General Dynamics Corp. (NYSE: GD) has been included in a list of companies flagged by Piper Sandler for significant refinancing risks. The firm named GD as one of 10 S&P 1500 companies with more than $5 billion in debt, specifically noting that over half of that debt is due within five years.
According to the report cited by CNBC, General Dynamics carries a total debt load of $7 billion, with 54% of that maturing in the next five years. This translates to roughly $3.8 billion that could require repayment or refinancing while interest rates remain elevated.
Piper Sandler analyst Michael Kantrowitz stated that higher rates are the biggest risk to equity markets in 2026 and 2027. He noted that with credit spreads already narrow, corporations are unlikely to receive meaningful relief from credit markets.
General Dynamics is the only defense contractor among the 10 companies on Piper Sandler's list. The other companies include Live Nation Entertainment, Netflix, Ford, Wells Fargo, Morgan Stanley, Chevron, Constellation Energy, Keurig Dr Pepper, and Motorola Solutions.
Despite the debt concerns, the company's financial performance has been strong. In July, General Dynamics reported second-quarter earnings of $4.24 per share, beating estimates. The company raised its 2026 profit forecast to a range of $16.80 to $16.90 per share. Additionally, the company's debt has been shrinking, falling from $9.7 billion in 2023 to $8.4 billion at the end of 2025.
The company's stock closed at $334.16 on Monday, down 0.76% and about 16% below its 52-week high of $400. Kantrowitz acknowledged that strong earnings growth could offset some of the pressure from higher rates.
