General Dynamics (GD) reported third-quarter revenue of $14.6 billion, up 12.9% from a year earlier, as year-over-year growth accelerated after 8.1% in the second quarter and 10.3% in the first.

The Reston, Virginia aerospace and defense company posted operating earnings of $1.53 billion and diluted earnings of $4.49 a share. Operating earnings rose 14.7% from the year-ago quarter. Operating margin was 10.5%.

Chairman and Chief Executive Officer Phebe Novakovic said the business had exceptional third-quarter results, with revenue growth across all four segments, robust bookings and solid operational performance.

Marine Systems was the fastest-growing segment. Revenue there rose 21.1% to $4.96 billion, with operating earnings up 34.4% to $391 million and margin at 7.9%. Aerospace revenue increased 9.3% to $3.54 billion, with operating earnings up 19.3% to $513 million and margin at 14.5%. Technologies revenue rose 10.8% to $3.68 billion, with operating earnings up 5.8% to $346 million and margin at 9.4%. Combat Systems revenue increased 6.0% to $2.39 billion, but operating earnings fell 1.5% to $330 million and margin compressed to 13.8% from 14.9%.

Orders were the quarter’s defining turn. Company-wide book-to-bill jumped to 6.8-to-1 from 1.4-to-1 in the second quarter, on $98.8 billion of orders, including $93.8 billion in the defense segments and $5 billion in Aerospace. Defense-segment book-to-bill was 8.5-to-1. Aerospace book-to-bill was 1.4-to-1. The company said defense orders were driven by large Marine Systems awards for Virginia- and Columbia-class submarines.

Backlog rose to $220.3 billion at the end of the third quarter from $136.5 billion at the end of the second quarter. Marine Systems backlog was $146.9 billion. Estimated potential contract value, management’s estimate of additional value in unfunded IDIQ contracts and unexercised options, was $50.4 billion, for a total estimated contract value of $270.7 billion.

Gulfstream aircraft deliveries were 40 units, including 35 large-cabin and 5 mid-cabin aircraft, versus 39 units a year earlier. Aerospace orders were $4.97 billion.

Cash provided by operating activities was $1.7 billion, or 139% of net earnings. Free cash flow was $1.23 billion, down from $1.90 billion in the year-ago third quarter, as capital expenditures rose to $481 million from $212 million. The company paid $429 million in dividends and reduced total debt by $500 million, ending the quarter with $7.0 billion of debt, $4.4 billion of cash and equivalents, and net debt of $2.63 billion.

Novakovic said that with consistent growth in backlog and significant investment in the businesses over the last decade, the company is poised to drive continued performance in the years to come.