Gulfstream revenues up 8.4%

The company manufactures parts of G280 jet in Israel which has been affected due to the ongoing tensions in the Middle East.

Aerospace sales at General Dynamics, the owner of Gulfstream and Jet Aviation, rose 8.4% to $3.3bn in the first quarter. 

“Aerospace did very well in the quarter. It had revenue of $3.3bn,” said Danny Deep, president of General Dynamics in the company’s earnings call. “Revenue was $253m more than last year’s first quarter, an 8.4% increase. To give you a little perspective here, the increase was driven by two more aircraft deliveries and higher services revenue at both Gulfstream and Jet Aviation.”

Gulfstream delivered 38 jets during the first quarter: 31 large-cabin and seven mid-cabin aircraft.  “The 38 deliveries in the quarter are exactly as planned,” said Deep.

Gulfstream’s operating earnings were up $61m to $493m. This was helped by a 70bp rise in operating margin.

“The operating margin of 10.5% was also better than our forecast, with notable strength in Aerospace, which came in at 15%,” said Robert Stallard of Vertical Research Partners.

“I think we still see some areas in the supply chain where we need to get the cadence up. And those problems tend to be where we have complex components or complex systems where there are just single sources of supply. But broadly speaking, we are seeing improvements,” said Deep.

Gulfstream had a 1.2x book-to-bill ratio. It ended the quarter with a $22.26bn backlog up from $21.82bn at the end of 2025.  Deep says that they expect similar deliveries in the second and third quarters with a strong fourth quarter. 

Gulfstream’s large cabin aircraft comprise: G800, G700, G600, G500 and G400 and G300 and G280 mid-cabin. First deliveries of the G300 are expected in 2027.

 G280 and G300 aircraft are built in Israel by IAI and then completed in the US. Production of G280s may be affected by the Iran conflict. 

“All of the airplanes that we delivered in Q1, we had received a fair bit ago, and we completed them over the quarter and delivered. So – which weren’t impacted this quarter,” said Deep. “I think we could see a small impact the longer this goes on. They’re still producing those airplanes ready for us to complete. But we could see some minor impact.”