General Dynamics Corporation (GD): Business Model Canvas [Dec-2025 Updated]

You're looking at General Dynamics Corporation (GD), and honestly, the sheer scale of their forward visibility is what immediately grabs my attention as an analyst. This defense and aerospace powerhouse is currently sitting on a record total contract value of over $160 billion, which directly fuels their projected $51.2 billion revenue for the 2025 fiscal year, split across submarines, Gulfstream jets, and critical IT services. To understand how this complex, multi-decade machine generates that kind of reliable cash flow-from the Navy's nuclear programs to the high-end private jet market-you need to see the blueprint. Keep reading below for the full, detailed Business Model Canvas.

General Dynamics Corporation (GD) - Canvas Business Model: Key Partnerships

You're looking at the critical external relationships General Dynamics Corporation relies on to secure its massive backlog and drive future growth. These aren't just vendors; they are strategic enablers across the defense, technology, and maritime sectors. Honestly, without these deep ties, the reported backlog wouldn't be possible.

U.S. Department of Defense (DoD) for long-term, high-value contracts

The U.S. DoD remains the bedrock partner. For instance, General Dynamics Information Technology (GDIT), a unit of General Dynamics Corporation, secured the Enterprise Mission Information Technology Services 2 (EMITS 2) task order in September 2025, valued at $1.25 billion, to support U.S. Army Europe and Africa headquarters and subordinate organizations. Just before that, in May 2025, GDIT won a $1.5 billion contract to modernize U.S. Strategic Command's (STRATCOM) enterprise IT systems. Also, General Dynamics Electric Boat received a $1.85 billion contract modification in July 2025 for long lead time material and preliminary construction for Virginia-class Block VI submarines, with work extending to September 2035. These large, multi-year awards are what build the massive order book. As of the end of the third quarter of 2025, General Dynamics' total backlog stood at $109.9 billion, with the defense segments showing a book-to-bill ratio of 1.6-to-1 for the quarter.

Strategic technology firms (Palantir, AWS) for AI and cloud integration

The technology partnerships are focused on integrating advanced capabilities into defense platforms and services. GDIT expanded its relationship with Amazon Web Services (AWS) in March 2025 through a Strategic Collaboration Agreement. This collaboration specifically targets developing solutions in cybersecurity, artificial intelligence (AI), and cloud migration for defense and intelligence agencies. Separately, General Dynamics Land Systems is working with Palantir Technologies to embed advanced software into combat platforms. Palantir and AWS also have their own deep collaboration, which benefits General Dynamics by providing access to secure, accredited AI platforms like Palantir's AIP on AWS infrastructure.

International defense allies, including NATO countries, for land and maritime systems

General Dynamics Corporation actively partners with international allies, particularly within the NATO framework. GDIT's $1.25 billion Army IT contract explicitly includes support for NATO and other partners in Europe and Africa. On the land systems side, General Dynamics European Land Systems-Bridge Systems (GDELS) secured a contract with the Norwegian Defence Materiel Agency (NDMA) for the M3 amphibious bridge system, valued at Nkr1.2bn ($118.3 million). This procurement makes Norway the sixth NATO member state to use the M3 system. Furthermore, in October 2025, Germany and the UK signed a contract exceeding €450 million ($520 million) for the joint procurement of the M3 vehicles.

South Korean shipbuilders (DSEC, Samsung Heavy Industries) for marine technology

General Dynamics NASSCO has formalized a significant technology alliance in the maritime sector. In December 2025, NASSCO signed a Memorandum of Agreement with South Korean firms DSEC Co., Ltd. and Samsung Heavy Industries (SHI). This tri-party collaboration focuses on advancing ship design and manufacturing automation technology within the U.S. market. The partnership specifically targets projects like the U.S. Navy's Next Generation Logistics Ship (NGLS). Dave Carver, president of General Dynamics NASSCO, noted that the alliance brings together over 160 years of combined shipbuilding and design experience. NASSCO has worked closely with DSEC for the last two decades.

Specialized suppliers for complex components and raw materials

The execution of major programs necessitates a vast network of specialized component and material providers. This dependency is clearly signaled in the submarine work. The $1.85 billion contract modification for Virginia-class submarines was explicitly stated to support supplier investment in the capacity and materials needed to achieve required production volumes. This highlights the reliance on a stable supply chain for long lead time materials, which is critical for programs scheduled out to 2035.

