MAAT INDEX

CLAIM #25761 · GD (GD) · 2026Q1 earnings call · Apr 29, 2026 · due Dec 31, 2026

Yes. I mean it's certainly -- as we continue to invest throughout the year, it certainly has an impact on our cash flow, and that's what we're evaluating as it impacts the quarter, but we're certainly driving to get our working capital off the balance sheet to offset the increase in CapEx.

Kimberly Kuryea · CFO

PENDING
graded after results covering Dec 31, 2026 are reported

How to check this claim

Look at: Working capital change (use of cash from working capital) and free cash flow relative to CapEx increase, fiscal year

It came true if: Working capital becomes a net source of cash (positive contribution) or free cash flow does not decline year-over-year despite higher CapEx

Where: Company cash flow statement (10-K / Q4 earnings release)

In context

their attention, it bodes well for them in the future. And I'm not sure that margins were at 12.6% that you mentioned, but we'll come back to you, I think they're even a little higher than that. So -- and we're continuing to be bullish about where we think they can be. David Strauss: I was -- I think you said the growth at Mission Systems [indiscernible] above 12%, yes, that's right. Danny Deep: Yes. Yes. The growth -- sorry, the growth was at 12%. That's right. And -- yes, and we feel good about the growth in that part of the portfolio going forward based on all the things I just mentioned. David Strauss: Okay. Great. And Kim. In terms of the CapEx step-up this year, your updated thoughts on your ability to kind of recover that through working capital over the near term? Kimberly Kuryea: Yes. I mean it's certainly -- as we continue to invest throughout the year, it certainly has an impact on our cash flow, and that's what we're evaluating as it impacts the quarter, but we're certainly driving to get our working capital off the balance sheet to offset the increase in CapEx. Operator: We'll take our next question from Myles Walton at Wolfe Research. Myles Walton: Danny, you mentioned 1Q representing the highest output for [indiscernible] at Aerospace. And so where does capacity currently fit for large cabin production at this point on an annual basis. I noticed in the fourth quarter of last year, you had a pretty material step-up in CapEx. And so I imagine you're expanding capacity. So maybe if you can just update us on the trajectory to get to whatever capacity you're targeting? Danny Deep: Yes. So from a demand and backlog standpoint, certainly, we have enough of that to increase production on the long range and the ultra long-range family of airplanes. I think the issue here really is the supply chain and their ability to ramp up as quickly. And so in term

Verify independently

SEC filings for GD · Claim quote is verbatim from the 2026Q1 earnings call.