Free cash flow remains volatile, fluctuating between a negative 4.1% margin in 2024Q1 and a 14.7% peak in 2025Q3, reflecting the capital-intensive nature of ongoing production programs.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 7.42B | 5.12B | 4.11B | 4.71B | 4.58B | 4.27B | 3.86B | 2.98B | 3.15B | 3.88B | 2.2B | 2.5B | 3.73B | 3.11B | 2.69B | 3.24B | 2.99B | 2.84B | 3.11B | 2.92B | 2.13B | 2.06B | 1.8B | 1.72B | 1.13B | 1.1B | 1.07B | 1.02B | 370M | 557M | 1.04B |
| Operating CF Margin % | - | 9.74% | 8.62% | 11.14% | 11.62% | 11.1% | 10.17% | 7.58% | 8.7% | 12.52% | 7.19% | 7.86% | 12.08% | 10.04% | 8.67% | 9.91% | 9.2% | 8.88% | 10.61% | 10.74% | 8.84% | 9.8% | 9.43% | 10.53% | 8.14% | 9.15% | 10.34% | 11.34% | 5% | 9.34% | 28.93% |
| Operating CF Growth % | 1673.6% | 24.51% | -12.7% | 2.86% | 7.21% | 10.71% | 29.42% | -5.3% | -18.85% | 76.48% | -12.04% | -32.97% | 20.03% | 15.59% | -17.02% | 8.44% | 5.14% | -8.68% | 6.32% | 37.45% | 3.5% | 14.1% | 4.58% | 53.16% | 1.99% | 2.99% | 5.41% | 174.59% | -33.57% | -46.24% | 350.43% |
| Net Income | 4.34B | 4.21B | 3.78B | 3.31B | 3.39B | 3.26B | 3.17B | 3.48B | 3.35B | 2.91B | 2.96B | 2.96B | 2.53B | 2.36B | -332M | 2.53B | 2.62B | 2.41B | 2.48B | 2.08B | 1.71B | 1.46B | 1.2B | 997M | 1.05B | 943M | 901M | 880M | 364M | 316M | 270M |
| Depreciation & Amortization | 933M | 924M | 886M | 863M | 884M | 890M | 878M | 829M | 763M | 441M | 454M | 482M | 496M | 556M | 620M | 592M | 569M | 562M | 447M | 423M | 384M | 342M | 326M | 277M | 213M | 271M | 226M | 200M | 126M | 91M | 67M |
| Stock-Based Compensation | 202M | 196M | 183M | 181M | 165M | 126M | 128M | 133M | 140M | 123M | 100M | 110M | 128M | 120M | 114M | 128M | 118M | 117M | 105M | 86M | 61M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 601M | 256M | -86M | -177M | -178M | -66M | -127M | 92M | -3M | 401M | 376M | 167M | 136M | 104M | -148M | 14M | 56M | 227M | 196M | 122M | 45M | 144M | 279M | 134M | 179M | 117M | 128M | 41M | -2M | -15M | -61M |
| Other Non-Cash Items | -580M | -658M | -69M | -107M | -362M | -617M | -23M | 37M | -272M | 186M | -51M | 24M | -157M | 216M | 2.21B | -86M | -14M | 115M | -724M | -30M | 20M | 1.45B | 84M | -13M | -70M | 64M | -79M | -2M | -33M | -3M | -13M |
| Working Capital Changes | 1.93B | 192M | -584M | 635M | 680M | 681M | -165M | -1.59B | -825M | -184M | -1.64B | -1.25B | 592M | -247M | 222M | 64M | -367M | -588M | 608M | 244M | -92M | 134M | -115M | 337M | -247M | -292M | -105M | -31M | -73M | 201M | 894M |
| Change in Receivables | 1.9B | 556M | -245M | 38M | 46M | 138M | 371M | 176M | 417M | -195M | -161M | 604M | 330M | -205M | 240M | -420M | -152M | -151M | -386M | -519M | -160M | -555M | -66M | 48M | -90M | -38M | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 597M | 450M | -1.2B | -2.22B | -980M | 405M | 502M | -376M | -591M | -182M | -1.19B | 75M | -22M | -23M | -329M | -186M | -23M | -72M | -183M | -135M | -237M | -120M | -54M | 188M | -141M | -223M | -71M | -189M | -209M | 86M | 41M |
| Change in Payables | -512M | -664M | 247M | -303M | 224M | 194M | -215M | 6M | -197M | 657M | 567M | -89M | -161M | -223M | -441M | 17M | 366M | -92M | -38M | 340M | 180M | 190M | 168M | 58M | 137M | 48M | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -1.35B | -1.29B | -959M | -945M | -1.49B | -882M | -974M | -994M | -10.23B | -791M | -426M | 200M | -1.1B | -367M | -656M | -1.97B | -408M | -1.39B | -3.66B | -852M | -2.32B | -181M | -783M | -3.23B | -400M | -1.75B | -329M | -1.22B | -269M | -808M | -605M |
