General Dynamics exceeded analyst estimates in Q2 with strong revenue and profit, driven by robust orders in its marine segment from submarine programs. The company’s aerospace segment saw increased deliveries and certification of the G800 aircraft, with strong demand reflected in new bookings. Revenue for the quarter beat expectations at $1.3 billion.

The defense company’s marine systems segment, focusing on nuclear-powered submarine production, generated 22.2% more revenue. The Pentagon modified a submarine production contract, raising its value by $1.85 billion. General Dynamics entered into a new contract with union members to avert labor shortages affecting Navy shipbuilding schedules.

Despite revenue growth in the technologies segment, the combat systems part experienced a slight decline due to contract cancellations and supply chain issues. General Dynamics forecasts annual revenue for the combat segment at $9.2 billion. The company expects a profit range of $15.05 to $15.15 per share for the year.

General Dynamics anticipates total revenue for fiscal year 2025 at $51.2 billion with a 10.3% operating margin. The company’s aerospace segment saw a 4.1% revenue increase, with aircraft deliveries rising. New bookings were strong, reflecting demand across the Gulfstream product line. Annual revenue for the aerospace segment is estimated at $12.9 billion, with an operating margin of 13.5%.

Read more at Yahoo Finance: General Dynamics profit, revenue beat estimates on strong marine business, jet deliveries