Updated Version 4 - General Dynamics raises annual performance forecast due to strong orders for Gulfstream aircraft and marine business

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Reuters, October 30 - General Dynamics (GD.N) raised its 2026 revenue and profit forecasts on Friday after posting stronger-than-expected third-quarter results, thanks to robust demand for Gulfstream business jets and submarine projects.

Ongoing wars have driven up military spending, and private aviation demand has remained strong, jointly boosting order growth across the company's business segments.

General Dynamics secured nearly $99 billion in new orders this quarter, including contracts for five additional Columbia-class submarines and nine Virginia-class submarines, bringing its backlog to a record $220.3 billion—more than double that of the same period last year.

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Chief Executive Officer Phebe Novakovic said during Friday's earnings call that "actual hours worked in our shipyards have increased significantly," as longstanding supply chain and labor bottlenecks gradually ease.

General Dynamics said its aerospace segment booked $5 billion in orders this quarter.

Gulfstream jet deliveries rose to 40 aircraft, up from 39 a year ago.

The company's share price rose 1%.

The defense contractor forecasts 2026 earnings per share will be between $17.20 and $17.30, up from the previous estimate of $16.80 to $16.90.

The company expects annual revenue to be between $56.5 billion and $56.8 billion, higher than the previous forecast of around $55.7 billion.

According to data compiled by London Stock Exchange Group (LSEG), third-quarter earnings per share were $4.49, beating the analysts' average forecast of $4.13.

Revenue grew nearly 13% year-over-year to $14.57 billion, surpassing the expected $13.73 billion.

(To facilitate non-native English speakers, Reuters provides automated translations of its reports into several other languages. As automated translations may contain errors or may not include all necessary context, Reuters does not guarantee the accuracy of the translated texts, which are provided solely for reader convenience. Reuters is not liable for any damage or loss caused by the use of automated translation features.)