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Why General Dynamics’ Expanding Backlog Is Emerging as the Stock’s Most Underrated Needle Mover!

General Dynamics Corporation reported robust financial performance for the fourth quarter and the full fiscal year of 2025, reflecting substantial growth across its key business units. The company achieved quarterly earnings of $4.17 per diluted share on a revenue of $14.379 billion, representing a 7.8% increase compared to the same period last year. Operating earnings grew by 2% in the quarter, while net earnings and diluted EPS remained stable year-over-year, primarily due to exceptional prior-year margins spurred by one-time items. Aerospace emerged as a strong performer, clocking a 16.5% revenue increase year-over-year, driven largely by Gulfstream deliveries of 158 new aircraft, 22 more than in 2024. Despite this, quarterly operating earnings for Aerospace saw a decline attributed to fewer G600 aircraft deliveries, tariff impositions, and higher overheads. Nevertheless, sequential improvements and a healthy book-to-bill ratio signal ongoing demand and potential for future growth.