General Dynamics lifts outlook on Gulfstream, shipbuilding strength

By Aatreyee Dasgupta

July 29 (Reuters) - ‌General Dynamics on ​Wednesday ​raised its full-year profit forecast after reporting better-than-expected second-quarter results, as strength in its Gulfstream business jet and shipbuilding ‌operations boosted earnings and revenue.

The defense contractor expects 2026 earnings ⁠of $16.80 to $16.90 per share, up from its prior forecast of $16.45 to $16.55.

Total bookings during the ‌quarter were 1.4 times billings, ‌suggesting robust demand for the company's defense and aerospace products.

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 Gulfstream business jet maker now sees full-year revenue of about $55.7 billion, slightly ⁠above estimates of $55.4 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.

During a post earnings call, company president Danny Deep said Gulfstream was seeing "very active interest" ⁠across its lineup in the United States and Asia, though Middle East customers remained cautious.

The company forecast Aerospace's 2026 revenue at around $13.8 billion and reiterated annual ⁠deliveries of about 160 airplanes.

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 shipyard.

Marine Systems posted a 10.4% year-over-year rise ‌in quarterly revenue and is expected to post annual revenue of around $18 billion.

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.

General Dynamics ‌reported quarterly per-share profit ​of $4.24, compared with analysts' estimate of $3.97, according to data compiled by LSEG.

(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by ‌Tasim Zahid)

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