General Dynamics (GD) official guidance

Gulfstream will still deliver about 160 airplanes.

We continue to expect capital expenditures between 3.5% and 4% of sales for the full-year.

Second, our cash taxes are weighted toward the back half of the year, with over $500 million of payments expected.

This rate is a little higher than our outlook for the full-year, which remains around 17.5%.

All this rolls up to an increased EPS forecast of $16.80-$16.90 for the year.

Given our strong cash performance so far, we now expect a free cash flow conversion rate a little north of 100% of net income for the year. Let's say around 105%.

At this point, our expectation for net interest expense for the year is approximately $270 million.

We anticipate a 14.7% operating margin for the year.

The third quarter operating margin will be about the same as this quarter with a better fourth quarter.

The third quarter operating margin will be about the same as this quarter with a better fourth quarter.

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

Our outlook for the year now anticipates revenue around $18 billion with an operating margin for the year of 7.4%.

In Technologies, we expect revenue of $14.1 billion and an operating margin of 9.4%.

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

For 2026, we now expect aerospace revenue of around $13.8 billion.

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

Our outlook for the year now anticipates revenue around $18 billion with an operating margin for the year of 7.4%.

In Technologies, we expect revenue of $14.1 billion and an operating margin of 9.4%.

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

From a delivery standpoint, we should expect that second quarter will be very similar to first quarter, and then the third and fourth will be our highest, and that's per plan.

From a delivery standpoint, we should expect that second quarter will be very similar to first quarter, and then the third and fourth will be our highest, and that's per plan.

From a delivery standpoint, we should expect that second quarter will be very similar to first quarter, and then the third and fourth will be our highest, and that's per plan.

Capital expenditures are expected to increase over $900 million or 79% from 2025.

Additionally, our cash taxes should remain around the same level, with both years receiving some benefit from the R&D capitalization recovery.

The free cash flow for the year breaks down as follows: The quarters are expected to each be positive and grow slightly, with the fourth quarter still representing the largest, but much less of a climb as compared to 2025's plan.

This should result in operating earnings of around $1.9 billion.

This should lead to improved earnings around $1.36 billion at the midpoint of the revenue range.

This should result in operating earnings around $1.3 billion.

This should leave operating earnings of about $1.3 billion.

This should leave us with operating earnings around $5.7 billion at the midpoint of the anticipated revenue range.

Our outlook for this year anticipates revenue in a range of $17.3 billion-$17.7 billion, with a 30 basis point improvement at the operating margin line.

We are targeting over 2% of sales for the full year CapEx, given the expected investments in the fourth quarter that I mentioned a moment ago.

This rate is approaching our outlook for the full year, which remains around 17.5%.

Overall, we are increasing our EPS forecast to between $15.30-$15.35.

Coming off strong cash collections in the third quarter, we now expect about half as much free cash flow as we generated in the third quarter in the fourth quarter.

As a result, we anticipate a free cash flow conversion percentage in the low 90% for the year.

On a company-wide basis, we see annual revenue of around $52 billion and margins of around 10.3%.

On a company-wide basis, we see annual revenue of around $52 billion and margins of around 10.3%.