Here's a quick look at the scale of some recent contract activity driving these partnerships as of late 2025:

You should track the total estimated contract value, which was $167.7 billion at the end of Q3 2025, as a direct measure of the success of these external relationships. Finance: draft 13-week cash view by Friday.

General Dynamics Corporation (GD) - Canvas Business Model: Key Activities

You're looking at the core things General Dynamics Corporation (GD) does to bring in revenue and secure future work, based on their late 2025 performance indicators. Honestly, it's a mix of building massive hardware and providing high-tech services.

The company's key activities are deeply rooted in large, long-term government contracts and high-end private aviation manufacturing. This is reflected in their overall order intake for the third quarter of 2025, which hit $19.3 billion, pushing the total estimated contract value, or backlog, to $167.7 billion at the end of that period. That backlog gives you a solid runway for future execution.

Here's a breakdown of the main operational areas:

• Manufacturing nuclear-powered submarines (Columbia and Virginia-class).
• Designing and producing Gulfstream long-range business jets (G700/G800).
• Developing and upgrading land combat vehicles (M1 Abrams, Stryker).
• Providing mission-critical IT, cybersecurity, and cloud services (GDIT).
• Significant R&D investment in next-gen defense and aerospace technology.

The Marine Systems segment, which handles the submarines, is a massive driver of this backlog. For instance, General Dynamics Electric Boat Corp. secured a $2.28 billion contract modification in November 2025 for advance procurement and construction work on future Columbia-class fleet ballistic missile submarine hulls (SSBNs 828 through 832). This specific award allocated about $2.23 billion from the FY2026 National Sea-Based Deterrence Fund. Separately, for the Virginia-class attack boats, the Navy awarded contracts where General Dynamics Electric Boat Corp. is set to receive up to $17,152,265,971 for the final pair of Block V boats, with a cumulative contract change value reaching $18,445,959,971 if all options are exercised. The plan is to reach a production rate of two Virginia-class submarines per year by 2028.

In Aerospace, the focus is on delivering the latest long-range jets. Gulfstream delivered 113 aircraft in the first nine months of 2025, the highest figure for that period in over a decade. The third quarter alone saw 39 deliveries, which included 13 G700s and the first three G800s. This strong delivery pace led General Dynamics to raise its full-year 2025 guidance for the Aerospace segment to revenue of $13.2 billion and 153 to 157 total aircraft deliveries.

The Technologies segment, which houses GDIT, is active in high-end IT and cyber work. GDIT recently secured a contract valued at over $850 million in June 2025 to bolster the U.S. Special Operations Command (SOCOM) with cloud and AI solutions. This follows a significant $5.6 billion contract award for the Mission Partner Environment announced in late 2024.

To keep these activities moving, General Dynamics invests heavily. The company's R&D spending reached $968 million in 2024. Furthermore, GDIT's support for hypersonic programs is tied into what analysts estimate as a $6.9 billion hypersonic R&D budget for 2025.

Here's how the segments stacked up financially in the third quarter of 2025:

Overall, the company posted total revenue of $12.9 billion for Q3 2025, with operating earnings of $1.3 billion. The consolidated book-to-bill ratio was 1.5-to-1 for the quarter. Finance: draft 13-week cash view by Friday.

General Dynamics Corporation (GD) - Canvas Business Model: Key Resources

The foundation of General Dynamics Corporation's business model rests on a portfolio of highly specialized and proprietary assets, which are critical for securing and executing large-scale defense and aerospace programs. As of the third quarter of 2025, the company reported a total estimated contract value, which combines backlog and estimated potential contract value, of $167.7 billion.

You can see the scale of these core tangible and human resources in the table below, based on late 2025 figures:

The physical assets are inherently specialized, involving specialized, high-security manufacturing facilities and shipyards necessary for building nuclear submarines, destroyers, and complex combat vehicles. This infrastructure supports the defense segments, which held a total backlog of $89.3 billion as of September 28, 2025.

The intangible assets are just as vital. General Dynamics Corporation holds significant Intellectual Property (IP) in naval architecture and combat systems, which is protected by the nature of its prime contracting work for critical U.S. defense programs. This IP is directly tied to the execution of major programs like the Virginia-class submarines and the Abrams tank.

The human capital is a defining resource. The company relies on a highly skilled, cleared engineering and technical workforce of over 110,000 people, with approximately 45,000 specifically identified as engineers and technical professionals. This workforce is essential for maintaining security clearances and executing complex defense and aerospace work. The company's structure includes about 11,000 IT professionals within its Technologies segment.

