General Dynamics reported 10.3% revenue growth and $1.952 billion free cash flow, while Lockheed Martin faced $291 million cash burn.
General Dynamics (GD) posted Q1 2026 revenue of $13.48 billion, up 10.3% year over year, with diluted EPS of $4.10. Marine Systems operating earnings surged 26.4%, driven by Columbia and Virginia-class submarine programs at Electric Boat and Bath Iron Works. Free cash flow reached $1.952 billion, marking a strong quarterly performance.
Lockheed Martin (LMT) reported a $291 million free cash flow burn due to F-16 program charges and other costs. Its $3.45 billion acquisition of Ultra Maritime focuses on sonar sensors for GD-built submarines rather than competing in shipbuilding. GD’s backlog and 63% increase in Gulfstream aerospace orders further strengthened its position.
GD’s stock saw eight director purchases at $360, signaling confidence in its growth trajectory. The company’s focus on naval dominance contrasts with Lockheed’s strategic shift toward sensor technology.