General Dynamics aerospace sees record-high revenue growth in Q3

General Dynamics, manufacturer of Gulfstream jets, booked record-high revenue growth of 30.3% year-over-year growth to $3.2bn in the third quarter of 2025 for it aerospace segment as deliveries soared to 39 units – 11 more than 28 in the same quarter of last year.

“Each of our four segments grew earnings and backlog in the quarter, reflecting solid execution coupled with growing demand,” said Phebe Novakovic, chairman and chief executive officer. Novakovic singled out the segment’s profitability specially.

“The aerospace segment in particular performed impressively, growing revenue 30.3% and expanding margins by 100 basis points from the same period a year ago, with order activity for business jets remaining very strong.”

In tandem with the stellar topline growth, the segment’s operating profit hit $430m – a whopping 41%YoY increase from last year’s third-quarter tally. Operating margin was up 100 basis points to 13.3% of the revenue.

Deliveries also surged during the quarter as the company reported deliveries of 39 units. Of this, large-cabin accounted for 33 while the remaining six were mid-cabin aircraft. On a cumulative basis, in the first nine months of 2025, the company has so far delivered 113 units compared to 89 in the same period of last year – an increase of 27%YoY.

These deliveries translated to a cumulative nine-month revenue of $9.3bn, up 24%YoY from $7.5bn in the last year. While revenues were up by one-fourth, the aerospace segment’s operating earnings jumped 44% during the period to $1.3bn. Similarly, operating margin was also up 190bps to 13.6% of the revenue.

With business aviation seeing a resurge in demand, the company’s total backlog (funded as well as unfunded) hit $20.6bn mark. Of this, however, the company said the estimated potential contract value in the aerospace segment is only $1.1bn.

The company’s book-to-bill at the end of third quarter stayed hot at 1.3x – orders of $4bn against revenue of $3.2bn as demand for Gulfstream jet continues to outpace production

In terms of absolute basis, orders at the end of third quarter were up 71%YoY from $2.4bn last year.