Finally, the Gulfstream brand equity and global service network represent a premium resource in the business aviation market. The strength of this brand is evidenced by the Aerospace segment's performance, which delivered 39 aircraft in the third quarter of 2025, including 13 G700s. The segment's order book at the end of Q3 2025 stood at $20.6 billion.

Finance: draft 13-week cash view by Friday.

General Dynamics Corporation (GD) - Canvas Business Model: Value Propositions

You're looking at the core promises General Dynamics Corporation is delivering to its customers as of late 2025. These aren't just vague statements; they are backed by massive, multi-year commitments and recent financial performance.

Long-term national security and strategic deterrence (submarines).

General Dynamics Electric Boat is central to the nation's sea-based nuclear deterrent. This value proposition is quantified by significant, multi-decade program funding. For instance, in November 2025, General Dynamics was awarded a $2.28 billion contract modification to accelerate the procurement and construction of five future Columbia-class ballistic missile submarine hulls (SSBNs 828-832). The work is scheduled to be finished by December 2031. This reinforces the commitment to the Columbia class, which is intended to replace the aging Ohio-class fleet and form the core of the United States' strategic deterrence posture for decades. The funding for this specific modification is primarily drawn from the Fiscal 2026 National Sea-Based Deterrence Fund, totaling approximately $2.23 billion, with the remainder from FY2026 Navy procurement accounts.

Superior mobility and lethality for ground forces (combat vehicles).

The value here is delivering proven, modernized land combat systems. While specific vehicle unit numbers aren't detailed in the latest reports, the performance of the relevant segment shows the scale of this commitment. The Marine Systems segment, which supports ground vehicle programs and submarine construction, reported revenue of $4.1 billion in the third quarter of 2025, with operating earnings reaching $291 million. The Combat Systems segment itself posted revenue of $2.28 billion in the second quarter of 2025, achieving an operating margin of 14.2% in that period. This segment also secured a $640 million award for lead-yard services, development, and design for Virginia-class submarines, showing the interconnected nature of their defense portfolio.

High-performance, ultra-long-range private air travel (Gulfstream).

General Dynamics Corporation delivers top-tier business aviation, evidenced by strong delivery rates and revenue growth as supply chains improved. The company issued improved full-year 2025 guidance for its Aerospace segment, projecting revenue of $13.2 billion and deliveries between 153-157 aircraft. The third quarter of 2025 was particularly strong, with 39 business jets delivered, a 39% increase from the same period in 2024. This Q3 tally included 13 G700s and the first 3 G800s delivered. For the first nine months of 2025, Gulfstream handed over 113 aircraft, marking the highest nine-month delivery total in at least a decade. The segment's Q3 2025 revenue soared 30.3% year-over-year to $3.234 billion, with operating earnings jumping 41% to $430 million.

You can see the tangible output from the Aerospace segment here:

• Nine-Month 2025 Deliveries: 113 aircraft
• Q3 2025 Deliveries: 39 jets
• Q3 2025 Aerospace Revenue: $3.234 billion
• Aerospace Backlog (End Q3 2025): $20.6 billion

Modern, secure digital backbone for government IT operations (GDIT).

General Dynamics Information Technology (GDIT) provides mission-critical technology infrastructure. A prime example of this value is the $1.5 billion enterprise IT modernization contract awarded by the U.S. Strategic Command (STRATCOM) in May 2025. This contract covers a one-year base period plus six option years, focusing on leveraging digital engineering, AI/Machine Learning integration, and transitioning STRATCOM to a hybrid cloud environment to protect nuclear command and control systems. Furthermore, GDIT secured a $1.25 billion Enterprise Mission Information Technology Services 2 Task Order to support U.S. Army Europe and Africa in October 2025.

Reliable execution on multi-decade, complex government programs.

The overall health of General Dynamics Corporation's order book demonstrates its proven ability to secure and execute on long-term, complex work. The company's total backlog reached a record $109.86 billion at the end of the third quarter of 2025. This represents an 18.6% increase from the prior year. The defense segments, which house the submarine and combat vehicle work, achieved a book-to-bill ratio of 1.6-to-1 for the third quarter and the first nine months of 2025, meaning new orders significantly outpaced revenue recognized. The total estimated contract value, which includes unfunded portions, stood at $167.74 billion as of late Q3 2025.

Here is a look at the overall commitment General Dynamics Corporation has on the books:

Finance: draft 13-week cash view by Friday.

