General Dynamics business jet revenue jumps 50%
2024.07.24 09:21
By Aatreyee Dasgupta and Mike Stone
WASHINGTON (Reuters) -General Dynamics reported an 18% rise in second-quarter revenue on Wednesday, helped by higher demand for its ammunitions and nuclear-powered submarines and a 50% year-on-year jump in revenue from business jets.
“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 in a statement.
General Dynamics (NYSE:) delivered 37 business jets in the quarter, compared with 21 in the same period a year ago representing a more than 50% increase.
The Federal Aviation Administration certified the G700 business jet just days before the quarter began, unlocking a surge of deliveries. In the first quarter, the company delivered 24 business jets.
Despite cost pressures owing to a budget constrained U.S. defense budget, defense firms continue to see strong demand for military equipment amid ongoing geopolitical conflicts.
Profits at General Dynamics’ combat systems unit, which makes vehicles and tanks, were $313 million in the quarter, up 25% versus the same period a year ago.
General Dynamics reported quarterly earnings per share of $3.26, just below analyst estimates of $3.27, but revenue of $11.9 billion was well above analyst estimates of $11.4 billion according to LSEG data.
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 for the quarter ended June 30, compared with $744 million a year earlier.
The $95 billion Ukraine-Israel aid bills passed by Congress earlier this year were expected to boost the order backlog for General Dynamics, which makes some of the artillery which is in heavy use in Ukraine.
Other major companies that receive government contracts, such as Lockheed Martin (NYSE:), RTX Corp and Northrop Grumman (NYSE:) should also eventually expect a lift from the funds.
