General Dynamics Corporation (GD): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how a company can be a global force in both aerospace and defense? General Dynamics Corporation (GD) stands as a testament to this, holding a significant position as the fifth largest defense contractor worldwide as of 2020. But what exactly does this aerospace and defense giant do, and how does it generate its impressive $47.7 billion in revenue as of 2024? Keep reading to discover the fascinating story behind this Fortune 100 company, from its historical roots to its current operations across 45 countries.

General Dynamics Corporation (GD) History

Founding Timeline

Year established

The company was officially formed in 1952.

Original location

The original headquarters were established in Wilmington, Delaware.

Founding team members

It was created through the consolidation of the Electric Boat Company and the Consolidated Vultee Aircraft Corporation (Convair). Key figures include John Jay Hopkins, who played a crucial role in merging these entities.

Initial capital/funding

Details on the specific initial capital are not readily available, but the merger combined the substantial assets and ongoing projects of Electric Boat and Convair, representing a significant financial foundation.

Evolution Milestones

Transformative Moments

• Nuclear Submarine Development: The creation of the USS Nautilus in 1954 was a landmark achievement, establishing the company as a leader in advanced naval technology.
• Diversification and Strategic Shifts:
  • The acquisition of Cessna in 1985 and subsequent divestiture in 1992 reflect a strategic pivot in response to market conditions.
  • The sale of its aerospace division in the 1990s to focus on core defense capabilities marked a significant strategic realignment.
• Re-entry into Aerospace with Gulfstream: The 1999 acquisition of Gulfstream Aerospace was a transformative move, re-establishing a presence in the aerospace sector with a focus on high-margin business jets.
• Expansion into IT Services: The acquisition of CSRA in 2018 for approximately $9.6 billion significantly expanded capabilities in IT and professional services, aligning with the growing importance of technology in defense and government sectors.

For more insights into the company's investor profile, check out this article: Exploring General Dynamics Corporation (GD) Investor Profile: Who’s Buying and Why?

General Dynamics Corporation (GD) Ownership Structure

General Dynamics Corporation is a publicly traded company, meaning its ownership is distributed among shareholders who can buy and sell shares on the open market. Institutional investors and mutual funds are the primary holders of the company’s stock.

General Dynamics Corporation's Current Status

General Dynamics Corporation is a public company. Its shares are traded on the New York Stock Exchange (NYSE) under the ticker symbol GD.

General Dynamics Corporation's Ownership Breakdown

The ownership of General Dynamics is distributed among a mix of institutional, retail, and insider shareholders. The largest portion of shares is held by institutional investors, which include mutual funds, pension funds, and hedge funds. These entities manage large sums of money on behalf of their clients and have a significant impact on the stock's trading volume.

General Dynamics Corporation's Leadership

As of April 2025, the leadership team guiding General Dynamics includes:

• Phebe N. Novakovic: Chairman and Chief Executive Officer
• Jason W. Aiken: Executive Vice President and Chief Financial Officer

Additional key leaders include:

• Mark L. Roualet: Executive Vice President, Combat Systems
• Christopher T. Marzilli: Executive Vice President, Technologies
• Gregory S. Gallopoulos: Senior Vice President, General Counsel and Secretary

These individuals, along with other senior executives, are responsible for the strategic direction and operational execution of General Dynamics' diverse business segments. For more insights into the company's financial performance, you might find this resource helpful: Breaking Down General Dynamics Corporation (GD) Financial Health: Key Insights for Investors.

General Dynamics Corporation (GD) Mission and Values

General Dynamics is dedicated to delivering superior products and services, prioritizing customer satisfaction, and achieving profitable growth, guided by a commitment to integrity and ethical conduct. These values drive the company's operations and strategic decisions, shaping its culture and long-term aspirations.

General Dynamics' Core Purpose

Official mission statement

General Dynamics' mission statement is: 'We deliver superior products and services to our customers. We strive for complete customer satisfaction. We grow the company profitably. We conduct our business with integrity.'

• Delivering Superior Products and Services: General Dynamics focuses on providing high-quality products and services that meet or exceed customer expectations.
• Striving for Complete Customer Satisfaction: The company aims to ensure that customers are fully satisfied with their offerings and overall experience.
• Growing the Company Profitably: General Dynamics is committed to achieving sustainable and profitable growth to ensure long-term success.
• Conducting Business with Integrity: The company emphasizes ethical behavior and integrity in all its business dealings.

Vision statement

While a specific, formally declared vision statement is not explicitly publicized, General Dynamics' actions and strategic goals suggest a vision focused on sustained leadership in the aerospace and defense industries. This vision encompasses:

• Technological Advancement: Continuously innovating and integrating advanced technologies into their products and services.
• Global Presence: Expanding and strengthening their presence in key global markets to serve a diverse customer base.
• Operational Excellence: Maintaining high standards of operational efficiency and effectiveness across all business segments.
• Skilled Workforce: Attracting, developing, and retaining a talented and skilled workforce to drive innovation and growth.

