Latest news with #Gulfstream
Yahoo
5 days ago
- Business
- Yahoo
GD Q2 Deep Dive: Backlog Growth and Defense Demand Drive Strong Quarter
Aerospace and defense company General Dynamics (NYSE:GD) reported Q2 CY2025 results exceeding the market's revenue expectations , with sales up 8.9% year on year to $13.04 billion. Its non-GAAP profit of $3.74 per share was 5.6% above analysts' consensus estimates. Is now the time to buy GD? Find out in our full research report (it's free). General Dynamics (GD) Q2 CY2025 Highlights: Revenue: $13.04 billion vs analyst estimates of $12.34 billion (8.9% year-on-year growth, 5.7% beat) Adjusted EPS: $3.74 vs analyst estimates of $3.54 (5.6% beat) Adjusted EBITDA: $1.53 billion vs analyst estimates of $1.46 billion (11.7% margin, 4.7% beat) Operating Margin: 10%, in line with the same quarter last year Backlog: $103.7 billion at quarter end, up 13.6% year on year Market Capitalization: $85.13 billion StockStory's Take General Dynamics delivered a second quarter that exceeded Wall Street's expectations, prompting a positive market response. Management attributed the company's performance to robust order activity, especially in the Marine Systems segment, and continued operational improvements within Aerospace. CEO Phebe Novakovic highlighted strong operating leverage, noting that all four business segments contributed to the company's year-over-year growth in revenue, earnings, and cash generation. Management credited record backlog levels and improved supply chain performance, particularly for Gulfstream jets, as key drivers behind the quarter's results. Looking ahead, General Dynamics' forward outlook revolves around sustained defense demand, new platform deliveries in Aerospace, and productivity enhancements across its businesses. Management pointed to the ramp-up of G800 jet deliveries, ongoing investments in submarine production, and improved throughput at shipyards as factors expected to shape the second half of the year. CEO Phebe Novakovic stated, 'We feel very good about the potential for the year,' while also noting that Aerospace operating margin will face some pressure from product mix, but is expected to recover as higher-margin models gain traction. Key Insights from Management's Remarks Management identified record defense backlog, strong Aerospace demand, and improvements in operational execution as the major themes shaping Q2 performance and near-term outlook. Marine Systems contract wins: The Marine segment secured major submarine construction contracts, boosting order backlog by 38%. Management emphasized that increased funding will support shipyard productivity, wage increases, and workforce training, helping to stabilize the submarine supply chain and improve delivery cadence. Aerospace delivery progress: Gulfstream delivered 38 aircraft, including more G700s as supply chain reliability improved. CEO Novakovic said all G700 retrofit aircraft are now delivered, with initial G800 deliveries set for Q3, highlighting customer interest from Fortune 500 companies. Aerospace saw a 1.3x book-to-bill ratio, reflecting continued demand across model lines and regions. Operational leverage and cost control: The company achieved double-digit growth in operating earnings and cash flow, supported by ongoing efforts to optimize manufacturing and working capital. Newly appointed EVP of Global Operations Danny Deep outlined a renewed focus on continuous improvement across the value chain to drive value creation. Technologies segment momentum: GDIT and Mission Systems both reported solid quarters, with GDIT navigating contract scope changes and slower-than-usual adjudications. Mission Systems is transitioning to higher-margin programs and investing in areas such as unmanned platforms and high-speed encryption, supporting future backlog growth. Combat Systems resilience: Despite flat revenue, Combat Systems achieved higher margins and noted growth in its European operations, benefiting from increased defense spending in the region. Management cited the cancellation of the Booker program as a U.S. headwind, but remains optimistic about new opportunities tied to next-generation platforms and munitions expansion. Drivers of Future Performance General Dynamics expects continued growth to be driven by defense demand, execution on new aerospace deliveries, and ongoing productivity initiatives, while acknowledging risks from supply chain variability and contract timing. Defense backlog and contract execution: Management highlighted the company's record defense backlog and contract value, noting that execution on major submarine and combat vehicle contracts will be a primary driver of revenue and operating margin. Progress in stabilizing the submarine supply chain is expected to gradually improve Marine segment profitability, though some near-term variability may persist. Aerospace product mix and ramp-up: The cadence of new jet deliveries, particularly the G800, will