General Dynamics reports the highest backlog in its financial history

In its financial results for the fourth quarter and full year 2023, General Dynamics (GD) reported a strong financial position, particularly for the remainder of the year.

“We had a solid fourth quarter, capping a year that saw growth in all four areas and continued strong cash flow,” said Phebe Novakovic, president and CEO.

GD posted quarterly net income of $1 billion – or diluted earnings of $3.64 per share – while revenue rose 7.5% to $11.7 billion from the prior quarter.

For the full year, net income was $3.3 billion, or $12.02 per diluted share. Full-year revenue was $42.3 billion, up 7.3% from 2022.

Notably, prime said the backlog at the end of the year was worth $93.6 billion, the highest in the company’s history.

Although, the presence of a backlog can have positive or negative effects: an increasing backlog can indicate an increase in sales or increasing inefficiency in the production process. However, given the unprecedented military industrial expansion, not only in the US but around the world, this kind of deployment will become more common as we enter a new period of geopolitical conflict.

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Pending GD contracts

In the three defense divisions, major awards in the quarter.

This includes an indefinite delivery/indefinite quantity (IDIQ) contract with a maximum potential value of $2.5 billion from the Indian Health Service to modernize the electronic health record system.

An IDIQ contract with a maximum potential value of $975 million to provide mission command training and technical support services to the US military.

$395 million contract with options of maximum potential value of $840 million, to maintain and modernize two US Navy Arleigh Burke-Class (DDG-51) anti-destroy guided missiles.

Another contract with a maximum potential value of $420 million to provide ongoing shipyard services for the Navy’s DDG-51 program.

$265 million for miscellaneous munitions and ammunition.

Finally, a $245 million contract with a maximum potential value of $590 million for several key contracts for classified customers.

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