Oct 30, 2026 earnings call — Record backlog after large submarine contracts
Nearly $99 billion in new orders drove backlog to a record $220 billion this quarter.
Revenue $14.6B (est $13.7B) · EPS $4.49 (est $4.12) · Next-quarter revenue outlook $56.5B–$56.8B
Key quotes
"Nearly $99 billion in new orders drove our backlog to a record $220 billion, doubling the level of a year ago."
"This year's quarter's revenue growth of 21% was driven by Columbia and Virginia-class construction volumes, followed by DDG 51 and T-AO construction volumes."
"So, our intent is to deliver 200 aircraft in 2030."
Analyst Q&A 11
Marine margin and Gulfstream deliveries
Q (Seth Seifman · JPMorgan): Analyst asked if Marine’s strong margin this quarter is sustainable or a one-time lift, and whether Gulfstream can reach 200 deliveries a year long-term.
A: Management said Marine’s margin was boosted by strong shipyard performance and a one-time cumulative catch pickup on the Virginia Block IV booking rate, and advised to isolate that one-time item. They said Gulfstream’s intent is to deliver 200 aircraft in 2030, and they have the production, workforce and facilities to produce that level, with further investment needed to go beyond it.
"I think the awards -- the most recent awards really didn't have any impact or any significant impact on the margin rate in the Marine Group." — Danny Deep (PRESIDENT)
Missile supplier role and Columbia progress
Q (Peter Arment · Baird): Analyst asked how GD and OTS participate in the missile framework agreements and for color on Columbia submarine progress and milestones.
A: Management said GD is a subcontractor to missile primes, supplying motor cases and actuators at OTS and guidance components at Mission Systems, and that GD’s share of the framework is small but important and they are ramping up. On Columbia and Virginia they said throughput and output are up about 30% year-over-year and they added thousands of new shipbuilders, which will drive further efficiency gains.
"We're in the single digits and the low single digits, but an important piece of it." — Danny Deep (PRESIDENT)
CapEx, leverage, and Marine investment plans
Q (Kenneth Herbert · RBC): Analyst asked about expected CapEx in 2027 and 2028, leverage and capital allocation, and specifically how much Marine will spend to support delivery growth.
A: Kimberly said CapEx has increased, with a significant ramp expected in the fourth quarter and CapEx likely to stay elevated in 2027, though planning is ongoing, and that share repurchases currently cover dilution. Danny said Marine has been investing for years and will continue to invest in facilities, productivity, automation and workforce development to support submarine volume increases for the next few years.
"And so over the next few years, we will continue to facilitize and invest in capacity." — Danny Deep (PRESIDENT)
Technology segment growth: GDIT vs MS
Q (BofA): Analyst asked for background on growth in the technology segment and how to think about growth between GDIT and Mission Systems (MS) going forward.
A: Management said both GDIT and Mission Systems had a strong quarter and year-to-date growth, with a modest Q4 slowdown reflecting strong Q3 results. They expect 2026 revenue to be up in the mid-single digits versus 2025 and said the relative contribution from each group should remain consistent for the foreseeable future.
"But overall, when you look at '26 as compared to 2025, we'll be up in the mid-single digits." — Danny Deep (PRESIDENT)
Services growth and ELS share of combat
Q (Myles Walton · Wolfe): Analyst asked how much services grew and whether any test aircraft shipped, and how large a portion of combat business ELS represents and if that growth is sustainable.
A: Management said services grew meaningfully at Gulfstream and at Jet Aviation, and that services margins are similar to new aircraft so not clearly accretive or dilutive. On ELS, they said ELS is becoming a significant portion of the international combat portfolio and that the international combat segment, where ELS is a big part, almost represents 50% of the entire portfolio, with much of that being direct and driven by ELS.
"When you think about the international portfolio in combat, of which ELS is a big part of, it almost represents 50% of the entire portfolio." — Danny Deep (PRESIDENT)
Gulfstream demand drivers and Anduril impact
Q (Douglas Harned · Bernstein): Analyst asked what is driving Gulfstream’s strong demand outside the Middle East, and whether Anduril’s Arsenal-2 work helps or competes with Electric Boat and Newport News.
