EPS was $2.70 (-1.8% Y/Y), above the consensus of $2.56.

Operating earnings fell 1.6% Y/Y to $962 million, and the margin contracted by 117 bps to 9.5%.

Revenue by segments: Aerospace $1.95 billion (+4.6% Y/Y), Marine Systems $3.06 billion (+15.4% Y/Y), Combat Systems $1.92 billion (+15.5% Y/Y) and Technologies $3.22 billion (+7% Y/Y).

General Dynamics generated an operating cash flow year-to-date of $2.19 billion compared to $2.63 billion a year ago. Free cash flow was $1.82 billion.

The total estimated contract value, the sum of all backlog components, was $129.3 billion (+2.3% Y/Y) at the end of the quarter.

Q2 consolidated book-to-bill ratio was 1.2-to-1. Company-wide backlog of $91.4 billion, up 4.3% Y/Y.

"Our businesses demonstrated solid momentum despite continued supply chain headwinds in several units, achieving the highest-ever revenue for a mid-year quarter, record-high backlog and very strong cash flow. We are well positioned to continue to perform for the remainder of the year," commented Phebe N. Novakovic, chairman and chief executive officer.

GD continues to see EPS of $12.60-$12.65 against the Street view of $12.65.

Price Action: GD shares are trading higher by 2.85% at $224.27 during the market session on Wednesday.