General Dyamics Stock Rises on Earnings. Aerospace Was a Standout.

An advanced artillery carrier, Piranha, manufactured by General Dynamics European Land Systems, a division of General Dynamics. (Photo by THOMAS COEX/AFP via Getty Images)

Key Points

• General Dynamics reports third-quarter earnings per share of $3.88 on sales of $12.9 billion, exceeding analysts’ estimates.
• Aerospace revenue increases by 30%, while marine and combat systems sales grow by 14% and 2%, respectively.
• The company’s orders total $19.3 billion, resulting in a book-to-bill ratio of 1.5 to 1 for the quarter.

Aerospace and defense businesses are humming right now. General Dynamics’ stock rose after the company posted another strong quarter.

General Dynamics announced Friday third-quarter earnings per share of $3.88 from sales of $12.9 billion. Wall Street was looking for earnings of $3.70 from sales of $12.5 billion. A year ago, in the third quarter of 2024, General Dynamics reported profit of $3.35 a share from sales of $11.7 billion.

Aerospace revenue rose 30% with profit margins improving. Sales grew in marine and combat systems by 14% and 2%, respectively, with profit margins stable.

Orders in the quarter totaled $19.3 billion. The book-to-bill ratio, defined as orders divided by revenue, was 1.5 to 1. Investors like to see a book-to-bill greater than one.

General Dynamics stock rose 2.7% to $350.77 on Friday, while the S&P 500 and Dow Jones Industrial Average gained 0.8% and 1%, respectively.

“Each of our [business] segments grew earnings and backlog in the quarter, reflecting solid execution coupled with growing demand,” said CEO Phebe Novakovic in a news release. “The aerospace segment in particular performed impressively … with order activity for business jets remaining very strong.”

General Dynamics Gulfstream division delivered its first G800 business jet in August.

Results looked solid in what has been a good year for shares. General Dynamics has topped Wall Street estimates all three quarters this year by an average of roughly 5%.

Coming into Friday, General Dynamics has risen about 30% this year, boosted by rising defense spending around the globe and growing demand for business jets.

Write to Al Root at allen.root@dowjones.com