General Dynamics Corporation (GD) - Canvas Business Model: Customer Relationships

You're looking at a business model where the customer relationship is less about transactional volume and more about deep, embedded partnership, especially on the defense side. For General Dynamics Corporation (GD), these relationships are foundational, often spanning decades.

Deep, institutional, and long-term relationships with government agencies.

The core of General Dynamics Corporation's customer relationship strategy rests with federal government agencies, primarily the U.S. Department of Defense. This is evidenced by the sheer scale of future work under contract. As of the third quarter of 2025, the total estimated contract value, which includes funded backlog and management's estimate of unfunded potential, stood at a massive $167.7 billion. The funded backlog alone at the end of Q3 2025 was $109.9 billion. The defense segments-Marine Systems, Combat Systems, and Technologies-accounted for $89.3 billion of that total backlog. The stickiness of these relationships is further shown by the defense segments achieving a book-to-bill ratio of 1.6-to-1 in the third quarter of 2025, meaning orders significantly outpaced revenue recognized. For instance, the Marine Systems segment saw revenue rise nearly 14% year-over-year in Q3 2025, driven by long-term shipbuilding programs.

The nature of these relationships requires General Dynamics Corporation to operate as an extension of the customer's own capabilities. This is visible across the defense portfolio:

• The Combat Systems segment produces foundational platforms like the Abrams main battle tank and Stryker wheeled combat vehicle for the U.S. Army customer.
• The Technologies segment, through GDIT, serves government markets with IT and mission systems, recently opening a Mission Emerge Center in Springfield, Virginia, for rapid prototyping with intelligence and defense agencies.
• The Marine Systems segment is engaged in multi-year, multi-decade construction of Virginia-class and Columbia-class submarines.

Dedicated program management teams for major defense contracts.

Managing contracts valued in the tens of billions requires dedicated oversight. While specific team sizes aren't public, the financial results confirm the operational structure supports these massive commitments. For example, the Technologies business saw Q2 2025 revenue rise 5.5% to $3.5 billion, demonstrating the ongoing execution against large, managed IT contracts. The company's overall commitment to future work is clear from the order intake:

Direct, high-touch sales and service for Gulfstream private jet customers.

The Aerospace segment, which includes Gulfstream, operates a very different, yet equally high-touch, relationship model focused on high-net-worth individuals and corporate flight departments. The recovery in this area is pronounced. Gulfstream delivered 39 business jets in the third quarter of 2025, a 39% jump from the 28 delivered in Q3 2024. For the first nine months of 2025, Gulfstream handed over 113 aircraft, the most in that period for at least a decade. The segment's Q3 2025 revenue rose 30% year-over-year. The introduction of new models like the G800, which received FAA certification in April 2025, requires direct engagement with customers on performance and delivery schedules. General Dynamics Corporation projects the full-year 2025 Aerospace revenue to reach $13.2 billion.

Contractual, performance-based service level agreements (SLAs) for IT services.

For the Technologies segment, particularly the General Dynamics Information Technology (GDIT) business, relationships are governed by strict contractual terms, including SLAs for uptime, security, and mission readiness. The focus is on anticipating future needs, as stated by GDIT leadership: "What the customer is telling us now is that we need to anticipate what is coming next". This anticipatory investment, such as the new Mission Emerge Center, is a direct response to evolving customer requirements under existing and anticipated contracts. In 2024, the Technologies segment achieved a 1.1 times book-to-bill ratio, showing strong forward-looking order flow tied to these service agreements.

Collaborative, defintely sticky relationships built on trust and security clearances.

The prerequisite for all defense and many technology relationships is trust, underpinned by security clearances and proven performance. The company employs more than 110,000 people worldwide, many of whom hold necessary clearances. This deep integration is what makes the relationships sticky; switching providers for complex systems like submarines or integrated IT networks is prohibitively costly and risky for the customer. The high degree of confidence from the investment community reflects this stability, with institutional ownership at 85.88% as of Q3 2025. The company's dividend policy, which saw its 28th consecutive annual increase in March 2025 with a new quarterly dividend of $1.50 per share, also signals reliability to stakeholders who are, in effect, long-term partners.

General Dynamics Corporation (GD) - Canvas Business Model: Channels

You're looking at how General Dynamics Corporation moves its high-value defense systems and business jets to the end-user. It's a mix of direct government negotiation and a high-touch, global private sales force. The numbers from the third quarter and the full-year 2025 guidance tell a clear story about where the revenue is flowing.

