General Dynamics boasted nearly $12.91 billion in revenue in the third quarter of 2025 as well as increased submarine production, according to the company’s earnings call Friday. But gains were tempered by worries about the potential effects of an extended government shutdown.
“On a company-wide basis, we see annual revenue of around $52 billion and margins of around 10.3 percent,” General Dynamics CEO Phebe Novakovic said of the company’s outlook for the rest of the year.
But, she said: “Let me remind you that we’re in the midst of a government shutdown with no end in sight. The longer it lasts, the more it will impact us, particularly the shorter cycle businesses. So forecasts in this environment are difficult at best, and less reliable than one would hope.”
Government workers who handle contracts have already begun to feel those effects.
“On contracts, in some instances, the contracting people have been sent home,” Novakovic said. “So, that will push contracting into whatever week, quarter, or month that the government resumes. I think from our point of view, we’ve looked at this [on] a rolling basis since it is unknowable when the shutdown ends.”
Should the shutdown extend into next year, she said, “that increases the likelihood that it’ll have additional impacts on particular lines of business that begin to run out of funding. So, there’s an awful lot of uncertainty, and in that uncertain environment, I think we’re taking a prudent approach.”
Shipbuilding saw about $4.1 billion in revenue growth in the third quarter, up by about $497 million from the same quarter last year, with “increased throughput” in construction of the Columbia-class and Virginia-class submarines.
The company also highlighted steady build progress for the first Columbia-class submarine, saying they expect all major modules to be delivered to the Electric Boat facility in Groton, Conn.
“The first Columbia is about 60 percent complete. By the end of this year, we’ll have all the major modules at Groton ready for assembly and test,” Novakovic said. “It’s a pretty rigorous, as you can imagine, first-of-class testing program. We’ll work in coordination, hand in glove with the Navy. We’re moving, we’re working very hard to move that ship to the left along with our customer and along with the supply chain. We’ve seen some improvements, again, from the supply chain…This next year will be pivotal.”
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