General Dynamics ( GD ) reported an 18% rise in second-quarter revenue on Wednesday, helped by higher demand for its ammunitions and nuclear-powered submarines.

Despite cost pressures owing to a reduced defense budget, U.S. defense firms continue to see strong demand for military equipment amid ongoing geopolitical conflicts.

"In the Aerospace segment, we are continuing to ramp up the pace of our G700 deliveries and our defense businesses continued to grow, reflecting increased demand in response to the threat environment," CEO Phebe Novakovic said.

The Reston, Virginia-based company reported a quarterly revenue of $11.98 billion, up from $10.15 billion a year ago.

It reported net income of $905 million, or $3.26 per share, for the quarter ended June 30, compared with $744 million, or $2.70 per share a year earlier.