influence Aerospace segment margins. Management expects initial G800 deliveries to carry lower margins, with improvement as production matures and higher-margin models increase in mix. Any supply chain setbacks or delays could impact the segment's path to margin recovery. Adjudication pace and margin pressures: The Technologies segment's outlook depends on the pace of government contract adjudications and demand for high-speed encryption and digital modernization services. Management cautioned that contract delays or changes in federal spending priorities may introduce short-term revenue and margin fluctuations. Catalysts in Upcoming Quarters In the coming quarters, StockStory analysts will be monitoring (1) progress on ramping up G800 and G700 jet deliveries and their impact on Aerospace margins, (2) throughput and productivity improvements in the Marine segment as new funding and workforce initiatives take hold, and (3) the pace of contract adjudications and backlog conversion in the Technologies and Combat Systems segments. The ability to maintain operating leverage while navigating supply chain and government spending uncertainties will be central to results. General Dynamics currently trades at $316.88, up from $297.34 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it's free). High Quality Stocks for All Market Conditions Donald Trump's April 2024 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities. The smart money is already positioning for the next leg up. Don't miss out on the recovery - check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
6 days ago
- Business
- Reuters
General Dynamics profit, revenue beat estimates on strong marine business, jet deliveries
July 23 (Reuters) - General Dynamics' (GD.N), opens new tab second-quarter profit and revenue topped analyst estimates on Wednesday, driven by robust orders in its marine segment from Columbia- and Virginia-class submarine programs, boosting shares 5% in early trading. The defense company's nuclear-powered submarine-making marine systems segment produced 22.2% more revenue. The unit is now expected to generate 2025 revenue of $15.6 billion with a 7% margin. During the quarter, the Pentagon modified a submarine production contract awarded to the company's marine segment, raising the value by $1.85 billion. The company entered into a new contract with union members at its submarine-making unit, averting a shortage of skilled labor that has contributed to delays in U.S. Navy shipbuilding schedules. The technologies segment, which makes products for a range of military, intelligence, federal civilian, and state customers, generated 5.5% more revenue year-on-year. Defense manufacturers benefited from strong demand for weapons and other military equipment during the quarter, owing to geopolitical uncertainty and ongoing conflicts in the Middle East. New bookings during the quarter were 2.4 times its billing for General Dynamics' defense segments, indicating a strong order book. However, revenue within the combat systems part of the defense business, which manufactures land combat vehicles, weapons systems, and munitions, edged down 0.2% after taking a hit from the cancellation of the M10 Booker contract by the Pentagon as well as production delays owing to supply chain woes. Annual revenue in the combat segment is forecast to be $9.2 billion with a 14.5% margin. The Reston, Virginia-based company's quarterly adjusted profit was $3.74 per share, compared with analysts' estimates of $3.53 per share, according to data compiled by LSEG. It expects profit for the year to range between $15.05 and $15.15 per share. General Dynamics' aerospace segment, which is recovering from supply chain problems and longer certification times, ramped up deliveries during the quarter ended June 29. During the period, the Gulfstream jet maker's new G800 plane, the world's longest-range business aircraft, earned certification from the Federal Aviation Administration and the European Union Aviation Safety Agency. The plane has a range of 8,200 nautical miles (15,186 kilometers) at the Mach 0.85 long-range cruise speed, the company has said. The segment's aircraft deliveries hit 38 in the second quarter, compared with 37 in the same period a year ago. In the first quarter, the company delivered 36 Gulfstream jets. The aerospace unit's new bookings during the quarter were 1.3 times its billing. "This is the strongest first half for orders since 2022 and reflected strong demand across the entire Gulfstream product line," Chief Financial Officer Kimberly Kuryea said on a call with analysts. Revenue in the aerospace segment rose 4.1% from a year ago. Its annual revenue is estimated at $12.9 billion, with an operating margin of 13.5%. General Dynamics' total quarterly revenue of $1.3 billion beat Wall Street analysts' estimate of $1.23 billion. Total revenue for fiscal year 2025 is projected at $51.2 billion, with a 10.3% operating margin.