Company slogan/tagline

General Dynamics does not have a single, universally promoted slogan or tagline. However, the company's commitment to excellence and customer satisfaction is reflected in various communications and branding efforts. Here are a few themes that capture the essence of their approach:

• 'Applied Ingenuity': This encapsulates the company's focus on innovative solutions and practical applications of technology.
• 'Trusted Partner': Highlighting their dedication to building strong, reliable relationships with customers.
• 'Excellence in Defense': Underscoring their commitment to providing superior defense products and services.

To delve deeper into the mission, vision, and core values, explore Mission Statement, Vision, & Core Values of General Dynamics Corporation (GD).

General Dynamics Corporation (GD) How It Works

General Dynamics operates through various segments, delivering a broad portfolio of products and services in business aviation, shipbuilding, land systems, and technologies. These segments work independently and collaboratively to serve diverse global markets, leveraging technological expertise and integrated solutions.

General Dynamics Corporation's Product/Service Portfolio

General Dynamics Corporation's Operational Framework

General Dynamics employs a decentralized operational model, empowering individual business units while fostering collaboration and knowledge sharing across the enterprise. This approach allows each segment to maintain agility and responsiveness to market demands, while also leveraging the collective resources and expertise of the broader organization.

• Project Management: Utilizes robust project management methodologies to ensure timely and on-budget delivery of complex projects.
• Supply Chain Management: Employs a global supply chain network to source high-quality materials and components, optimizing costs and mitigating risks.
• Research and Development: Invests heavily in R&D to drive innovation and maintain a technological edge in its core markets. In 2024, the company's spending on research and development was $1.3 billion.
• Skunk Works Teams: Utilizes dedicated 'Skunk Works' teams to rapidly develop and prototype cutting-edge technologies and solutions.

To delve deeper into the company's investor profile, check out: Exploring General Dynamics Corporation (GD) Investor Profile: Who’s Buying and Why?

General Dynamics Corporation's Strategic Advantages

• Diversified Portfolio: Operates across multiple sectors, reducing reliance on any single market or customer.
• Strong Customer Relationships: Maintains long-standing relationships with key government and commercial clients.
• Technological Leadership: Invests in advanced technologies and innovation to maintain a competitive edge.
• Global Presence: Has a global footprint, allowing it to serve customers in diverse markets and geographies.
• Financial Strength: Possesses a strong financial position, enabling it to invest in growth opportunities and return value to shareholders. In 2024, the company had a revenue of $42.3 billion and net earnings of $3.3 billion.

General Dynamics Corporation (GD) How It Makes Money

General Dynamics generates revenue primarily through designing, developing, manufacturing, and servicing a diverse portfolio of defense and aerospace products and services for customers worldwide, mainly the U.S. Department of Defense and its allies.

General Dynamics Corporation's Revenue Breakdown

Here's a look at General Dynamics' revenue streams, based on the 2024 fiscal year:

General Dynamics Corporation's Business Economics

General Dynamics operates within the defense and aerospace industry, characterized by high barriers to entry due to stringent regulatory requirements, significant capital investments, and advanced technological expertise. Its business economics are influenced by:

• Long-Term Contracts: A significant portion of General Dynamics' revenue comes from long-term contracts with government entities, providing a stable revenue stream.
• Technological Innovation: Continuous investment in research and development is crucial for maintaining a competitive edge and securing future contracts.
• Government Spending: Changes in government defense budgets and geopolitical factors significantly impact the demand for General Dynamics' products and services.
• Aftermarket Services: A substantial portion of revenue is derived from aftermarket services, including maintenance, repair, and upgrades of existing equipment.
• Global Presence: A global presence allows General Dynamics to pursue international contracts and diversify its revenue base.

General Dynamics Corporation's Financial Performance

Key aspects of General Dynamics' financial performance include:

• In the fiscal year 2024, General Dynamics reported a revenue of $42.3 billion, marking a 6.6% increase compared to 2023.
• The company’s operating earnings for 2024 were $4.7 billion, an increase of 7.3% from the previous year.
• General Dynamics' Aerospace segment saw revenue increase to $9.1 billion in 2024.
• Marine Systems experienced revenue growth, reaching $11.4 billion in 2024.
• The Technologies segment, which includes IT services and mission systems, reported revenues of $14.3 billion.
• The Combat Systems segment reported revenues of $7.6 billion.
• The company's backlog remains strong, providing visibility into future revenue. As of the end of 2024, the total backlog was $91.5 billion.

Further insights into the company's financial health can be found here: Breaking Down General Dynamics Corporation (GD) Financial Health: Key Insights for Investors

General Dynamics Corporation (GD) Market Position & Future Outlook

The company holds a strong position in the aerospace and defense industry, driven by its diverse portfolio and consistent contract wins. With a focus on innovation and strategic acquisitions, the company is poised for continued growth, although it faces challenges from market competition and evolving geopolitical landscapes. You might be interested in learning about Mission Statement, Vision, & Core Values of General Dynamics Corporation (GD).

Competitive Landscape

Opportunities & Challenges

Industry Position

The company maintains a strong foothold in the defense sector, characterized by:

• A leading position in the market for submarines and combat vehicles.
• A significant presence in the aerospace sector through its business aviation segment.
• A robust backlog of orders, providing a stable revenue stream for the coming years. As of the end of 2024, the company reported a total backlog of $91.5 billion.