General Dynamics Corporation

good morning and welcome to the general dynamics q4 2022 conference call all participants will be in listen only mode please note this event is being recorded i would now like to turn the call over to howard rubel vice president of investor relations please go ahead thank you operator and good morning everyone welcome to the general dynamics fourth quarter and full year

2022 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 10K, 10Q, and 8K filings. We will also refer to certain non-GAAP financial measures. For additional disclosures about these non-GAAP measures, including reconciliation to comparable GAAP measures, please see the press release and slides that accompany this webcast, which are available on the Investor Relations page of our website, InvestorRelations.gd.com. With my introduction complete, I turn the call over to our Chairman and Chief Executive Officer, Phoebe Novakovic.

Thank you, Howard. Good morning, everyone, and thanks for being with us. Earlier this morning, we reported earnings of $3.58. for diluted share on revenue of $10 billion, $850 million, operating earnings of $1 billion, $230 million, and net earnings of $992 million. Revenue is up $559 million, or 5.4%, against the fourth quarter last year. Operating earnings are up $41 million, or 3.5%. Net earnings are up $40 million, or 4.2%, and earnings per share are up 19 cents, or 5.6%. So the quarter-over-quarter results compare very favorably and are in most respects consistent with our forecast and sell-side consensus. The sequential results are even better. Here we beat last quarter's revenue by $876 million, or 8.8%, operating earnings by $129 million, or 11.7%. net earnings by $90 million, or 10%, and EPS by 32 cents, a 9.8% improvement. As promised, that it would be, the final quarter is our strongest of the year in both revenue and earnings. In fact, earnings per share, operating margins, net earnings, and return on sales improved quarter over the previous quarter throughout the year. It was a nice, steady progression of sequential improvements. For the full year, we had revenue of $39.4 billion, up 2.4%, net earnings of $3.4 billion, up 4.1%, and earnings per fully diluted share of $12.19, up 64 cents, a 5.5% increase. So overall, the year was also reasonably consistent with our forecast and modestly better than the sell side. It was a very solid year in a difficult environment. Let me ask Jason to provide detail on our overall order activity, very strong backlog, and cash performance in the quarter and the year.