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 Q4 earnings and record-high company-wide order backlog, with growth across all main businesses.
The delay in FAA certification for the G700 business jet significantly impacted Q4 and full-year financial results, causing the company to miss consensus estimates.
Despite the certification delay, General Dynamics has 15 G700 aircraft ready for immediate delivery once approved, with expectations for this quarter.

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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.