General Dynamics beats profit estimates with strong aerospace and defense performance
From Yahoo Finance: 2025-04-23 07:10:00
General Dynamics reported a 27% increase in first-quarter profit, driven by a recovery in its aerospace segment and strong defense business. The aerospace unit saw a 45% revenue increase, with earnings up 69% due to increased deliveries of Gulfstream business jets. However, business jet orders fell, impacting overall performance.
The company’s new Gulfstream G800 jet received certifications from FAA and EASA, boasting seating for 15 passengers and a range of 8,200 nautical miles. Despite delays in jet engine supplies, General Dynamics reported quarterly profit of $994 million, beating analyst estimates, with revenue of $12.2 billion surpassing expectations.
Defense contractors like General Dynamics continue to benefit from high demand for military equipment amid the ongoing Russia-Ukraine conflict. The combat systems segment saw a 3.5% revenue increase, while the marine systems segment, responsible for nuclear-powered submarines, experienced a 7.5% rise.
However, delays in building Navy submarines have been caused by labor shortages, design issues, and supply chain challenges exacerbated by the pandemic. A recent strike authorization by marine drafters citing “inferior compensation” adds to the challenges General Dynamics faces in meeting contract deadlines.
With uncertainties stemming from global supply chain disruptions due to trade wars, defense contractors are cautiously maintaining their 2025 financial forecasts. The impact of tariffs remains unclear, prompting companies like General Dynamics to monitor the situation closely before adjusting their projections. Shares fell 3.5% during market hours.
Read more: General Dynamics beats results estimates on sustained defense demand, aerospace recovery