General Dynamics began 2025 with quarterly results that exceeded Wall Street’s revenue and profit expectations, while the market reaction was muted. Management attributed growth to a sharp increase in Aerospace deliveries—especially the introduction of the G700 jet—and broad-based gains across its defense businesses. CEO Phebe Novakovic highlighted that all segments posted revenue growth, with Aerospace revenue up over 45% due to higher Gulfstream deliveries and improved supply chain performance. Novakovic also noted that “each of the defense segment also enjoyed revenue increases,” further supporting overall results.

Is now the time to buy GD? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions General Dynamics’s Q1 Earnings Call

• Peter Arment (Baird) asked about the Technologies Group’s strong bookings and government cost-saving initiatives; Executive Vice President Jason Aiken explained ongoing collaboration with government customers to deliver value and noted current results remain resilient despite some solicitation delays.

• David Strauss (Barclays) questioned whether tariffs had impacted Gulfstream order activity; CEO Phebe Novakovic responded that the pipeline remains strong, with only cautious behavior from customers so far.

• Kristine Liwag (Morgan Stanley) inquired about potential cost-saving measures in government IT contracts; Aiken stated discussions were ongoing but avoided quantifying effects, emphasizing an active dialogue with federal customers.

• Ken Herbert (RBC Capital Markets) sought details on Gulfstream delivery cadence for the year; Novakovic indicated delivery estimates remain consistent with prior guidance, with no major changes expected unless indicated after Q2.

• Gautam Khanna (TD Cowen) asked about contract terminations in Technologies; Aiken confirmed some stop-work orders but stressed that the overall business outlook for the year is unchanged and that the company’s approach to backlog is conservative.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will watch (1) the pace and mix of Gulfstream G700 and G800 deliveries, (2) the timing and size of new defense contract awards, especially in Europe and U.S. shipbuilding, and (3) progress on supply chain stabilization and productivity improvements in Marine Systems. Ongoing developments related to tariffs and government procurement reforms will also be closely tracked for their potential impact.

General Dynamics currently trades at $283.80, up from $274.54 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).

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