Strong marine demand boosts General Dynamics profit outlook

General Dynamics now expects full-year 2026 profit between $16.45 and $16.55 per share, compared with its previous projection of $16.10 to $16.20 per share.

Quarterly revenue in the marine systems segment rose 21 per cent from a year ago, driven by higher production volumes on the Virginia- and Columbia-class submarine programmes.

General Dynamics reported strong order activity, with quarterly bookings running at roughly twice the level of billings, boosting the overall backlog.

The pickup in new contracts also lifted cash generation, with operating cash flow swinging to an inflow of $2.2 billion from an outflow of $148 million a year earlier, and free cash flow rebounding to nearly $2 billion from negative $290 million. The improvement was driven largely by a $764 million increase in customer advance payments.