General Dynamics' Backlog Surges to $220B on Major Defense Orders

General Dynamics reported $98.8 billion in new orders in the third quarter of 2026, driven by major submarine contracts, while revenue rose 12.9% year-on-year to $14.6 billion, the company announced on October 30.

The aerospace and defense company's total backlog reached $220.3 billion at the end of the quarter, with an additional $50.4 billion in estimated potential contract value, bringing its total estimated contract value to $270.7 billion.

Orders across its defense segments totaled $93.8 billion, driven by large contracts for Virginia- and Columbia-class submarines in its Marine Systems business, while the Aerospace segment secured $5 billion in orders.

The company's book-to-bill ratio, which measures orders received relative to revenue, reached 6.8 for the quarter, including 8.5 across its defense segments and 1.4 in Aerospace.

General Dynamics reported operating earnings of $1.5 billion, up 14.7% from the same period last year, while diluted earnings per share increased 15.7% to $4.49.

Operating margin improved by 20 basis points to 10.5%.

“Our business had exceptional third quarter results, with revenue growth across all four segments, robust bookings and solid operational performance,” said Phebe Novakovic, chairman and chief executive officer of General Dynamics.

“With the consistent growth in our backlog and our significant investment in our businesses over the last decade, we are poised to drive continued performance in the years to come.”

Cash from operating activities totaled $1.7 billion, representing 139% of net earnings.

During the quarter, General Dynamics invested $481 million in capital expenditures, paid $429 million in dividends and reduced its total debt by $500 million.

The company ended the quarter with $7 billion in total debt and $4.4 billion in cash and equivalents.