Thank you, Nicole. Good morning, everyone, and thanks for being with us. Earlier this morning, we reported fourth quarter earnings of $4.17 per diluted share on revenue of $14.307 billion, operating earnings of $1.152 billion, and net earnings of $1.143 billion. To briefly summarize, on a quarter-over-quarter basis, revenue is up 7.8%, and operating earnings are up 2%. Net earnings and diluted earnings per share are relatively flat to the year-ago quarter, which you may recall was a terrific quarter.

It included some significant one-time items, which drove unusually high margins, but more about that later. The sequential comparisons are quite attractive. Here, we beat the prior quarter's revenue by 11.4%, operating earnings by 9.1%, net earnings by 7.9%, and fully diluted EPS by $0.29. Full-year numbers are absolutely terrific. Revenue is up 10.1%, operating earnings are up 11.7%, net earnings are up 11.3%, and fully diluted EPS is up 13.4%.

Both revenue and operating earnings were up for each of the segments led by Marine Systems and Aerospace, with revenue growth of 16.6% and 16.5%, respectively. They also led the parade in operating earnings with Marine Systems up 25.9% and Aerospace up 19.3% for the year. All of this follows terrific revenue and earnings growth in 2024 over 2023. It would appear that we beat analysts' consensus for both the year and the quarter.

So let's move on to the business units. First, Aerospace. In Aerospace for the year, we experienced continuing growth of both revenue and earnings. Continuing strong demand for Gulfstream aircraft, overall strength in Gulfstream service business, and continued growth and performance improvement at Jet Aviation. In the quarter, Aerospace had revenue of $3.788 billion and earnings of $481 million. This represents a 1.2% increase in revenue, but a $104 million decrease in operating earnings on a quarter-over-quarter basis.

While the earning numbers are very good on a standalone, they do not compare favorably to a standout fourth quarter in the prior year aided by a number of discrete positive items that were significant increments to earnings. However, the sequential numbers are very positive with a 17.1% increase in revenue, coupled with an 11.9% increase in operating earnings. Importantly, for the year, Aerospace revenue of $13.1 billion is 16.5% greater than 2024.

This is on top of a 30.5% growth in 2024 over 2023. Revenue growth was driven in large part by the delivery of 158 new aircraft, which is 22 more than the year ago. Earnings of $1.75 billion are up 19.3% over 2024. So let's talk a little about demand. It was a strong quarter bordering on exceptional. Aerospace had a book-to-bill of 1.3 times in the quarter, and Gulfstream alone had an aircraft book-to-bill of 1.4 times.

Even as deliveries increased significantly in the quarter, orders exceeded our internal plan. The delivery of the G700 and G800 and their performance in customer hands is driving increased demand for them, which we experienced in the quarter. We continue to see improved interest across all models in all sales jurisdictions. Interestingly, the overall number of prospects in all areas continues to increase. Let me turn the discussion over to Danny for his perspective on the quarter.

So let's move on to the defense businesses. First, Combat Systems. Combat Systems had revenue of $2.5 billion for the quarter, 5.8% more than the year-ago quarter. Earnings of $381 million are also up 7% on a 10 basis point operating margin improvement. Operating margin of 15% is very good. The sequential growth of revenue and earnings at 12.6% and 13.7% is even stronger, with particular strength at OTS. For the full year, revenue of $9.2 billion is up 2.8% and earnings of $1.33 billion are up 4.3%.

As a result of a 20 basis point increase in operating margins, this compared to a year ago. All in all, a very nice profile. But the real story is in the order book. Combat saw robust order intake for the fourth quarter resulting in a book-to-bill of 4.3 to one. Orders came from across the portfolio with notable awards in munitions but exceptional intake in wheel and tracked vehicle programs at European Land. The book-to-bill for the year is 2.1 times.