Yahoo
6 days ago
- Business
- Yahoo
Why General Dynamics Stock Popped Today
Key Points General Dynamics beat sales and earnings estimates soundly this morning. General Dynamics is on a roll, racking up new orders, growing sales, and growing profits even faster. Problem is, the stock costs too much. 10 stocks we like better than General Dynamics › Shares of General Dynamics (NYSE: GD), maker of Abrams main battle tanks and Gulfstream business jets, reported powerful earnings this morning, sending its stock up 6.1% through 10:50 a.m. ET. Analysts forecast GD would earn $3.44 per share on $12.2 billion in Q2 sales. Instead, the defense giant reported a $3.74-per-share profit on sales of $13 billion. General Dynamics Q2 earnings Sales climbed 8.9% year over year, and operating profit margin expanded 30 basis points to 10%. With these improved margins, earnings managed to grow 14.7%. Long-time CEO Phebe Novakovic noted that "each of our four segments achieved growth in revenue and earnings," while cash flow was "strong" and the company's backlog remains "healthy." Indeed, I'd go farther than that. Better than just "healthy," backlog now looks fantastic, thanks to General Dynamics' scoring a book-to-bill ratio (that's new orders taken in relative to older orders fulfilled and converted to revenue) of 2.2 for the quarter. Backlog now stands at $103.7 billion, enough to keep GD humming for the next two years straight. Is General Dynamics stock a buy? With its positive free cash flow of $4.1 billion, General Dynamics' cash profits fully back up reported trailing earnings of $4.1 billion. The company is projected to grow earnings better than 9% annually over the next five years, and it pays its shareholders a respectable 2% dividend yield. Based on these numbers, I'd value the stock at a minimum of $45 billion -- and probably a bit more based on the tremendous future sales growth implied by its book-to-bill ratio. That said, after today's run-up, GD stock currently costs well over $80 billion -- and I'm afraid that's too much to pay at present. My advice: Wait for better prices before buying GD stock. Should you buy stock in General Dynamics right now? Before you buy stock in General Dynamics, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and General Dynamics wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $641,800!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,023,813!* Now, it's worth noting Stock Advisor's total average return is 1,034% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why General Dynamics Stock Popped Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CTV News
6 days ago
- Business
- CTV News
General Dynamics quarterly results beat estimates on strong marine, jet business
In this Aug. 13, 1965 photo provided by the San Diego Air and Space Museum, technicians work on an Atlas Centaur 7 rocket at Cape Canaveral, Fla. (Convair/General Dynamics Astronautics Atlas Negative Collection/San Diego Air and Space Museum via AP) General Dynamics' second-quarter profit and revenue topped analyst estimates on Wednesday, aided by robust earnings from the marine segment and higher business jet deliveries. Shares of the company rose nearly three per cent in premarket trading. The Gulfstream jet maker's quarterly adjusted profit was US$3.74 per share, compared with analysts' estimates of US$3.53 per share, according to data compiled by LSEG. General Dynamics' aerospace segment, which is recovering from supply chain woes and longer certification times, was able to ramp up deliveries during the quarter ended June 29. During the period, the Reston, Virginia-based company's new G800 plane, the world's longest-range business aircraft, earned certification from the Federal Aviation Administration and the European Union Aviation Safety Agency. The plane has a range of 8,200 nautical miles (15,186 kilometres) at the Mach 0.85 long-range cruise speed, the company has said. The segment's aircraft deliveries hit 38 in the second quarter, compared with 37 in the same period a year ago. In the first quarter, the company delivered 36 Gulfstream jets. The unit's new bookings during the quarter were 1.3 times its billing, indicating a strong order book. Revenue in the aerospace segment rose 4.1 per cent from a year ago. General Dynamics' nuclear-powered submarine-making marine systems segment also saw a 22.2 per cent rise in revenue. During the quarter, the Pentagon had modified a submarine production contract awarded to the company's marine segment, raising the value multi-fold to US$1.85 billion. The company also entered into a new contract with its union members at its submarine-making unit, averting a shortage of skilled labor that has been contributing to delays in U.S. Navy ship building schedules. The Technologies segment, which makes products for a range of military, intelligence, federal civilian and state customers, experienced a 5.5 per cent year-on-year rise in revenue. Defense manufacturers continued to benefit from strong demand for weapons and other military equipment during the reported quarter owing to the geopolitical uncertainty and ongoing conflicts in the Middle East. The book-to-bill ratio was 2.4-to-1 for General Dynamics' defense segments. However, revenue within the combat systems part of the business, which manufactures land combat vehicles, weapons systems and munitions, edged down 0.2 per cent after taking a hit from the cancellation of the M10 Booker contract by the Pentagon as well as production delays owing to supply chain woes. The company's total quarterly revenue of US$1.30 billion also beat Wall Street analysts' estimate of US$1.23 billion. --- Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Leroy Leo and Paul Simao
