A defense and aerospace giant that builds Gulfstream business jets, the U.S. Navy's nuclear submarines (at its Electric Boat yards), Abrams tanks and Stryker vehicles, plus cybersecurity and IT systems for the government. It grew out of the Electric Boat Company, founded in 1899 to bring inventor John Holland's submarine to the U.S. Navy, and took the name "General Dynamics" in 1952 when its boss decided "Electric Boat" no longer fit a company that had branched into aircraft and other industries. Its Gulfstream jets trace to a plane Grumman first flew in the late 1950s, a name with no connection to its parent.
Q2 2026 operating cash flow reached $4.0B in H1, up from $1.5B a year earlier, on working capital reductions
Cash generation swung sharply higher this half. rose 8.1% to $14.1B in Q2 with of $3.74 up 12% as Aerospace margin expanded 130 to 14.5% on more aircraft deliveries, and H1 reached $4.0B versus $1.5B a year earlier. The company carries a $136.5B into the second half with margin recovery still uneven across segments.
Key takeaways
H1 2026 reached $4.0B, up from $1.5B a year earlier, aided by reductions; was $3.6B, or 157% of .
Aerospace expanded 130 to 14.5% in Q2 on 41 aircraft deliveries versus 38 a year earlier and favorable mix, with full-year margin expected around 14.7%.
rose 8.1% to $14.1B in Q2 and 9.1% in H1, led by Aerospace up 15.1% and Marine Systems up 10.4% on submarine construction and T-AO-205 oiler throughput.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 8.1% to $14.1B with operating margin up 40 bps to 10.4%, driven by Aerospace and Marine Systems growth.
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Consolidated increased 8.1% in Q2 and 9.1% in H1 2026, led by Aerospace (+15.1% Q2) and Marine Systems (+10.4% Q2).
Marine Systems margin improved 40 to 7.3% on better shipyard performance even as its grew on submarine and oiler volume.
Total rose to $136.5B with a defense of 1.4x in Q2; Aerospace backlog reached $24B on strong orders at a 1.5x book-to-bill.
Combat Systems was flat in Q2 as lower U.S. military vehicle demand offset higher munitions and international vehicle sales, with margin down 30 to 13.9%.
What changed
Marine Systems in Q2 2026 came in at 7.3%, up 40 from the 7.0% 2025 level that prior filings flagged to watch, as better shipyard performance met persistent supply chain challenges.
Aerospace rose to 14.5% in Q2, continuing the recovery from the 13.2% Q2 2025 rate and above the 13.3% 2025 full year flagged for sustainability above 13%.
Q2 2026 followed the $1.95B Q1 figure with H1 reaching $3.6B, reversing the working-capital drag that held 2024 to $4.1B.
, , and G300 delivery counts in Q2 showed 41 Aerospace deliveries versus 38 a year earlier, against the $130.8B and $16.45-$16.55 guide carried from Q1.
Total grew to $136.5B from $130.8B at Q1 2026 end and $118B at 2025 year-end, with defense of 1.4x versus 1.6x in Q3 2025.
What to watch
Marine Systems in Q3 2026 against the 7.3% Q2 level as and volume rises and supply chain challenges persist
Aerospace in H2 as the 14.5% Q2 rate develops toward the ~14.7% full-year expectation from and delivery mix
Q3 2026 as the $3.6B H1 figure normalizes with Gulfstream delivery cash collection
, , and G300 delivery counts in Q3 against the $136.5B total and $24B Aerospace backlog
Aerospace expanded 130 to 14.5% in Q2 on higher aircraft deliveries (41 vs. 38) and favorable mix; full-year margin expected ~14.7%.
Marine Systems grew on submarine construction and T-AO-205 oiler throughput; margin improved 40 to 7.3% on better shipyard performance.
Combat Systems was flat in Q2 as lower U.S. military vehicle demand offset higher munitions and international vehicle sales; margin dipped 30 to 13.9%.
surged to $4.0B in H1 2026 from $1.5B, aided by reductions; reached $3.6B (157% of ).
Total rose to $136.5B, with defense book-to-bill of 1.4x in Q2; Aerospace backlog hit $24B on strong orders (book-to-bill 1.5x).
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes with respect to this item from the disclosure included in our Annual Report on Form 10-K for the year ended December 31, 2025.
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There have been no material changes with respect to this item from the disclosure included in our Annual Report on Form 10-K for the year ended December 31, 2025.
There have been no material changes with respect to this item from the disclosure included in our Annual Report on Form 10-K for the year ended December 31, 2025.
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There have been no material changes with respect to this item from the disclosure included in our Annual Report on Form 10-K for the year ended December 31, 2025.