This all rolls up to a total backlog of $27.2 billion and total estimated contract value of almost $42 billion. This positions Combat Systems very well for the future. In short, this group had a very solid year operationally with expanded margins, explosive order activity, and a strong order pipeline as we go forward. But before I turn to Marine Systems, I'd like to ask Danny to provide some additional color.

So turning to Marine. Once again, our shipbuilding group had exceptional revenue growth. Marine Systems revenue of $4.8 billion is up 21.7% against the year-ago quarter. All the shipyards were up, but the submarine programs and Electric Boat were the real drivers of this growth. I am very pleased to report that operating earnings of $345 million are up 72.5% on a 210 basis point improvement in operating margin. To be fair, the fourth quarter of 2024 was the group's poorest operating earnings in that year.

Nevertheless, 7.2% last quarter represents a meaningful improvement and real progress in submarine construction. Sequentially, the numbers are much the same. Revenue increased 17.6% and operating earnings 18.6%. For the full year, Marine revenue of $16.7 billion is up 16.6% and earnings of $1.18 billion are up 25.9%. So the story of revenue growth continues with some improvement in operating margin and measurable improvement in productivity.

Once again, the operating metrics tell us that we have, in fact, increased our productivity at all shipyards. Danny, feel free to interject your thoughts on Marine from an operating perspective.

And lastly, Technologies. It was a solid but no growth quarter with revenue of $3.24 billion, about the same as a year-ago quarter. Operating earnings in the quarter of $290 million are down $29 million on an 80 basis point decrease in operating margin. The full-year comparisons are somewhat better. Revenue at $13.5 billion is up 2.6%. Earnings of $1.28 billion are up 1.3% on a very similar operating margin.

Thank you, Kim. So let me provide our operating forecast for 2026 with some color around our outlook for each business group. And then the company-wide roll-up. In 2026, we expect Aerospace revenue to be about $13.6 billion, up around $500 million over 2025. Operating margin is expected to be increased to around 14%. This should result in operating earnings of around $1.9 billion. Gulfstream deliveries will be 160 with a little upside.

This is fairly close to 2025. In Combat Systems, we expect revenue in a range of $9.6 to $9.7 billion coupled with an operating margin of 14.1%. Which should lead to improved earnings around $1.36 billion at the midpoint of the revenue range. As I noted earlier, the Marine group has been on a remarkable growth story. It will continue in 2026. Our outlook for this year anticipates revenue in a range of $17.3 billion and $17.7 billion with a 30 basis point improvement at the operating margin line.

This should result in operating earnings around $1.3 billion. In Technologies, 2026 revenue is expected to be up to $13.8 billion. Operating margins are expected to decrease around 30 basis points to 9.2%. We continue to see long-term low single-digit growth from the group and continued industry-leading margins. The EBITDA margin is quite impressive. This should leave operating earnings of about $1.3 billion. So for 2026 companywide, we expect to see revenue in the range of $54.3 billion to $54.8 billion.

We anticipate operating margins of 10.4%, up 20 basis points from 2025 actuals. This should leave us with operating earnings around $5.7 billion at the midpoint of the anticipated revenue range. All of this rolls up to an EPS forecast between $16.1 and $16.2. None of this contemplates or includes any capital deployment. On a quarter basis, if one were to assume an average of $4 per quarter, the first quarter would be off $0.40.

Second, off $0.30. The third, off $0.10. And the fourth up $0.80 on a typical fourth-quarter increased volume. To wrap up, as we go into 2026, we feel very good about our business and the prospects for the year. We will do our level best to execute and beat the forecast we have given you. As always, we will be laser-focused on operations. Nicole, back to you.

Good morning, Seth.

And 600.

Because you're breaking up a bit. Are you about margin?

Yeah. That's better. Thank you.

So to be quite honest, we don't know. We know that both of those contracts are out there. The demand is there, and it's simply up to the government when they come to us. So don't know very much, but when we do, we'll tell you.

We'll move next to Doug Harned at Bernstein.

