Gulfstream Deliveries, Sales Continue To Soar in 3Q22

 - October 26, 2022, 12:36 PM

General Dynamics subsidiary Gulfstream Aerospace delivered 35 aircraft (28 large-cabin jets and seven midsize G280s) in the third quarter, up from 31 (25 large-cabins and six G280s) in the same period a year ago. In the first nine months, it handed over 82 aircraft (66 large-cabins and 16 G280s), up from 80 units (68 large-cabins and 12 G280s) a year earlier.

Four G500/600 deliveries in the third quarter were deferrals from the previous quarter as customers waited for a software fix that removed crosswind landing limitations. The FAA approved the software update and all 188 in-service G500/600s have received the upgrade, General Dynamics chairman and CEO Phebe Novakovic said this morning during a quarterly investor call.

To reach its 2022 delivery estimate of 121 jets, the company will need to ship at least 39 aircraft in the fourth quarter. Deliveries are expected to ramp up to 148 next year and reach a record 170 in 2024.

According to Novakovic, these numbers are achievable given the current sales environment and growing backlog—$19.1 billion as of September 30—at its aerospace division, which also includes FBO/MRO company Jet Aviation. Aerospace book-to-bill was 1.2:1 in the quarter and 1.6:1 year-to-date. At Gulfstream, that ratio in the third quarter was 1.3:1, reflecting “strong sales from the U.S., Middle East, and Southeast Asia,” she said.

Novakovic said the supply chain still remains a headwind but added that Gulfstream has so far been able to manage the situation to keep aircraft deliveries on schedule.

During the quarter, the aerospace division’s revenues climbed by 13.6 percent year-over-year, to $2.35 billion, while profits rose 13.3 percent, to $312 million. Novakovic added that the aerospace group is expected to perform better than forecast this year. General Dynamics earlier this year projected $8.4 billion in revenues for the division and upped that to $8.6 billion in July.