The Independent
6 days ago
- Business
- The Independent
Exclusive: Trump admin seeks new jet to shuttle around Attorney General Pam Bondi and FBI Director Kash Patel
The FBI is seeking an ultra-long-range business jet to fly agents and other bureau personnel to far-flung global locations for counterterrorism response, 'high-risk operations,' and other 'sensitive missions,' according to a tranche of federal procurement documents reviewed by The Independent. Alongside the government's request for proposals, a related statement of objectives says the aircraft 'will also support executive transportation requirements for the FBI Director and the U.S. Attorney General,' namely, Kash Patel and Pam Bondi, who have both faced withering scrutiny in recent weeks for their handling of the fallout from the Epstein files. . The plane will be required to fly at speeds of Mach 0.83 or higher, with Mach 0.85 listed as 'preferred.' It must have a minimum range of 7,000 nautical miles, be able to seat at least 12 passengers, three crew, and 1,000 lbs. of cargo, the RFP states. That means the feds need something along the lines of a Gulfstream G800, which seats 19 and can travel 7,000 nautical miles at Mach 0.90, or a Bombardier Global 8000, which seats 19 and can travel 9,000 nautical miles at Mach 0.94. The RFP, which was issued July 11, says the bureau will lease the aircraft for an initial one-year period, with the possibility of four one-year extensions, after which the government will have the option to purchase the jet outright. No prices are included in the documents, but the G800 starts at about $72.5 million, while the base model Global 8000 lists for roughly $78 million. A Department of Justice spokesperson did not immediately respond Wednesday to a request for comment. Craig Holman, a governmental ethics and campaign finance expert at Washington, D.C. watchdog nonprofit Public Citizen, says the expenditure shows the Trump team going against its relentless claims of 'cost-efficiency.' 'For an administration that wants to put on a veneer of cutting waste, fraud and abuse in government spending, it sure doesn't have any qualms when it comes to lavish spending on expensive new jets and other luxuries for itself,' Holman told The Independent. This will be the third luxury aircraft so far being budgeted for travel by cabinet officials and the president, according to Holman. 'There is the extravagant Boeing [747] being bought from Qatar for Trump, a Gulfstream IV luxury jet for Homeland Security Director Kristi Noem, and now, an opulent long-range jet for FBI Director Patel and Attorney General Bondi for their traveling comfort. Meanwhile, the administration is slashing spending on health care, education and worker safety for the rest of us.' The successful bidder will deliver the private jet to the FBI's Aviation Operations Hangar at the Manassas Regional Airport in Manassas, Virginia, by next summer. 'The aircraft shall be fully mission operational and flight-ready, with all required Government-installed modifications (including secure communications suite), no later than June 24, 2026,' the RFP tells prospective sellers. In addition to hardened comms, the cabin must have two lavatories, one crew rest seat, one galley with microwave, coffee maker, refrigerator, sink and ice and beverage storage, according to the request. The bureau's 'preferred' features include four 'cabin zones with solid dividers, and a 'dedicated crew rest area with layflat seats/bunk,' it says. As far as cosmetics go, the aircraft's interior components – seating, cabinetry, flooring, lighting – must be in 'good condition, with no excessive wear, staining or damage,' the RFP states. Before delivery, the request says the jet 'shall be thoroughly cleaned inside and out,' and exterior paint 'shall be free of major defects, corrosion, or significant fading.' Further, the plane should have less than 2,500 hours of flight time, and be less than five years old. The contractor will be responsible for all scheduled and unscheduled maintenance, to be conducted at FAA-approved facilities, according to the RFP. The FBI will oversee minor routine tasks such as tire and fluid replacement, as well as 'minor repairs.' The flight crews will be provided by the FBI, which will 'maintain sole operational control,' the RFP states, adding that the bureau is self-insured up to $5 million for all flight operations. ' In excess of this limit, [the] FBI will seek Congressional appropriations,' the RFP says. The FBI paid $2.4 million to lease a Gulfstream V for six months in 2016, after a procurement process marked by numerous deficiencies, according to an audit the following year by the DOJ's Office of the Inspector General. In the six months since President Trump began his second stint in the White House, the administration has, among other things, decimated school lunch programs, thrown millions off of Medicaid, and enacted tax cuts that will boost incomes for the wealthy while raising taxes on working Americans.