A: Management said customer activity remains robust in North America, Western Europe and Asia, with Middle East demand more cautious; fuel prices have not had a discernible impact on demand. They welcomed new entrants like Anduril to the submarine supply chain and said they are focused on four components Anduril will provide—torpedo tubes, air flasks, impulse tanks and auxiliary tanks—to add needed capacity.
"Specifically, as it relates to Anduril, we are very focused on the 4 significant components that they're going to provide us torpedo tubes and air flasks and impulse tanks and auxiliary tanks." — Danny Deep (PRESIDENT)
Gulfstream medium-term product strategy
Q (Sheila Kahyaoglu · Jefferies): Analyst asked how management sees Gulfstream’s medium-term trajectory given the new family of aircraft and whether order growth reflects competitive wins or customer demand.
A: Phebe said the new clean-sheet family of Gulfstream airplanes was a long-term strategic choice to meet customer needs, and that new product has driven demand; she described the transition as successful and expressed confidence in Gulfstream’s future. Danny added they will continue to develop the portfolio and invest in new aircraft and sustainment support.
"And I think that, that transition has been very successful." — Phebe Novakovic (CEO·CHAIR)
G280 to G300 gap and margin impact
Q (Gautam Khanna · TD Cowen): Analyst asked about the G280 phasing out, the timing of the gap before G300 deliveries, and what that means for margins in 2027.
A: Management said there will be a gap as the G280 phases out before G300 certification, but they will more than offset G280 volume reduction with additional large cabin aircraft, improving mix and margins. They expect G280 deliveries to finish around the middle of next year and G300 certification toward the end of next year, with deliveries after certification and dependent on the Middle East situation.
"It goes into, kind of, middle of next year, is when we expect, the G280s will finish delivery." — Danny Deep (PRESIDENT)
M&A appetite and capital allocation focus
Q (Kristine Liwag · Morgan Stanley): Analyst asked whether GD would add another business leg (like low-cost, high-volume defense tech) and where Danny sees opportunities to invest organically or via M&A.
A: Phebe said the company invests where it can get a good return and meet customer needs, noted recent investments in defense and Gulfstream, and said they have never discussed M&A so will not address it now; she emphasized caution about moving outside core areas. Danny agreed and said that approach to capital allocation should continue.
"We have never discussed M&A, and so we're not going to go there now." — Phebe Novakovic (CEO·CHAIR)
Tech margins and OTS milestones
Q (Andre Madrid · U.S. Bancorp BTIG): Analyst asked what could drive Technology segment margins back to double digits for GDIT and Mission Systems, and what milestones to watch in OTS (munitions).
A: Danny said Mission Systems focuses on differentiated electronic systems for subsea, space, intelligence and cyber, and GDIT has grown by investing in mission-ready technologies and using OTAs and more fixed-price work; together they should drive good growth and margin improvement over time. He said the OTS solid rocket motor facility in Mesquite is on plan and expected to be qualified and producing in 2028, and artillery test rounds are expected next year with production early in 2028.
"And we -- that facility is going up per plan, and we expect that to be qualified and producing solid rocket motors in 2028 over at Mesquite." — Danny Deep (PRESIDENT)
Marine revenue growth; Tech and Combat outlook
Q (David Strauss · Wells Fargo): Analyst asked whether Marine can repeat about $2 billion of annual revenue growth next year and whether Tech and Combat growth could accelerate above mid-single digits given bookings and backlog.
A: Danny said 2026 will grow close to $2 billion over 2025 but noted the law of large numbers makes repeating that absolute growth harder; he said Marine will continue to grow across Electric Boat, Bath Iron Works and NASSCO though perhaps not at the same pace. On Combat, he said parts of the group grew strongly (e.g., ELS and OTS) while Land Systems is shifting toward development work; Combat should grow in the high single digits in 2026 versus 2025 and they expect continued robust growth and backlog conversion.
"We will continue to grow, however, and we fully expect to and not just at Electric Boat, but also at Bath Iron Works and at NASSCO." — Danny Deep (PRESIDENT)