General Dynamics (NYSE: GD) has presented its first quarter 2024 results and reported that revenue and net earnings grew 8.6 percent and 9.5 percent year-over-year to $10.7 billion and $799 million.
The company said Wednesday its operating earnings reached $1 billion, or 10.4 percent higher from a year ago, while company-wide backlog went up 4.4 percent to $93.7 billion compared to Q1 2023.
Phebe Novakovic, chairman and CEO of General Dynamics and a nine-time Wash100 awardee, remarked, “Our businesses delivered solid operating results in the quarter, growing revenue and backlog while expanding margins, even as we awaited G700 certification.”
General Dynamics’ stock price dropped 3.97 percent to $281.11 mid-week because no G700 jets were delivered. However, Novakovic assures that the recent FAA certification of G700 will enable the Aerospace segment to begin customer deliveries. The plan this year is 50 to 52 G700s.
At the quarter’s end, the total estimated contract value of all backlog components was $134 billion, with growing backlogs in the Aerospace and Defense segments. The former had $20.5 billion in backlog, while the latter reported $8.8 billion.
During the conference call, Novakovic noted the increasing demand for combat systems, particularly in Europe. She said the threat environment is the reason for the increased orders for combat-wheeled and tracked vehicles and significant bridge orders. She adds that the demand signal will continue until the threat environment improves.
With the expected deliveries of the first lot, or 20 G700s, Novakovic anticipates revenue of about $1 billion to $1.1 billion and earnings between $100 million and $110 million in Q2 2024.
