Global aerospace and defence company General Dynamics has reported fourth-quarter net earnings of $1 billion with a diluted EPS of $3.64 on a revenue of $11.7 billion; the highest quarterly EPS and revenue in company history.
General Dynamics’ wholly-owned subsidiary Gulfstream Aerospace Corporation’s Q4 orders totalled $3.2 billion, up from 4.8% in the final quarter of 2023. Its book-to-bill ratio was 1.2 to 1 for the quarter and the year, with Gulfstream anticipating a swift rise in deliveries following upcoming certification of its new G700 ultra-long range business jet.
“Our aerospace segment in particular saw solid execution and continued demand in the quarter and is well positioned for a surge in deliveries upon FAA certification of the G700,” said chairman and chief executive officer Phebe Novakovic.
Gulfstream delivered 32 large-cabin aircraft and seven mid-cabin aircraft in 2023, taking its total aircraft delivered during 2023 to 111. Although the all-new G700 and G800 Rolls-Royce Pearl 700 engines earned Federal Aviation Administration (FAA) certification in 2023, the aircraft itself has still not achieved similar regulatory approval.
General Dynamics’ total aerospace revenue for the quarter was $2,744 million with an operating margin of 16.4%, the highest across any of its four subsidiaries. Its overall operating margin for the full year 2023 stood at 13.7%, fractionally ahead of 2022’s total of 13.2%.