General Dynamics aerospace revenues soar to $2.7bn
General Dynamics reported fourth quarter results wherein the company reported aerospace revenues of $2.7bn, up 12% year-on-year from $2.4bn.
Business jet deliveries made by the Gulfstream-manufacturer inched up to 39, of which 32 were large-cabin aircraft and seven were mid-cabin ones, from 38 in the previous year.
“We had a solid fourth quarter, capping off a year that saw growth in all four segments and continued strong cash flow,” said Phebe N. Novakovic, chairman and chief executive officer, General Dynamics.
“Our aerospace segment in particular saw solid execution and continued demand in the quarter and is well positioned for a surge in deliveries upon the Federal Aviation Authority (FAA) certification of the G700.”
On a full-year basis, General Dynamics aerospace segment revenues remained flat at $8.6bn in 2023 compared to $8.5bn in 2022 while operating earnings grew by 4.6% year-on-year to $1.2bn, respectively. This was despite a significant decline in 2023 Gulfstream aircraft deliveries at 111 (89 large-cabin and 22 mid-cabin aircraft) compared to 120 in 2022.
On the book to bill, the company’s aerospace division came in at 1.2x for the quarter and the year (though this was helped by the lack of G700 deliveries).
The company’s aerospace segment ended the year with a backlog of $20.4bn.
Overall, General Dynamics reported earnings per share of $3.64 for the fourth quarter (Q4), as the company’s top line jumped 7.5% year-on-year to $11.7bn. The company’s fourth quarter earnings were slightly below the consensus estimates of $3.68, partly due to delays in the certification of Gulfstream’s new G700 bizjet.
“We imagine that investors will look through the headline EPS ‘miss’ for 4Q, as some estimates that fed into consensus were clearly stale given the G700 slippage. Aside from this we view 4Q as a clean operating result, with particularly strong cashflow,” said Robert Stallard of Vertical Research Partners in his earnings commentary.
Headquartered in Reston, Virginia, General Dynamics is a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapons systems and munitions; and technology products and services.