When global tension increases, defense shares are often seen as strategic investments.
In such uncertain times, governments all over the world increase protection costs to improve military training, modernization of technology and protect national interests. A company that benefits from this trend, the United States and its allies, the general dynamics of the American Aerospace and Defense Company, which provides a wide range of products and services (GD).
3.9% of the total dynamic shareholder of $ 75.4 billion, 3.5% gained a wider price. Given the rising demand for defense products and services, the Wall Street sees the bottom of the GD Foundation.
GD now get a purchase?
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General dynamics operate through four main business segments:
Aerospace
Sea systems
Battle systems
Technologies
Each of these sections contributes significantly to obtain income and protects the diversification from the crisis in any market. General dynamics, more than $ 12.2 billion, 13.9%, in all four operating segments, the annual first quarter reported in the first quarter. The profit per share was in an impressive confusion thanks to a warranty confusion and a suitable confusion against aerospace and disciplined expenses along all work lines.
Aerospace segment was performed very well in the first quarter. The revenue increased by 55.2% to $ 3.03 billion, and the supply of aircraft, including a long expected G700, is controlled by 50%.
The battle system segment earned $ 2.18 billion in revenue, more than 3.5%. This modest increase was abrams, Stryker vehicles and international programs were due to continuous demand. In the sect of the sea systems, more than 7.7% of the income, Columbia-Class Ballistic missile submarines, Virginia-class fast attack submarines and DDG-51 destroyers. The technology segment earned $ 3.43 billion in revenue, 6.8%. The segment, in the quarter, received orders equal order of 1.1x with a strong demand to provide important orders, reliable IT solutions, cyber defense and mission-critical infrastructure.
During the call of earnings, the leadership noted that contract requests and prizes to change the federal spending priorities are not in line with the tempo. Despite some parking lots and small contract delays, Aiken remained unchanged in the 2025 worldview and the general dynamics was well placed in the conservative decline and pipeline.
General Dynamics ended with a total of $ 89 billion, which reflects various long-term customer obligations in the defense and technology sectors. But the quarter was not without financial problems. The free money stream, mainly in the basis of inventory on basic programs, has reached a minus $ 290 million by the time of the setup and the revenues of the stages. Nevertheless, the general dynamics were committed to the return of shareholders. Dividents and shareholders who show the confidence of long-term money generation opportunities were returned $ 983 million and shareholders.
General Dynamics offers 2.1% of the dividend product. Dividend is a 34-year-old track record and 35%, a reasonable payment rate of GD is a dividend aristocracy. This involves GD not only to grow, but also to income-oriented investors. Capital expenditures in the neighborhood $ 142 million, production capacity, digital transformation and innovation, especially in investments in aerospace and shipyard, $ 142 million. At the end of the quarter, the total debt and equivalents of total dynamics were $ 1.2 billion and $ 9.6 billion in total debt.
Capital restrictions and tariff indefinite occurrences, the company’s retrancement is powerful, the edges are improving and shows customer demand and sustainable durability. In addition, the shareholder’s refund remains strong and management has laid a positive tone for the rest of the year.
Analysts predict that the total dynamics will increase by 9.6% in 2025 and increase by 11.8% in 2026.
In general, the street gives him a “mild purchase” rate. Of the 22 analysts covering the shares, eight, “a strong purchase” rating, 13 “tut”, he said. The average target price for the share is $ 292 close to the current trade price. The $ 330 price estimate shows that the Fund can rise to 15.4% from current levels.
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On the day, Susra Mohanty did not have any positions (or indirectly or indirect) in this article. All information and information in this article are for informational purposes only. This article was originally published Barchart.com
