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About General Dynamics Government Systems Corporation

General Dynamics is a prime military contractor to the Pentagon (the US government accounts for over 65% of sales). The company's Marine Systems unit builds surface combatants, auxiliary and combat-logistics ships, and nuclear submarines. The Aerospace division - composed of Gulfstream Aerospace and Jet Aviation - makes and refurbishes business jets primarily for civilian customers. The company's Information Technology segment provides IT services and IT infrastructure to the US government. The Combat Services unit makes battle tanks, wheeled combat/tactical vehicles, munitions, weapons systems, and armament. Mission Systems handles C4ISR (command, control, communications, computers, intelligence, surveillance, and reconnaissance) solutions for naval, air, ground, space, and cyber systems. About 85% of the company's total sales comes from North America.


General Dynamics has five operating segments: Aerospace, Marine Systems, Information Technology, Combat Systems, and Mission Systems.

On the civilian side of the business, the company's Aerospace segment (about a quarter of revenue) produces mid- and large-cabin business jet aircraft, for which the company provides maintenance, refurbishment, and outfitting.

General Dynamic's Marine Systems group (nearly 25% of revenue) is a major shipbuilder for the US Navy, and it provides MRO (maintenance/repair/overhaul) services. Through Electric Boat, Marine Systems manufactures the Virginia-class nuclear-powered submarine and Columbia-class ballistic-missile submarine, while Bath Iron Works builds the Arleigh Burke-class guided-missile destroyer (DDG-51). NASSCO builds auxiliary and support ships for the US Navy, as well as oil tankers and container ships for commercial customers.

The Information Technology segment (some 20% of revenue) offers IT services (consulting, design, integration, operations and maintenance, cloud, applications development, and cyber defense). Other operations include IT infrastructure modernization (system development and engineering, data center, and cloud strategy, migration and operations); and professional services (logistics, training, and life sciences).

The Combat Systems division (roughly 20% of revenue) is composed of European Land Systems; Land Systems; and Ordnance and Tactical Systems. It offers combat vehicles, weapons systems and munitions for the U.S. government and its non-U.S. partners.

Mission Systems division (nearly 15% of revenue) is a provider of C4ISR (command, control, communications, computers, intelligence, surveillance, and reconnaissance) products and systems. Its core offerings are space, intelligence and cyber systems; ground systems and products; and naval, air and electronic systems.

Overall, the company generates almost 60% of total sales from products and more than 40% from services.

Geographic Reach

Headquartered in Reston, Virginia, General Dynamics operates around the world, serving government and commercial customers on five continents spanning more than 45 countries. The North America represents its largest market, generating around 85% of sales.

Sales and Marketing

General Dynamics' main customer is the US Department of Defense. About 65% of its revenues stem from the US government, and some 15% come from US commercial customers. The company offers services through different types of contracts. Its fixed-price contracts generate around 70% of the total revenue followed by the cost-reimbursement contract for about 25%.

Financial Performance

General Dynamics' revenues – apart from a slight dip in 2016 – have seen steady growth over the last five years, rising 24% between 2015 and 2019. As the U.S. government is its biggest customer, the company's financial performance is heavily reliant on it. The signing of the Bipartisan Budget Act of 2019 raised discretionary spending limits, and thus represented an increase of approximately 3% over the total FY 2019 spending level.

Revenue increased 9% to $39.4 billion in 2019 with growth in all of its segments. The increase was driven by deliveries of the new G500 and G600 aircraft in General Dynamics' Aerospace segment and new contracts from the U.S. government for military vehicles in the Combat Systems segment and submarines in the Marine Systems segment.

General Dynamics' net income rose 4% to $3.5 billion in 2019, mainly due to a decrease in effective tax rate from increased R&D tax credits and favorable 2019 regulatory developments associated with implementing the Tax Cuts and Jobs Act.

The company's cash and cash equivalents stood at $902 million at the end of 2019 compared with $963 million in the prior year. Cash from operations contributed $2.9 billion, while investing activities used $994 million, mainly for capital expenditures. Financing activities used another $1.9 billion, mostly for dividends and commercial paper repayments.


General Dynamics employs a unique business model that keeps it focused on its priorities which are exceeding customer expectations, executing on backlog, managing costs, implementing continuous improvement, and maximizing earnings, cash, and return on invested capital.

The company's continued investment in research and development leads to new aircraft that consistently broaden customer offerings while raising the bar for safety and performance. As part of its sustainability strategy, Gulfstream, in 2019, made its first customer sales of sustainable aviation fuel. In 2019, the all-new G600 was introduced to customers, joining the G500 which was launched in 2018.

Additionally, General Dynamics acquired Deep Learning Analytics in 2019 with extensive expertise in AI that specializes in deploying deep learning algorithms on small, power-efficient appliances and mobile devices. The new investment brings a wealth of artificial intelligence and machine learning knowledge, experience and capabilities to its customers across all domains.

The company is also the lead contractor for the US Navy's next-generation ballistic missile submarine, the Columbia-class. The Navy considers the Columbia-class sub a top priority, offering strategic nuclear deterrent capabilities for decades. The Columbia-class submarines are scheduled to replace the Ohio-class fleet when it reaches the end of its service life in 2027.

Mergers and Acquisitions

In 2019, Jet Aviation, a wholly owned subsidiary of General Dynamics acquired full ownership of the San Juan fixed-base operator (FBO) at Luis Muñoz Marin International Airport in Puerto Rico, a provider of premium business aviation services at one of the most convenient U.S. points of entry for international flights. A new, larger hangar will open in the first quarter of 2019 to replace the one destroyed by Hurricane Maria in 2017. The hangar – 20,000 square feet of hangar space and 2,500 square feet of office space – will offer customers parking facilities, refueling, third party aircraft maintenance, meeting space, an executive passenger lounge, flight-planning workstations and a pilots' suit.

General Dynamics Government Systems Corporation

2941 Fairview Park Dr
Falls Church, VA 22042-4522
Phone: 1 (703) 876-3000

Firm Stats

Employer Type: Privately Owned
PURCHASING: Oneill Caitlin
Controller: Mcinerney Kelly
NULL: Phil Skuta
Employees (This Location): 1,200
Employees (All Locations): 25,000

Major Office Locations

Falls Church, VA