The defense side relies on direct, large-scale contracting, which feeds the massive backlog. For instance, the total estimated contract value for General Dynamics Corporation stood at $167.7 billion at the end of the third quarter of 2025, with the firm backlog at $109.9 billion. This backlog is the direct result of these contracting channels.

Direct sales and contracting offices to the U.S. Government (DoD, Army, Navy) are the bedrock for the defense segments. You see this in the Marine Systems segment, which saw revenue of $11.9 billion for the first nine months of 2025, an increase of 14.7% year-over-year, largely due to submarine programs. The Combat Systems segment is expected to generate around $9.2 billion in revenue for full-year 2025. Specific large awards highlight this channel, such as the $7.8 billion contract secured in June 2025 for Virginia-class submarine advanced procurement. Furthermore, General Dynamics Information Technology (GDIT) secured a $1.25 billion contract with the U.S. Army Europe and Africa in October 2025. Payments to GDIT over the last year totaled $4,456,185,045.

Gulfstream's global sales force and wholly-owned service centers handle the private aviation side, which is a direct-to-customer channel for high-value assets. This segment is performing exceptionally well. General Dynamics Corporation expects its Aerospace business to generate $13.2 billion in revenue for the full year 2025. For the first nine months of 2025, the division brought in $9.32 billion in revenue. The sales momentum is clear:

• Gulfstream sales climbed 56% year-on-year in Q3 2025.
• Deliveries for the first nine months of 2025 reached 113 aircraft, a decade high.
• The segment's operating margin for the first nine months of 2025 was 13.6%.
• The Aerospace segment's book-to-bill ratio was 1.3-to-1 for the third quarter of 2025.

Direct-to-customer delivery of high-value, custom-built assets is most evident in the Gulfstream business jet sales, where the newest, priciest models are moving. The company expects to deliver between 153-157 aircraft in total for 2025. The third quarter alone saw 39 business jets delivered, up 39% from the same period in 2024. This channel is supported by a strong aftermarket services business, which contributed to the Aerospace segment's Q3 2025 revenue of $3.2 billion.

Here's a quick look at how the key revenue-driving channels stack up based on the latest segment expectations and Q3 performance:

The reliance on direct government contracting is also visible in the defense segment book-to-bill ratio for the third quarter, which was 1.6-to-1, indicating strong order intake relative to revenue recognized. This suggests a healthy pipeline flowing through those government offices.

Finance: draft 13-week cash view by Friday.

General Dynamics Corporation (GD) - Canvas Business Model: Customer Segments

You're looking at the core revenue drivers for General Dynamics Corporation as of late 2025, which are essentially its customer segments. The distribution of revenue from fiscal year 2024 gives you a solid baseline for where the money is coming from, even as 2025 projections show shifts.

Here is the breakdown of General Dynamics Corporation's revenue by segment for the full year 2024, which maps directly to the customer concentration:

The U.S. Government is the primary anchor, spread across Marine Systems, Combat Systems, and Technologies. For instance, the Marine Systems segment, heavily reliant on the U.S. Navy, is projected to generate approximately $16 billion in revenue for 2025, with an expected operating margin of around 7%.

The U.S. Government (primary customer, especially Navy and Army) is served by the defense segments. The Marine Systems segment's performance in the first nine months of 2025 was strong, reporting revenue of $11.9 billion, up 14.7% year-over-year, largely due to the Virginia-class and Columbia-class submarine programs.

International defense ministries and allied nations form a key part of the Combat Systems customer base. This segment, which makes weapons systems and military vehicles, saw its revenue increase by 1.8% to $2.3 billion in the third quarter of 2025. Revenue growth here is specifically noted as being driven by international customers and M1 Abrams upgrade demand.

Ultra-high-net-worth individuals and large corporations for business jets are the Aerospace segment customers. This segment is definitely seeing a rebound; its revenue for the first nine months of 2025 is projected to be around $13.2 billion, targeting an operating margin of approximately 13.3%. Look at the Gulfstream deliveries: they jumped to 39 units in the third quarter of 2025, up from 28 units in the year-ago quarter.

The U.S. Intelligence Community and federal civilian agencies are the main consumers of the Technologies segment's offerings. This segment is projected to hit approximately $13.5 billion in revenue for 2025. The backlog for this segment stood at $14,357 million at the end of the third quarter of 2025, showing sustained demand for cybersecurity and IT solutions.

