Gulfstream revenues skyrocket 50% in 2Q

General Dynamics reported a significant boost in its aerospace segment (Gulfstream) during the second quarter of 2024. Revenue surged 50.5% year-over-year to $2.9bn, up from $1.9bn in the same period last year.

“This was a strong quarter overall, as reflected by solid growth in all key measures from a year ago. Our businesses continue to focus on disciplined execution of their programs, cost and schedule,” said Phebe N. Novakovic, chairman and chief executive officer.

“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.”

Despite sharp revenue growth, the aerospace segment’s operating margins slipped to 10.9% of the revenue from 12.1% in the preceding quarter of last year.

In absolute terms, the second quarter operating margin of the segment rose 35.2% YoY to $319m from $236m last year.

While the company secured $2.7bn in new orders during the quarter, its overall order backlog slightly dipped from $20.5bn in the first quarter of 2024 to $20bn during the period under review, resulting in a book-to-bill ratio of 0.9x.

Aircraft deliveries also increased, with 31 large-cabin and six mid-cabin aircraft delivered, compared to 18 and six respectively in the previous year.

On a cumulative basis, the company’s aerospace segment revenues during the six months ended June 30 grew by 30.7% YoY to $5bn from $3.8bn in the same period last year.

This translated in operating margin growth of 23.4%YoY in absolute terms to $574m from $465m last year while operating margin as a percentage of revenue declined 70 basis points to 11.4% of the revenue.

General Dynamics manufactures business jets through its subsidiary Gulfstream Aerospace.