General Dynamics announced first-quarter results that surpassed Wall Street expectations, fueled by significant strength in its Marine Systems and aerospace divisions. The company's shares saw a notable increase in pre-market trading following the announcement.
Revenue from the Marine Systems segment surged by 21% year-over-year, attributed to improved productivity and recovery from prior supply chain disruptions and labor shortages. This segment is poised for further growth, supported by a substantial defense budget request that includes provisions for new warships.
The aerospace segment, which manufactures Gulfstream business jets, recorded an 8.4% revenue increase. Production is ramping up, aided by a recovering supply chain and sustained aftermarket business. Quarterly aircraft deliveries increased to 38, up from 36 in the previous year.
Overall, the defense contractor reported a 12% rise in quarterly earnings per share, reaching $4.10, exceeding the analyst consensus of $3.68. Total revenue climbed 10.3% to $13.48 billion, surpassing the $12.71 billion estimated by analysts.