| Capital Expenditures | -1.22B | -1.16B | -916M | -904M | -1.11B | -887M | -967M | -987M | -690M | -428M | -392M | -569M | -521M | -440M | -450M | -458M | -370M | -385M | -490M | -474M | -334M | -279M | -266M | -224M | -264M | -356M | -288M | -1.29B | -414M | -1.31B | -75M |
| CapEx % of Revenue | 2.27% | 2.21% | 1.92% | 2.14% | 2.83% | 2.31% | 2.55% | 2.51% | 1.91% | 1.38% | 1.28% | 1.79% | 1.69% | 1.42% | 1.45% | 1.4% | 1.14% | 1.2% | 1.67% | 1.74% | 1.39% | 1.33% | 1.39% | 1.37% | 1.91% | 2.95% | 2.78% | 14.37% | 5.6% | 22.01% | 2.09% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | -203M | -19M | -10.1B | -399M | -49M | -5M | 0 | -1M | -444M | -1.56B | -233M | -811M | -3.22B | -330M | -2.34B | -277M | -543M | -3.04B | -275M | -1.45B | -71M | 18M | 98M | 34M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -132M | -133M | -43M | -41M | -375M | 5M | 196M | 12M | 555M | 36M | -34M | 264M | -84M | 96M | 19M | 200M | 58M | 39M | 35M | 131M | 360M | 367M | 35M | 35M | 141M | 64M | 24M | -8M | -3M | -5M | -28M |
| Cash from Financing | -3.64B | -3.19B | -3.37B | -3.09B | -3.47B | -4.59B | -903M | -2B | 5.09B | -2.4B | -2.17B | -4.26B | -3.58B | -725M | -1.38B | -1.2B | -2.23B | -806M | -718M | -786M | -539M | -520M | -904M | 2.04B | -836M | 908M | -835M | 267M | -310M | 71M | -130M |
| Debt Issued (Net) | -1.59B | -753M | -500M | -1.25B | -1B | -1.5B | 1.02B | -559M | 8.43B | 85M | 492M | -500M | 0 | 0 | -18M | 747M | -700M | -157M | 1.25B | 0 | -500M | 0 | -247M | -569M | -527M | 1.19B | -518M | 411M | -214M | 183M | -8M |
| Equity Issued (Net) | -854M | -637M | -1.5B | -434M | -1.23B | -1.83B | -587M | -231M | -1.77B | -1.56B | -2B | -2.96B | -3.38B | -740M | -456M | -1.47B | -1.19B | -209M | -1.52B | -505M | 168M | -348M | 169M | -300M | -100M | -113M | -208M | -8M | -172M | -27M | -15M |
| Dividends Paid | -1.61B | -1.59B | -1.53B | -1.43B | -1.37B | -1.31B | -1.24B | -1.15B | -1.07B | -986M | -911M | -873M | -822M | -591M | -893M | -673M | -631M | -577M | -533M | -445M | -359M | -314M | -278M | -249M | -236M | -219M | -202M | -136M | -108M | -102M | -101M |
| Share Repurchases | -854M | -637M | -1.5B | -434M | -1.23B | -1.83B | -587M | -231M | -1.77B | -1.56B | -2B | -3.23B | -3.38B | -740M | -602M | -1.47B | -1.19B | -209M | -1.52B | -505M | -85M | -348M | 0 | -300M | -100M | -113M | -208M | -59M | -226M | -60M | -23M |
| Other Financing | 418M | -207M | 161M | 18M | 127M | 50M | -95M | -55M | -503M | 60M | 246M | 79M | 629M | 606M | -15M | 193M | 290M | 137M | 88M | 164M | 152M | 142M | -548M | 3.16B | 27M | 48M | 93M | 0 | -2M | 17M | -6M |
| Net Change in Cash | 2.41B | 636M | -216M | 671M | -361M | -1.22B | 1.92B | -61M | -2.02B | 649M | -451M | -1.6B | -913M | 2B | 647M | 36M | 350M | 642M | -1.27B | 1.29B | -727M | 1.35B | 115M | 532M | -111M | 265M | -93M | 60M | -310M | 71M | -130M |
| Free Cash Flow | 6.2B | 3.96B | 3.2B | 3.81B | 3.46B | 3.38B | 2.89B | 1.99B | 2.46B | 3.45B | 1.81B | 1.93B | 3.21B | 2.67B | 2.24B | 2.78B | 2.62B | 2.46B | 2.62B | 2.45B | 1.79B | 1.78B | 1.54B | 1.5B | 861M | 747M | 783M | -271M | -44M | -756M | 961M |
| FCF Margin % | 11.52% | 7.53% | 6.7% | 9% | 8.79% | 8.8% | 7.62% | 5.07% | 6.79% | 11.14% | 5.91% | 6.07% | 10.39% | 8.62% | 7.22% | 8.51% | 8.06% | 7.68% | 8.94% | 9% | 7.46% | 8.47% | 8.03% | 9.16% | 6.23% | 6.2% | 7.56% | -3.02% | -0.59% | -12.67% | 26.84% |
| FCF Growth % | 85.49% | 23.87% | -16.03% | 9.84% | 2.39% | 17.05% | 44.98% | -18.88% | -28.77% | 91.09% | -6.42% | -39.82% | 20.29% | 19.18% | -19.53% | 6.27% | 6.56% | -6.3% | 6.9% | 36.62% | 0.96% | 15.69% | 2.47% | 74.1% | 15.26% | -4.6% | 388.93% | -515.91% | 94.18% | -178.67% | 385.35% |
