The company's backlog stands at $90.6 billion, with strong order activity in Gulfstream aircraft and significant contract awards in defense segments. This provides a solid foundation for future revenue.

Marine Systems revenue growth is attributed to increased volume on the Columbia-class and Virginia-class submarine programs. The company secured $2.9 billion from the Navy for long-lead materials for Block V and Block VI Virginia-class submarines.

The Technologies segment's revenue increased due to strong demand for IT services, including the ramp-up of new programs. The company secured $50 million from the U.S. Air Force to modernize, integrate and operate the DoD's Mission Partner Environments.

While aircraft manufacturing revenue increased, the number of G700 deliveries was impacted by supplier quality escapes, late delivery of components and out of station work. This shows a potential bottleneck in the supply chain.

The Marine Systems segment's operating margin decreased due to an unfavorable profit adjustment on the Virginia-class Block IV contract as it approaches completion, impacted by supplier quality issues and late supply chain deliveries.

The company emphasizes efficient conversion of net earnings into cash and its deployment to maximize shareholder returns, using free cash flow and return on invested capital (ROIC) as key performance measures. The Board authorized management to repurchase up to 10 million additional shares.

The 10-K highlights that U.S. government contracts are not always fully funded at inception and any funding is subject to disruption or delay. The Congress has not yet passed a defense appropriations bill for the government's current fiscal year.

The company faces various cybersecurity threats, including threats to IT infrastructure and attempts to gain unauthorized access to proprietary or classified information. There is no assurance that safeguards will be sufficient to prevent cybersecurity breaches.

Operations outside the United States are subject to various risks that may be associated with doing business in foreign countries, including economic, legal or political instability, and procurement procedures may be less robust or mature.

The company acknowledges that it competes with numerous domestic and non-U.S. companies for products and services. Key competitive factors include technical excellence, reliability, safety, cost competitiveness, and innovation.

The Aerospace segment has several competitors for each of its Gulfstream products. Key competitive factors include aircraft safety, reliability and performance; comfort and in-flight productivity; service quality, global footprint and responsiveness; technological and new-product innovation; and price.

Our Marine Systems segment has one primary competitor with which it also partners on the Virginia-class submarine program, and to which it subcontracts on the Columbia-class submarine program.

In the Aerospace segment, supply chain challenges paced the company's ability to ramp up production at the rate it liked, causing out-of-sequence manufacturing that increased costs and decreased operational efficiency.

The Virginia-class program has been impacted by supplier quality issues and late supply chain deliveries causing cost growth and schedule delays.

In 2024, product operating costs increased at a higher rate than revenue due to supplier quality issues and late supply chain deliveries on the Virginia-class Block IV contract within our Marine Systems segment and additional costs associated with initial deliveries of G700 aircraft.

In our Aerospace segment, we expect our investment in the development of new aircraft products and technologies to support the segment's long-term growth.

We are expanding our platform capabilities through continued investment in robotic and autonomous vehicle technology. We have developed semi-autonomous robotic platforms that can be equipped with an array of modular mission payloads for use alongside dismounted soldiers.

Our Technologies segment provides a full spectrum of services, technologies and products to a wide range of military, intelligence, federal civilian and state customers.

On March 6, 2024, our board of directors (Board) declared an increased quarterly dividend of $1.42 per share, the 27th consecutive annual increase.

On December 4, 2024, the Board authorized management to repurchase up to 10 million additional shares of the company's outstanding stock.

Capital expenditures were $916 in 2024 and $904 in 2023. Capital expenditures include equipment and facility enhancements to support new and existing programs across our businesses.

The Aerospace segment places a priority on sustainability throughout its manufacturing and service operations, producing aircraft that maximize fuel efficiency while offering customers options to reduce or eliminate their carbon footprints.

Our commitment to ethical business practices is outlined in our Standards of Business Ethics and Conduct, which states our expectation that all employees conduct business in accordance with our Ethos, applicable laws and our policies.

Approximately 84% of our employees are based in the United States, of which roughly 69% are white, 31% are people of color, 19% are veterans of the U.S. armed forces and 8% have self-reported having a disability.

With approximately 70% of our revenue from the U.S. government, government spending levels particularly defense spending influence our financial performance.

International demand for military equipment and technologies presents opportunities for our non-U.S. operations and exports from our North American businesses.

Our Aerospace segment is subject to changing customer demand for business aircraft. The business jet market is driven by the demand for business-aviation products and services by corporate, individual and government customers in the United States and around the world.