Gulfstream Deliveries Climb 54% as G700 Provides Lift

Second-quarter aircraft deliveries soared by 54% year over year (YOY) at Gulfstream Aerospace, to 37 aircraft (six super-midsize G280s and 31 large-cabin jets). While G280 handovers were flat from a year ago, the large-cabin jet shipments climbed by 72%, mostly driven by 11 deliveries of the recently certified G700. First-half deliveries rose nearly 36% YOY, to 61 jets (nine G280s and 52 large cabins), putting it on pace to reach parent company General Dynamics’ forecast of about 150 this year.

According to General Dynamics chairman and CEO Phebe Novakovic, 15 G700 deliveries were planned in the quarter, but four slipped into July—two related to cabin STC approvals. One is now in the hands of the customer, while the other three handovers are “imminent.” She reconfirmed that Gulfstream will deliver 50 to 52 G700s this year, with 16 more planned by October and 23 to 25 in the fourth quarter.

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The slower start for the G700 stemmed from a late certification requirement to bundle some wires in the tail, requiring tail removal of already manufactured aircraft to do the “minor” modification before delivery, Novakovic said. She added that this issue is now “largely behind us.”

Revenues at General Dynamics’ aerospace division—which includes Gulfstream and Jet Aviation—ascended 50.5% YOY, to $2.94 billion, in the quarter, while earnings rose 35%, to $319 million.

Demand for Gulfstreams “remains very strong,” according to Novakovic, with North America on top, but with Europe and the Middle East “rising” and the China market showing signs of life again. However, she noted that geopolitical events and the U.S. election are headwinds. Aerospace book-to-bill in the quarter was 0.9:1, with backlog eroding to $20.41 billion—down about $400 million from the start of the year.

Meanwhile, Novakovic said the G400 will make its first flight "very soon." She did not address the G800 program during today's investor call, but previously said certification of that G700 derivative would trail the G700 by six to nine months, meaning later this year or in early 2025.