| FCF per Share | 22.62 | 14.45 | 11.52 | 13.80 | 12.46 | 12.00 | 10.04 | 6.86 | 8.22 | 11.33 | 5.82 | 5.91 | 9.40 | 7.54 | 6.33 | 7.56 | 6.79 | 6.33 | 6.57 | 6.01 | 4.41 | 4.39 | 3.81 | 3.76 | 2.12 | 1.84 | 1.95 | -0.67 | -0.11 | -3.00 | 3.81 |
| FCF Conversion (FCF/Net Income) | 1.43x | 1.22x | 1.09x | 1.42x | 1.35x | 1.31x | 1.22x | 0.86x | 0.94x | 1.33x | 0.85x | 0.82x | 1.47x | 1.32x | -8.09x | 1.28x | 1.14x | 1.19x | 1.26x | 1.41x | 1.15x | 1.41x | 1.47x | 1.72x | 1.23x | 1.17x | 1.19x | 1.15x | 0.63x | 1.00x | 3.84x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -34M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Working capital volatility
As reported in quarterly financial statements, General Dynamics exhibits significant volatility in cash conversion, with the OCF/NI ratio swinging from a negative 0.35 in 2024Q1 to a robust 1.92 in 2026Q1, highlighting the inherent lumpiness of defense-related cash flows and milestone-based revenue recognition.
The wide variance in the relationship between net income and operating cash flow suggests that reported earnings are frequently decoupled from immediate cash generation. Investors should monitor whether this volatility stems from timing differences in government contract payments or underlying inefficiencies in the cash conversion cycle.
Based on the provided data, General Dynamics' free cash flow trajectory remains inconsistent, with margins fluctuating between a negative 4.1% in 2024Q1 and a peak of 14.7% in 2025Q3, reflecting the capital-intensive nature of the firm's ongoing submarine and aircraft production ramp-ups.
The inability to maintain a stable FCF margin suggests that the company's cash generation is highly sensitive to the timing of major project milestones. This inconsistency warrants further investigation into whether current capital expenditure levels are sufficient to support long-term growth without further straining liquidity.
According to recent SEC filings, working capital changes have been a primary driver of cash flow instability, with quarterly swings ranging from a $1.3 billion outflow in 2025Q1 to a $1.3 billion inflow in 2024Q4, indicating significant sensitivity to inventory and receivable management.
These dramatic shifts in working capital suggest that the company's cash position is heavily influenced by the timing of large-scale defense contract payments and inventory build-ups. Such fluctuations may indicate that the firm is absorbing significant cash flow risk to maintain production schedules for critical defense platforms.
As reported in financial statements, General Dynamics continues to prioritize shareholder returns through consistent dividend payments of approximately $400 million per quarter, even during periods of negative free cash flow, which may indicate a high level of confidence in long-term liquidity and balance sheet strength.
The commitment to dividends and periodic share repurchases, despite the volatility in operating cash flow, suggests a management strategy focused on maintaining investor confidence. However, the reliance on external financing or cash reserves to fund these returns during low-cash quarters warrants close monitoring by stakeholders.
Quick answers to the most common questions about buying GD stock.
General Dynamics Corporation (GD) generated $5.12B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
General Dynamics Corporation (GD) generated $3.96B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
General Dynamics Corporation (GD) spent $1.16B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, General Dynamics Corporation (GD) returned $1.59B to shareholders via cash dividends and spent $637.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.