General Dynamics Says Q4 Earnings Grew but Were Hurt by Gulfstream G700 Delays

Anticipated FAA certification of the new business jet failed to occur during the quarter.

Jonathan Welsh

Thursday, January 25, 2024 at 04:00 PM ET

Verified

Gulfstream G700 [Credit: Gulfstream]

Key Takeaways:

General Dynamics reported increased Q4 earnings and revenue, with growth across all main businesses, and achieved a record-high total order backlog of $93.6 billion.
However, the delay in FAA certification for the G700 business jet significantly impacted financial results, leading to a miss of over $1 billion in revenue and $250 million in earnings.
Despite the certification delay, 15 G700 aircraft are ready for delivery once approval is granted, with the company anticipating their release this quarter.

See a mistake? Contact us.

General Dynamics (NYSE: GD) reported increased earnings for the fourth quarter, with growth in all of its main businesses. The company also said its backlog of orders grew to record levels. Still, it noted the delay in achieving FAA certification for the G700 business jet hurt results.

Net income for the recent quarter rose 1.3 percent to $1 billion, or $3.64 diluted earnings per share, compared with $992 million, or $3.58 per diluted share. Revenue increased 7.5 percent to $11.7 billion.