Bizjet Deliveries at Gulfstream Aerospace Hit 1Q Record

Gulfstream Aerospace saw its highest-ever first-quarter delivery total, with 38 business jets (31 large-cabin and seven super-midsize G280s) handed over, Danny Deep, president of parent General Dynamics, said this morning during an investor call. That compares with deliveries of 36 aircraft (30 large-cabin and six G280s) in the same period last year.

According to Deep, the aerospace division—Gulfstream and FBO/MRO provider Jet Aviation—performed “very well” in the quarter. Revenues at the division rose 8.4% year over year, to $3.279 billion, while earnings soared 14.1%, to $493 million. Order intake stood at $3.843 billion, equating to a 1.2:1 book-to-bill ratio. Backlog, meanwhile, climbed to $22.267 billion as of March 31—up about $500 million quarter over quarter and some $3.3 billion higher than a year ago.

Despite the strong sales, Deep noted that the Iran war slowed some Gulfstream order intake toward the end of the first quarter, though he said the business jet industry remains “durable.” He also expressed concerns about supply of the G280, which is manufactured in Tel Aviv at Israel Aerospace Industries, due to labor issues caused by military call-ups related to the war.

Still, Deep expects deliveries in the second quarter to be similar to those of the first quarter, with the third and fourth quarters seeing increasingly higher shipments. He said the 25th G800 will also be handed over in the second quarter.