GD · General Dynamics Q2 FY2026 earnings call record财报电话会记录

“Compared to the first half of 2025, capital expenditures were up nearly 30% to $437 million.”

“After capital expenditures, our free cash flow was $1.6 billion for the quarter, yielding a cash conversion rate of 142%, and $3.6 billion for the first half, a cash conversion rate in excess of 150%.”

“From a capital deployment perspective, in the quarter, we paid dividends of approximately $430 million and repurchased about $100 million of our common stock to cover dilution.”

“All in all, we ended the quarter with a cash balance of approximately $4.3 billion and a net debt position of $3.2 billion, down $1.2 billion from last quarter.”

“Aerospace had a very good quarter with revenue of $3.5 billion and operating earnings of $510 million, with a 14.5% operating margin.”

“Operating earnings of $510 million are up $107 million, driven in part by the increased revenue, but most importantly by 130 basis points improvement in operating margin.”

“Turning to market demand, aerospace had a 1.5 book-to-bill in the quarter with 16 more airplane orders than the year-ago quarter and 20 more than the first quarter of this year.”

“and Asia, with some cautious concern from customers in the Mideast, but they're still active in the pipeline.”

“The international portfolio is up more than 35% since 2024, and we expect that to continue to be a key driver of growth for the year and beyond.”

“In Combat, we expect revenue of about $9.8 billion, coupled with a 13.8% operating margin.”

“For 2026 company-wide, we expect to see revenue of approximately $55.7 billion and operating margin of 10.5%.”

“We're also very interested in agile acquisition programs and pipelines that allow us to bring product quickly to our customers.”