Slide 1: 2Q19 Highlights and 2019 Outlook
2Q19 Highlights and 2019 Outlook July 24, 2019 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains information about the company’s expectations of future performance, including future financial or operating performance. This information constitutes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act
Slide 3: Financial Highlights
Financial Highlights ($ in millions, except for EPS) 2Q19 2Q18 Revenue $9,555 $9,186 Productivity Operating Earnings $1,090 $1,088 Initiatives Net Earnings $806 $786 Improving the Earnings per Share* $2.77 $2.62 Bottom Line Total Backlog $67,654 $66,290 EBITDA** $1,312 $1,291 • Revenue up 4% or $369
Slide 4: Aerospace Highlights
Aerospace Highlights • Revenue up 12.7% to $2.1B, YTD up 17.6% to • June 28 FAA certification of G600 $4.4B First delivery expected in August Delivered 31 aircraft vs. 26 in 2Q18 • Continued expansion of services • Book-to-bill in excess of 1.0x in Q2 and TTM on network, with three additions set
Slide 5: Defense Highlights
Defense Highlights Combat Systems Revenue up 8.1% to $1.7B; YTD up 10.8% to $3.3B Significant growth in M-1 Abrams production Strong contribution from Stryker program Strong orders for munitions and armaments Domestic volume well over half of revenue Marine Systems Revenue up 7.2% to $2.
Slide 6: Defense Highlights (continued)
Defense Highlights (continued) Information Technology Revenue of $2.2B sequentially stable Best-in-class EBITDA margin at 12.4% YTD win rate of 74%; recompete rate of 92% Book-to-bill of 1.2x; backlog increased 6% sequentially to $8.9B Total Estimated Contract Value rose to $26.8B from $25
Slide 7: 2019 Financial Outlook
2019 Financial Outlook Prior Outlook New Outlook 1/30/19 7/24/19 EPS* $11.60 – 11.70 $11.85 – 11.90 Sales ≈$9.7B ≈$9.95B Aerospace Op Earn Slightly in excess of $1.5B ≈$1.525B Units ≈145 business jets ≈145 business jets Sales $6.5 – 6.6B ≈$6.8B Combat Systems Op Earn $965 – 975M ≈$1.0B Sales ≈$8.3B
Slide 8: Appendix
Appendix GENERAL DYNAMICS
Slide 9: Non-GAAP Financial Measures
Non-GAAP Financial Measures $ in millions a) We believe earnings before interest, taxes, depreciation and amortization (EBITDA) is a useful measure for investors because it provides another measure of our profitability and our ability to service our debt. We calculate EBITDA by adding back interest,
Slide 10: GENERAL DYNAMICS
GENERAL DYNAMICS