jets in fiscal 2025, Trump's fiscal 2026 request seeks only 47 of the fighter jets. The budget has already sparked debate on Capitol Hill where the House Appropriations Committee's Defense subcommittee's draft bill for fiscal-year 2026 boosts the F-35 buy to 69, one more than Biden's 2025 request. The Pentagon continues prioritizing purchasing munitions and key weapons systems. The Air Force is continuing its investment the Joint Air to Surface Standoff Missile – Extended Range and Long Range Anti-Ship missile which have longer ranges and can be more effective in the Pacific. On the other hand, the budget seeks far fewer Precision Strike Missile, which will replace the Army Tactical Missile (ATACM) used in Ukraine. Lockheed Martin makes all three missiles. The budget also boosts spending on small drones - in part because of lessons learned in Ukraine where unmanned aircraft have proven to be an integral part of low-cost, yet highly effective warfighting. The detailed request comes as Republicans debate defense spending priorities in their sweeping $150 billion defense package contained in the pending 'One Big Beautiful Bill Act'. The act has already been passed the House of Representatives and will give an initial $25 billion boost to Trump's controversial Golden Dome missile defense shield. Defense spending usually accounts for about half of the US discretionary budget; the rest goes to transportation, education, diplomacy and other departments.
