General Dynamics Corporation (NYSE:GD) Q2 2024 Earnings Conference Call July 24, 2024 9:00 AM ET

Company Participants

Nicole Shelton - Vice President, Investor Relations
Phebe Novakovic - Chairman and Chief Executive Officer
Kimberly Kuryea - Senior Vice President, Chief Financial Officer

Conference Call Participants

David Strauss - Barclays
Peter Arment - Baird
Robert Spingarn - Melius Research
Cai von Rumohr - TD Cowen
Jason Gursky - Citi
George Shapiro - Shapiro Research
Kenneth Herbert - RBC Capital Markets
Douglas Harned - Bernstein
Myles Walton - Wolfe Research
Scott Deuschle - Deutsche Bank
Robert Stallard - Vertical Research
Seth Seifman - JPMorgan
Ellen Page - Jefferies
Noah Poponak - Goldman Sachs
Matthew Akers - Wells Fargo

Operator

Good morning, and welcome to the General Dynamics Second Quarter 2024 Earnings Conference Call. All participants will be in listen-only mode. Please note, this event is being recorded. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions].

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 second quarter 2024 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 slides that accompany this webcast, which are available on the Investor Relations page of our website, investorrelations.gd.com.

On the call today are Phebe Novakovic, Chairman and Chief Executive Officer; and Kim Kuryea, Chief Financial Officer. I will now turn the call over to Phebe.

Phebe Novakovic

Thank you, Nicole. Good morning, everyone, and thanks for being with us. Earlier this morning, we reported earnings of $3.26 per diluted share on revenue of $11.98 billion, operating earnings of $1.16 billion and net income of $905 million. We enjoyed revenue increases at each of our four business segments compared to the year ago quarter. Across the company, revenue increased a strong 18%, with a 51% increase in our Aerospace segment and a 10% increase across our defense units, strong growth by any standard.

Importantly, operating earnings of $1.16 billion are up almost $200 million or 20.2%, demonstrating solid operating leverage. Similarly, net earnings are up 21.6% and earnings per share up 21% over the year ago quarter. You will note, we missed Street EPS consensus by $0.02 due entirely to the slip of 4 G700 deliveries from the last week in the quarter to the beginning Q3. One has since been delivered, three are imminent.