General Dynamics Corporation (NYSE:GD) Q3 2023 Earnings Conference Call October 25, 2023 9:00 AM ET

Company Participants

Jason Aiken - Executive Vice President, Chief Financial Officer

Bill Moss - Vice President, Controller

Nicole Shelton - Vice President, Investor Relations

Conference Call Participants

Peter Arment - Baird

Davis Strauss - Barclays

Ken Herbert - RBC Capital Markets

Robert Stallard - Vertical Research

Scott Deuschle - Deutsche Bank

Kristine Liwag - Morgan Stanley

Seth Seifman - JP Morgan

Doug Harned - Bernstein

Cai von Rumohr - TD Cowen

Ron Epstein - Bank of America

Operator

Ladies and gentlemen, good morning and welcome to the General Dynamics third quarter 2023 earnings conference call.

All participants will be in a listen-only mode, and please note that this event is being recorded. After the speakers’ remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press the star key followed by the number one on your telephone keypad. If you would like to withdraw your question, press star, one a second time.

Thank you, and I would now like to turn the conference over to Nicole Shelton, Vice President of Investor Relations. Please go ahead.

Nicole Shelton

Thank you Operator, and good morning everyone. Welcome to the General Dynamics third quarter 2023 earnings conference call.

Any forward-looking statements made today represent our estimates regarding the company’s outlook. These estimates are subject to some risks and uncertainties. Additional information regarding these factors is contained in the company’s 10-K, 10-Q, and 8-K filings.

We will also refer to certain non-GAAP financial measures. For additional disclosures about these non-GAAP measures, including reconciliations to comparable GAAP measures, please see the press release and slides that accompany this webcast, which are available on the Investor Relations page of our website, investorrelations.gd.com.

On the call today are Jason Aiken, Executive Vice President, Technologies and Chief Financial Officer, and Bill Moss, Vice President and Controller.

With the introductions complete, I’ll turn the call over to Jason.

Jason Aiken

Thank you Nicole. Good morning everyone and thanks for being with us. The first thing I’ll note is that our Chairman and CEO, Phebe Novakovic, is under the weather today, so I’ll be conducting today’s call along with Bill.

Earlier this morning, we reported earnings of $3.04 per diluted share on revenue of $10.6 billion, operating earnings of $1.06 billion and net income of $836 million. Revenue was up $596 million or 6% against the third quarter last year. Operating earnings were down $41 million or 3.7%. Net earnings were down $66 million and earnings per share were down 6.7%. The quarter-over-quarter results show significant growth in revenue but a 100 basis point contraction in operating margin.