July 29 (Reuters) – General Dynamics on Wednesday beat Wall Street estimates for second-quarter profit and revenue, driven by strength in its aerospace and marine segments.
The defense contractor reported quarterly per-share profit of $4.24, compared with analysts’ estimate of $3.97, according to data compiled by LSEG.
Total bookings during the quarter were 1.4 times billings, suggesting robust demand for the company’s defense and aerospace products.
“Our businesses delivered solid results in the quarter, with revenue growth across all four segments – including double-digit increases in revenue and noteworthy margin expansion in Aerospace and Marine Systems,” said CEO Phebe Novakovic.
For the quarter ended July 5, total revenue rose more than 8% from a year ago to $14.09 billion, compared with estimates of $13.54 billion.
The Aerospace segment remained a key top-line driver as its Gulfstream brand continued ramping production of its newer G700 and G800 business jets.
The segment posted a 15.1% year-on-year rise in revenue for the quarter, while deliveries increased by three units to 41 aircraft.
The G800, Gulfstream’s newest ultra-long-range aircraft, entered service after receiving key regulatory approvals, supporting expectations for higher deliveries and profitability through the year.
General Dynamics’ Marine Systems segment saw increased productivity during the quarter as it recovered from supply-chain disruptions and labor shortages, helping support production of Columbia- and Virginia-class submarines at its Electric Boat shipyard.
Marine Systems posted a 10.4% year-on-year rise in quarterly revenue. The segment is expected to further benefit from U.S. defense spending plans and rising demand for naval platforms.
While the Technologies segment saw a 4.1% revenue increase, the Combat Systems segment’s revenue growth was almost flat, at just 0.3% year-on-year.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Tasim Zahid)
