Slide 1: Second-Quarter 2021 Highlights and 2021 Outlook
AEROSPACE AEROSPACE MARINE SYSTEMS COMBAT SYSTEMS TECHNOLOGIES Second-Quarter 2021 Highlights and 2021 Outlook July 28, 2021 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 Three Months Variance ($ in millions, except for EPS) 2Q21 2Q20 $ % Revenue $9,220 $9,264 ($44) (0.5%) Operating Earnings $959 $834 $125 15.0% Operating Margin 10.4% 9.0% +140 bps Net Earnings $737 $625 $112 17.9% EPS, Diluted $2.61 $2.18 $0.43 19.7% Cash from Operations $1,115
Slide 4: Aerospace
Aerospace Three Months Variance ($ in millions) 2Q21 2Q20 $ % Revenue $1,622 $1,974 ($352) (17.8%) Operating Earnings $195 $159 $36 22.6% Operating Margin 12.0% 8.1% +390 bps • Aerospace Book-to-Bill of 2.0x – Gulfstream book-to-bill 2.1x – Highest backlog since 3Q15 and strongest second quarter ord
Slide 5: Marine Systems
Marine Systems Three Months Variance ($ in millions) 2Q21 2Q20 $ % Revenue $2,536 $2,471 $65 2.6% Operating Earnings $210 $200 $10 5.0% Operating Margin 8.3% 8.1% +20 bps • Continued Revenue Growth – 15th consecutive quarter of growth – DDG-51, ESB and T-AO drove growth • Key Developments – Columbia
Slide 6: Combat Systems
Combat Systems Three Months Variance ($ in millions) 2Q21 2Q20 $ % Revenue $1,899 $1,754 $145 8.3% Operating Earnings $266 $239 $27 11.3% Operating Margin 14.0% 13.6% +40 bps • Revenue Growth Driven by Combat Vehicles • Productivity Drove Margin Improvement – Solid results from all three business un
Slide 7: Technologies
Technologies Three Months Variance ($ in millions) 2Q21 2Q20 $ % Revenue $3,163 $3,065 $98 3.2% Operating Earnings $308 $247 $61 24.7% Operating Margin 9.7% 8.1% +160 bps EBITDA * $433 $376 $57 15.2% EBITDA Margin * 13.7% 12.3% +140 bps • Ramp-up in New Programs Drove Revenue – IT Services expanded
Slide 8: Financial Guidance
Financial Guidance Initial 2021 Guidance Updated 2021 Outlook EPS, diluted $11.00 – 11.05 ≈ $11.50 Operating Operating Revenue ($B) Revenue ($B) Margin Margin ≈ $8.0 ≈ $8.2 Aerospace ≈112 – 117 ≈ 12.5% ≈ 12.4% ≈120 deliveries deliveries Marine Systems ≈ $10.3 ≈ 8.3% ≈ $10.6 ≈ 8.4% Combat Systems ≈ $
Slide 9: Appendix
Appendix GENERAL DYNAMICS
Slide 10: Non-GAAP Financial Measures
Non-GAAP Financial Measures Second Quarter ($ in millions) 2021 2020 Earnings before interest, taxes, depreciation and amortization: Net earnings $ 737 $ 625 Interest, net 109 132 Provision for income tax, net 144 102 Depreciation of property, plant and equipment 144 132 Amortization of intangible a
Slide 11: Non-GAAP Financial Measures – Technologies
Non-GAAP Financial Measures – Technologies Second Quarter ($ in millions) 2021 2020 Earnings before interest, taxes, depreciation and amortization: Operating earnings $ 308 $ 247 Other, net 24 20 Depreciation of property, plant and equipment 39 35 Amortization of intangible and finance lease right-o
Slide 12: GENERAL DYNAMICS
GENERAL DYNAMICS