You know, the revenues are great. You know, clearly, it appears your throughput's going way up. You know, the Navy has been pushing so long to get throughput up, get back to the two Virginia class per year rate. And how would you describe Marine now in terms of kind of closing that gap on where the Navy ultimately wants to be here given that you've got so much money in the budget right now?

So I'd say we are continuing to approve efficiency retention at Electric Boat. Our throughput, as you know, is up. And the proficiency is really key as is retention. The supply chain remains the gating item, and we have seen significant improvement in some areas, but we still have some suppliers and parts of the supply chain that are at risk. The government has been heavily investing in the supply chain, which is why we've seen some improvement.

But we need to focus and do more particularly with respect to sole source suppliers where they are bottlenecks. So as the supply chain begins to improve, and increase their productivity and by the way, the quality still remains high. It's not an issue. It's simply really about the constraints that they have in capacity and getting their throughput up. But once they do, that will improve that will be the next big step in improving our productivity throughput and the ability to further accelerate deliveries to the customer.

So we'll see some increase in revenue growth this year and when accelerating into '27 when we begin to move into production of some of these programs in Europe. This year, we'll be largely planning and engineering R&D work and then as we move into production. So we have a pretty smooth path, I believe, to transition from our engineering work into production, and now we've got the resources, property, plant, and equipment personnel to execute.

We'll go next to Gautam Khanna at TD Cowen.

We'll take our next question from Scott Deuschle at Deutsche Bank.

So well, let me take that on. We have provided you with the deliveries that we are quite comfortable at the moment that we can execute. Final test, delivery tend to be the long poles in the tent. But we are working to expand our completion capacity through increased efficiency and where necessary additional tooling and fixtures. But let's just put this in some perspective. '24, we had a 30.5% increase in revenues, and from '25, we had a 16.5%.

That's in the hard-to-do category. So what we're doing right now is working to absorb that growth while increasing margins. So we believe this is a prudent plan. It's focused on meeting our obligations to our customers. And expanding our productivity.

We'll move next to Sheila Kahyaoglu at Jefferies.

I think a number of factors have driven the increased demand. Certainly, our new products have. The 800 led the demand, followed by the 700 and the 600. I suspect bonus depreciation was a factor as is the strength of various economies. I would also tell you that the pipeline is active. And growing. And we have good activity. So we like what we see on the demand side.

So the majority of or half at least of the CapEx for this coming year is at Electric Boat. We have been investing in Combat Systems across the portfolio, and we'll continue to do so. On the munitions side, we have and have executed that capacity up in Northeast Pennsylvania. To 36 rounds a month for the last twelve months. We've increased the load pack and established a load pack assembly facility, and with the capacity of 550,000 rounds a month. And we've increased our propellant capacity. So all in all, we see some instances of need for additional investment, and we'll make that accordingly.

We'll take our next question from Matt Akers at BNP.

So our capital deployment strategy for the last number of years has been to continue to invest in our growing business. As resulted in increased backlog. So we think we believe and plan on additional investments in our portfolio. To ensure that we're able to efficiently execute that back and provide for the demands and needs of our customer. We have for let's on the dividend, you know, we've paid a dividend for over twenty-five years.

And every year in March the board decides the extent of any increase but we're committed to the dividend and we never comment on share repurchase. I know that it's not particularly popular right now. So our habit and penchant for not commenting on share repurchases, I believe, appropriate. But I think it's our strategy remains heavily invested in the business. Because it's justified given the demand and the backlog.

Thanks. We'll continue to invest, year over year. In our businesses because we have long-term growth there, and it's embedded in our backlog. We believe that that's appropriate. So the investments year over year in CapEx may vary a bit. But you should expect that strategy going forward.

We'll move next to Myles Walton at Wolfe Research.

We believe there's margin improvement, headroom at Gulfstream, and we'll continue to pursue that. You know, it's not about necessarily pursuing growth that's in our backlog, but it's about execution, execution. That's throughout the whole company. It's really a strategy Gulfstream and Jet Aviation are no different. So we all continue to push margin, and we see high probability of improved margins over time.

