General Dynamics (NYSE: GD) beat expectations for fourth-quarter results on Wednesday, as strength in the company’s defense businesses offset persistent supply issues holding back jet deliveries.
The Russia-Ukraine war and the escalation of conflicts in the Middle East fueled demand for weapons and military vehicles during the quarter.
The company’s three defense segments – combat systems, marine, and technologies – posted revenue increases of 1.3%, 16.2,% and 2.8%, respectively.
Revenue in the aerospace unit, which makes Gulfstream business jets, jumped 36.4%, even though the supply of jet engines has been held up by longer certification times, keeping General Dynamics from completing deliveries on schedule.
The company delivered 136 aircraft during the year, lower than its revised October estimate of 150 aircraft.
Its book-to-bill ratio was 0.9-to-1 for the quarter, suggesting the company was billing more than it was receiving in new orders.
Investors are concerned government defense budgets could face cuts under the newly formed Department of Government Efficiency (DOGE) headed by billionaire Elon Musk. Some analysts, however, have said Trump’s comments on acquiring Greenland and taking over the Panama Canal should support the case for increased spending.
General Dynamics (NYSE: GD) reported a 14% rise in quarterly profit to $4.15 per share, compared with analysts’ estimates of $4.05 per share, according to data compiled by LSEG.
Total quarterly revenue rose 14.3% to $13.34 billion, compared with estimates of $12.77 billion.