Military combat products also earned revenue.
General Dynamics’ profits rose more than 27% in the first quarter as its aerospace business plans to begin delivering new long-range executive jets later this summer.
Based in Reston, Virginia, aerospace and military contractors provide a wide range of products and services to the US Department of Defense and other US government agencies, as well as private sector and commercial customers around the world.
During a conference call with Wall Street Analysts on April 23, General Dynamics CEO Phebe Novakovic said that the company’s four business segments saw revenue and revenue increase compared to a year ago. She noted the company’s growth and strong performance in the defense and aerospace sector, where aircraft delivery has increased by 50%.
“The business has become a real gem. In short, the aerospace team had a good quarter,” Novakovic said of the company’s Gulfstream subsidiary and the Jet Airlines business.
During the quarter, Gulfstream delivered 36 business jets to customers around the world, including 13 of its new super-large cabin G700 aircraft, which can carry up to 19 passengers. A year ago, Gulfstream delivered its first G700 to its customers, offering its new flagship executive jets to rivals in Bombardier’s Global 7500 and Dassault Falcon’s new 10X entry.
Last week, Gulfstream announced that its new G800 has been certified by the Federal Aviation Administration (FAA) and the European Union Aviation Safety Agency. At a production facility produced in Savannah, Georgia, the G800 is billed as the world’s longest business jet, allowing it to exceed 8,200 nautical miles (9,400 miles) at a speed close to Mach 0.935.
Related Stories
Gulfstream’s fleet of executive business aircraft also includes the G400, G500, G600, and G650. The latter recently recorded the farthest and fastest flight in business aviation history, travelling from Singapore to Tucson, Arizona, about 9,200 miles in just 15 hours, completing production in February. Since then, the new executive jet entry has moved to the company’s completion center in Appleton, Wisconsin, with the first G650 reaching its first customer later this year.
During the conference call, Novakovic highlighted the general dynamics position as one of the country’s leading defense contractors, providing full technology, artificial intelligence, machine learning services and products to its military, intelligence and federal civilian customers.
Under the company’s combat and ocean subsidiaries, the major defense contractor dynamics branded products for the US military include the M1 Abram Stank, Virginia-class submarines, and striker anti-tank missiles and armored vehicles used by Ukraine in the ongoing war with Russia.
“Demand for combat system products is particularly strong in Europe, and remains strong, and particularly strong in Europe,” Novakovic said.
The CEO of General Dynamics said that in addition to the recent contract over $1 billion to supply the US Army with the battlefront combat vehicles currently used by Ukrainian soldiers against Russian infantry, the company is working with the Pentagon to accelerate the modernization of its Abrams M-1 tanks.
After previous upgrades in 2018, the new Army tank is considered the world’s most deadly battlefield tank. Army officials publicly say the latest versions will be updated with the latest modular systems, allowing for faster technical upgrades and providing fewer resources.
“We are rapidly increasing ammunition capacity and production with launch facilities in Texas and baggage, gatherings and pack facilities in Arkansas,” confirmed Novakovic. “Overall, the battle has had a solid quarter and is off to a good start to the year.”
In response to analysts’ questions about the impact of the Trump administration’s tariffs, trade policy, and the potential impact of DOGE and the Pentagon’s budget cuts, General Dynamics CEO said he preferred to keep comments until more information is available.
“If I were more specific, I would be wrong. I’m really sharing how I see it from our foxhole,” Novakovich said.
“The rumours are ramping up and I just want to see what (Trump) budget shows.”
Novakovic has taken the page from the Fortune 500 company growth and said General Dynamics will not revised or update its annual financial forecast. At the beginning of January, the company provided earnings per share guidance from $14.75 billion to $14.85 billion in the first quarter, with an estimated earnings per share of $13.7 billion.
During the New York Stock Exchange session on Wednesday, General Dynamics stock fell by $265.53, or 3.3%.
