GD
General Dynamics Corporation
Industrials · Aerospace & Defense · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- Strong financial health with a debt-to-equity ratio of 0.32 and solid annual revenue and EPS growth contributed positively to the composite score.
- A balanced dividend payout ratio of 37.8% supported the Dividend Candidate label, rewarding the company for returning capital while retaining earnings.
- Moderate profitability margins and mixed near-term quarterly momentum tempered the overall score, preventing a higher ranking despite strong annual growth figures.
Why Not Higher
- Profitability metrics — operating margin of 10.2% and net margin of 8.0% — are moderate rather than exceptional, limiting the profitability factor's contribution to the total score.
- Quarterly momentum showed a peak in 2025Q4 followed by a pullback in 2026Q1, and the Defense Spending theme assignment did not contribute positively to the model score, both acting as constraints on the composite total.
Data Confidence
9 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $47,716,000,000 to FY2025's $52,550,000,000, a gain of 10.1%. Net income rose 11.3% over the same period, and diluted EPS increased 13.4% from FY2024's $13.63 to FY2025's $15.45.
The model rewarded consistent double-digit expansion across revenue, net income, and earnings per share, with EPS growth outpacing top-line growth, suggesting improving per-share efficiency. The score of 15.0 reflects solid but not exceptional growth relative to the model's full range.
In FY2025, General Dynamics reported an operating margin of 10.2%, a net margin of 8.0%, and a return on assets of 7.4%.
These figures indicate a company that converts a meaningful share of revenue into profit and generates reasonable returns on its asset base, though the margins are moderate for a defense contractor, which the model reflects in a mid-range score of 13.2.
In FY2025, General Dynamics carried a debt-to-equity ratio of 0.32 against total assets of $57,249,000,000.
A debt-to-equity ratio of 0.32 in FY2025 signals conservative leverage, which the model rewarded with a high score of 16.0, reflecting a balance sheet that relies predominantly on equity rather than debt financing.
Over the last four reported quarters, revenue moved from $13,041,000,000 in 2025Q2 to $12,907,000,000 in 2025Q3, then peaked at $14,379,000,000 in 2025Q4 before pulling back to $13,481,000,000 in 2026Q1. Net income and operating income followed a similar pattern, rising through 2025Q4 ($1,143,000,000 and $1,452,000,000, respectively) and then easing in 2026Q1 ($1,125,000,000 and $1,420,000,000).
The quarterly trend shows a peak in 2025Q4 followed by a modest pullback in 2026Q1 across revenue, net income, and operating income, indicating mixed near-term momentum rather than a clear acceleration, which the model reflects in a moderate score of 12.0.
In FY2025, General Dynamics maintained a dividend payout ratio of 37.8% of net income.
A payout ratio of 37.8% in FY2025 suggests the company returns a meaningful portion of earnings to shareholders while retaining the majority for reinvestment, a balance the model views favorably and rewards with a score of 15.0.
General Dynamics is assigned to the Defense Spending macro theme.
Although the company is assigned to the Defense Spending theme, this assignment did not translate into a positive score under the model's current methodology; the theme assignment itself is a factual classification and does not independently guarantee score contribution.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
General Dynamics delivered solid annual growth in FY2025, with revenue rising 10.1% to $52.6 billion and diluted EPS climbing 13.4% to $15.45, reflecting improving per-share efficiency. The company maintains a conservative balance sheet with a debt-to-equity ratio of 0.32 and total assets of $57.2 billion, supporting its Very Low risk rating. Profitability is moderate, with an operating margin of 10.2% and net margin of 8.0%, while a dividend payout ratio of 37.8% underscores its classification as a Dividend Candidate. Near-term quarterly momentum showed a peak in 2025Q4 followed by a modest pullback in 2026Q1, introducing some caution about the pace of near-term acceleration.
Plain English
General Dynamics is a large defense company that grew its revenue and earnings solidly in 2025, keeps relatively little debt compared to its equity, and pays out a reasonable chunk of its profits as dividends — making it look like a stable, income-friendly stock, though its recent quarterly results have been a bit mixed after a strong fourth quarter.
Bull Case vs. Bear Case
Bull Case
- Revenue grew 10.1% year-over-year to $52.6 billion in FY2025, with diluted EPS rising even faster at 13.4% to $15.45, suggesting the company is becoming more efficient at generating earnings per share.
- A debt-to-equity ratio of just 0.32 against $57.2 billion in total assets signals a conservatively financed balance sheet with significant financial flexibility.
- A dividend payout ratio of 37.8% in FY2025 indicates the company returns meaningful income to shareholders while retaining the majority of earnings for reinvestment.
Bear Case
- Operating margin of 10.2% and net margin of 8.0% in FY2025 are moderate for a defense contractor, suggesting limited pricing power or cost efficiency relative to peers.
- Quarterly momentum peaked in 2025Q4 and pulled back in 2026Q1 across revenue, net income, and operating income, indicating the near-term growth trajectory is not clearly accelerating.
- The Defense Spending macro theme assignment did not contribute positively to the model score, meaning the thematic tailwind did not translate into a measurable scoring advantage under the current methodology.
What Could Change the Picture
Bullish Triggers
- A sustained re-acceleration in quarterly revenue and earnings beyond the 2025Q4 peak would signal that the 2026Q1 pullback was temporary rather than the start of a deceleration trend.
- Expansion in operating or net margins above current FY2025 levels of 10.2% and 8.0% respectively would indicate improving profitability and could strengthen the investment case.
Bearish Triggers
- A continued decline in quarterly revenue or net income beyond the 2026Q1 pullback would suggest the strong FY2025 annual results may not be sustained going forward.
- A meaningful increase in the debt-to-equity ratio from its current low level of 0.32 could signal a shift toward more aggressive leverage, reducing the balance sheet strength that underpins the Very Low risk rating.
Risk Profile
Very Low RiskGeneral Dynamics carries a Very Low risk rating, supported by a conservative debt-to-equity ratio of 0.32 and a large asset base of $57.2 billion that provides a stable financial foundation. While quarterly results showed a modest pullback in 2026Q1 after a strong 2025Q4, the overall financial structure does not exhibit signs of elevated financial stress.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.