Here are some key figures related to these customer-facing segments through the first nine months of 2025:

• Consolidated revenue for the first nine months of 2025 was $38.2 billion, an 11.0% increase from the prior year.
• Combat Systems segment backlog fell to $16,928 million as production outpaced orders in some areas.
• Aerospace segment's operating margin expanded to 13.6% in the first nine months of 2025.
• The total consolidated backlog for General Dynamics Corporation ended the third quarter of 2025 at $109.9 billion.
• The company reported $3.0 billion in free cash flow for the first nine months of 2025.

Finance: draft 13-week cash view by Friday.

General Dynamics Corporation (GD) - Canvas Business Model: Cost Structure

When you look at General Dynamics Corporation's cost base, you're looking at a structure heavily weighted toward production and specialized talent. This isn't a software company where variable costs are low; this is heavy industry, meaning a lot of money is tied up before a single product is delivered.

The sheer scale of their fixed and semi-fixed costs is significant, driven by the need to maintain massive, specialized assets. Think about Electric Boat, which builds nuclear submarines-that facility doesn't just sit idle when a new order isn't immediately starting. That overhead is a constant.

Here's a quick look at the major cost buckets based on the full-year 2024 financials, which gives you a sense of where the money goes:

• Implied Cost of Sales (Materials, Direct Labor, Manufacturing Overhead): approximately $40.36 Billion in 2024.
• Selling, General, and Administrative (SG&A) and other Operating Expenses (excluding R&D): approximately $1.602 Billion in 2024 (derived from $2.57B Total OpEx minus $0.968B R&D).
• Capital Expenditures (CapEx) in 2024: $916 million.
• Total Employees globally as of 2025 estimate: 117,000.

Labor is a huge component here. You're employing over 110,000 people worldwide, and many of those roles-especially in Marine Systems and Combat Systems-require deep, specialized knowledge or are covered by union agreements. These aren't easily substituted costs.

The investment in the future is also substantial. General Dynamics Corporation spent $968 million on Research and Development in 2024. That money fuels the next generation of business jets and defense platforms, but it's a non-negotiable expense to stay competitive in this sector.

The costs associated with compliance and security are baked into the operating expenses, but they are material. Maintaining the necessary security clearances for thousands of employees and facilities handling classified programs is a continuous, audited expense that competitors without this level of government work don't face.

To put the 2024 cost structure into perspective against the top line, here's a breakdown:

The material and supply chain costs are essentially captured in that massive implied Cost of Sales figure of over $40 billion. That covers everything from raw titanium for aerospace to complex electronics and propulsion systems for land and sea platforms. When supply chains tighten, as they did recently, those costs can spike, putting pressure on the $4.80 billion in Operating Profit General Dynamics Corporation achieved in 2024.

Finally, you have to factor in the long-term commitment represented by the backlog. The $90.6 billion in backlog at the end of 2024 represents future revenue, but it also locks in future production costs, labor commitments, and the ongoing need to fund working capital for long-term contracts.

General Dynamics Corporation (GD) - Canvas Business Model: Revenue Streams

General Dynamics Corporation's revenue streams are heavily weighted toward long-term, fixed-price, and cost-plus government contracts, which provide a stable foundation across its defense-focused segments. This structure is typical for major defense contractors dealing with complex, multi-year programs for the U.S. Government and its allies.

The company's expected total 2025 revenue is guided at approximately $51.2 billion. This figure is supported by strong projected performance across its four primary business segments, with significant contributions from both defense platforms and business aviation.

The revenue composition for General Dynamics Corporation as of late 2025 is detailed below by segment, based on guidance:

The Aerospace segment revenue, guided at approximately $13.2 billion for 2025, is driven by aircraft sales and aftermarket services, including deliveries of newer models like the G800 business jet. The Marine Systems revenue, anchored by submarine programs such as the Virginia-class and Columbia-class, is guided at approximately $16 billion.

The Technologies segment revenue, which includes IT and mission systems products serving government customers, is guided at approximately $13.5 billion in 2025. The remaining revenue stream comes from Combat Systems, which provides land combat vehicles and munitions.

The nature of the defense-related revenue streams involves several contract types:

• Long-term, fixed-price contracts, which offer predictable profit if costs are controlled.
• Cost-plus contracts, common for R&D and complex projects where costs are less certain, shifting risk to the government.
• Specific contract mechanisms include Cost-Plus-Fixed-Fee (CPFF) and Cost-Plus-Incentive-Fee (CPIF).