General Dynamics reported second-quarter 2015 earnings from continuing operations of $752 million, a 16.4 percent increase over Q2 2014, on revenue of $7.9 billion.
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Diluted earnings per share (EPS) were $2.27 per share compared to $1.88 in second-quarter 2014, a 20.7 percent increase.
"General Dynamics' performance was rock solid this quarter, rounding out a strong first half. We continue to have impressive operating leverage with operating earnings at more than $1 billion, up 13.9 percent over the prior year's quarter," said Phebe N. Novakovic, chairman and chief executive officer.
"Year to date, our revenue is up 6.3 percent across the business with organic growth in all four segments, including the defense segments."
Company-wide operating margins for the second quarter of 2015 were 13.7 percent, with margin expansion in three of the company's four business groups compared to the second quarter of 2014.
Net cash provided by operating activities in the quarter totaled $603 million. Free cash flow from operations, defined as net cash provided by operating activities less capital expenditures, was $511 million.
The company repurchased 7.5 million of its outstanding shares in the second quarter. Year-to-date, the company has repurchased 12.1 million outstanding shares.
General Dynamics' backlog remained steady at the end of second-quarter 2015, with funded backlog at $55.4 billion and total backlog of $70 billion. Aerospace backlog increased by seven percent in the quarter, with strong order activity across the product line.
Information Systems and Technology also had several notable orders in the quarter leading to higher backlog. Estimated potential contract value, representing management's estimate of value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $25.6 billion.
Total potential contract value, the sum of all backlog components, was $95.6 billion at the end of the quarter. ■