Third-quarter revenues at General Dynamics’ aerospace division—composed of Gulfstream Aerospace and Jet Aviation—climbed 9.3% from a year ago to nearly $3.54 billion, thanks to higher jet deliveries and a more favorable mix of jets at Gulfstream and an elevated aircraft services business at both subsidiaries, the parent company reported on Friday. Aerospace unit earnings in the quarter soared by 19.3%, to $513 million. For the first nine months, the division reported $10.34 billion in revenues, up 10.9% year over year (YOY), and earnings of $1.516 billion, up 19.8%.
Gulfstream delivered 40 jets (five super-midsize G280s and 35 large-cabin models) in the quarter and 119 aircraft (18 G280s and 101 large cabins) in the first nine months. This compares with 39 (six G280s and 33 large cabins) and 113 (18 G280s and 95 large cabins) aircraft shipments in the respective periods last year.
Notably, the 33rd Gulfstream G800 was handed over in the last quarter, said General Dynamics president Danny Deep, who will also take over the CEO title from retiring Phebe Novakovic on January 1.
Meanwhile, aerospace backlog climbed by about $1.5 billion quarter over quarter, to nearly $25.4 billion. Book-to-bill was 1.4:1 in the third quarter, up from 1.3:1 in the same period a year ago. Deep said demand for Gulfstream jets remains robust despite geopolitical and interest rate concerns.
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