General Dynamics Corporation

Good morning and welcome to the General Dynamics third quarter 2026 earnings conference call. All participants will be in listen-only mode. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. Please note, this event is being recorded. I would now like to turn the conference over to Nicole Shelton, Vice President of Investor Relations. Please go ahead.

Thank you operator and good morning everyone. Welcome to the General Dynamics third quarter 2026 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 10-K, 10-Q, and 8-K filings. We will also refer to certain non-GAAP financial measures. For additional disclosures about these non-GAAP measures, including reconciliations to comparable gap measures, please see the slides that accompany this webcast which are available on the investor relations page of our website, investorrelations.gd.com. On the call today are Phebe Novakovic, Chairman and Chief Executive Officer, Danny Deep, President, and Kim Kuryea, Chief Financial Officer. I will now turn the call over to Phebe.

Thank you, Nicole. Good morning, everyone, and thanks for being with us. For those of you who are on our second quarter call, you may recall that we described it as a superb quarter, better than a powerful first quarter. Well, this quarter is even better. The quarter over year-ago quarter results, the sequential results, and the year-to-date results are all very good, as you will learn from these remarks and the charts attached to our press release. So now let's proceed to the more prosaic. We reported earnings of $4.49 per diluted share on revenue of $14.57 billion, operating earnings of $1,527,000,000, and net earnings of $1,229,000,000. Against the year-ago quarter, revenue is up 12.9%. Importantly, operating earnings are up 14.7% and net earnings are up 16.1%. As a result, earnings per diluted share are up 61 cents, or 15.7%. The operating margin for the entire company is 10.5%, a 20 basis point improvement over the year-ago quarter, which coupled with the revenue growth led to the very strong earnings growth. While marine led the way on revenue increases, each of our other three segments had revenue increases as well. With respect to operating earnings, aerospace and marine led the way with strong double-digit increases as each of our shipyards has steadily improved its throughput and productivity. Sequentially, against a superb second quarter, revenue is up 3.3%, operating earnings are up 4.6%, and diluted earnings per share are up about 6%. On a year-to-date basis, revenue is up 10.4%, operating earnings are up 12.9%, and Earnings Per Share are up 13.6% benefited by a 30 basis point improvement in operating margin. In short summary, we enjoy double digit increases in revenue, operating earnings, net earnings and diluted earnings per share on both a quarter over quarter and year to date basis. We also beat consensus by 37 cents in the quarter on more revenue and operating earnings than anticipated by the sell side In short, it is a splendid quarter. Year-to-date figures leave us in a place where we need to adjust our forecast for the year. I will do that later in these remarks. Let me ask our CFO, Kim Kuryea, to provide detail on our strong order activity, rapidly growing backlog, and continued efficient cash generation, as well as other relevant financial data.