“Overall, demand remains solid across Combat, particularly in our ordinance and international combat vehicle businesses.”

In context

“egment in turn. First, Combat Systems. Combat Systems had revenue of $2.2 billion for the quarter, similar to a year ago. Earnings of $325 million are up 8.3% and margins at 14.7% represents a 120 basis point increase over Q3 last year. Each of the businesses increased earnings with particularly strong operating leverage in munitions and customer service businesses. On a sequential basis, while revenue decreased 3%, earnings rose almost 4%. Year-to-date, revenue of $6.6 billion is up almost 12% and earnings of $920 million are up $124 million or almost 16%. Combat saw robust order activity over $3.3 billion awarded in Q3, resulting in a book-to-bill of 1.5:1 for the quarter. Orders came from across the portfolio with notable orders in munitions and near defense vehicles for the U.S. Army. Overall, demand remains solid across Combat, particularly in our ordinance and international combat vehicle businesses. In the U.S., we are increasing production of 155-millimeter ammunition projectiles as well as expanding our support to the U.S. Army across several other areas, including final loading and assembly of artillery. Our Combat Systems backlog at roughly $18 billion reflects the strong demand. All in all, a strong performance quarter for Combat. Turning to Marine Systems. Once again, our shipbuilding group is demonstrating strong revenue growth. Marine Systems revenue of $3.6 billion is up $597 million, 20% against the year ago quarter. Columbia-class construction and engineering volume as well as Virginia-class volume drove the growth. DDG-51 revenue also increased somewhat. Just to put this in some context, this 20% growth follows 15% growth in Q4 2023, 11% growth in Q1 of 2024, and 13% grow”