Well, I think as we execute this backlog, we'll continue to push margins. We've got lots of puts and takes in this business as you all know and how all of the costs and the pricing opportunities play out over the next couple of years will drive it. But you should expect significant and consistent margin improvement over time. Throughout our plan period.

Wouldn't say there's any headwind on the Ajax program. We have a pause in the fielding, but we are highly confident in this vehicle. It has been tested for tens of thousands of miles. And we have great confidence in it.

We'll take our next question from Robert Stallard at Vertical Research.

Morning.

We have not. But let me remind you the biggest source of business that we have in Europe are EU European based and almost fully sourced. European businesses. They're indigenous businesses. That we've had for, in some cases, over twenty-five years. And they are manned, run, led, and sourced in Europe.

You mean a Gulfstream AI driven? From AI driven company? We haven't seen any of that. I'd say the demand is across the portfolio, very heavy in the Fortune 500, high net worth, and Fortune 500 companies high net worth individuals, but there's no one particular segment that jumps out or is anomalous.

We'll go next to Ron Epstein at Bank of America.

Morning, Ron.

Bath is participating in the design with other industry partners on that battleship that's just recently announced. I think it'll be quite some time in playing out. But it really is at its beginning design phases. So really too soon to project anything. In terms of time and

I don't believe we know the competition strategy right now.

Anna, I think you have quite eloquently defined and expressed our strategy. Our new airplane guard, our driving demand. We continue to come down our learning curve. The supply chain is improving as a way to go, but it's definitely better than it was. And all of that will drive additional margin improvement. Measured over time. But the investments we made years ago in these new products are coming to fruition, and the market is benefiting.

From this whole new family of clean sheet airplanes. Nobody else has anything like it. We worked hard. We earned it. This isn't something that just happened overnight. There's a lot of long thoughtful, targeted R&D and capital investments.

Sure.

Well, our strategy over the last several years is aligned with the administration's intent commitment to an intent to increase production, and we are an increased demand signals are very strong. So we have been investing in our business, and we'll continue to do so. I think that's the best way to think about it.

We'll take our next question from John Gadden at Citi.

We have a good business in munitions. We are a supplier to many of the missile companies. So we expect that the demand signals that the administration and outside The US have been issuing are manifesting in contract. We expect that to continue. Stores and inventories are low. And those inventories need to be replaced. So we are well positioned. We'll continue to work our margins as we always do. This is a business that tends to be in the 14-15% margin range.

We expect that to continue with some variability. It's all about their operating leverage. And their ability to come down their learning curves and control their cost.

Well, labor is not a problem. Are you asking whether we see material issues in the supply chain?

Let me answer this way. Say that some of the suppliers have ramped more successfully than others. We know the ones who still have some work to go. They're committed to making the investments to increase their capacity. So it's really about capacity throughput and the causes for that constrained environment in some of those suppliers is really just about the investment in capacity training a workforce, but quality remains good, which is critical. So, Audra, I think we have time for one more question.

Audra: Thank you. That question comes from Andre Madrid at BTIG.

Good morning.

Are you talking about Combat Systems primarily? Because there is none in Marine group. Gulfstream. So

We're not setting a particular benchmark, but I would say that the US Army is in a period of transition. But they moved to the most advanced technologically capable systems both in their unmanned systems, mobile protected firepower, communications, and in GPS denied environment. So we're seeing really a transition as the US Army modernizes its force. And we don't have any particular benchmark, with respect to some of the smaller areas for us, but we've made those investments to support that growth and we're quite confident that we are well positioned to support them going forward.

Alright. Well, thank you everyone for joining our call today. Please refer to the General Dynamics website for the fourth quarter earnings release and highlights presentation. If you have additional questions, I can be reached at (703) 876-3152. And this concludes today's conference call. Thank you for your participation. You may now disconnect.