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

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Gulfstream G700 [Credit: Gulfstream]

Key Takeaways:

General Dynamics reported increased fourth-quarter earnings and revenue across all main businesses, achieving a record-high overall order backlog of $93.6 billion.
The company's Q4 results and full-year performance were negatively impacted by the delayed FAA certification of the G700 business jet, which resulted in over $1 billion in lost revenue and $250 million in earnings.
Despite the delay, the aerospace business segment saw strong orders, increasing its backlog to $20.5 billion, and 15 G700 aircraft are completed and ready for delivery once certification is achieved.

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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.