General Dynamics (GD) Q2 2026: Half-Year FCF Triples to $3.6B
General Dynamics finally turned its revenue growth into cash. Operating cash flow for the first six months of 2026 reached $4.04 billion against $1.45 billion a year earlier, and free cash flow — operating cash minus the $437 million spent on plant and equipment — came to $3.60 billion versus $1.11 billion. Most of that swing was customer money arriving early rather than a jump in profitability: customer advances and deposits contributed $1.17 billion of cash inflow, against just $106 million in the prior-year period. The profit improvement is real but more modest — operating margin rose to 10.4% from 10.0% in the quarter, carried by Gulfstream and the submarine yards.
The figures below are from the Form 10-Q for the second quarter and six months ended July 5, 2026, filed July 29, 2026. All amounts are in millions of U.S. dollars unless noted.
1. Balance Sheet
1-1. Major asset lines
| Item | Dec 31, 2025 ($M) | Jul 5, 2026 ($M) | Change % |
|---|---|---|---|
| Cash and equivalents | 2,333 | 4,333 | +85.7% |
| Accounts receivable | 2,406 | 2,398 | -0.3% |
| Unbilled receivables | 8,380 | 9,255 | +10.4% |
| Inventories | 9,232 | 9,097 | -1.5% |
| Property, plant and equipment, net | 7,525 | 7,575 | +0.7% |
| Intangible assets, net | 1,375 | 1,281 | -6.8% |
| Goodwill | 21,009 | 20,927 | -0.4% |
| Total assets | 57,249 | 60,163 | +5.1% |
Almost the entire increase in total assets is cash. That cash did not come from borrowing — total debt fell from $8,013 million to $7,516 million over the same six months.
