General Dynamics: Backlog hits record high on defense spending

General Dynamics' total estimated contract value reached $270.7 billion for the quarter ended October 4. This figure marks a sharp increase from $186.9 billion just three months prior. The jump was fueled by major submarine awards that pushed the company's backlog to an all-time high of $220.3 billion, up from $136.5 billion.

The company posted third-quarter profit of $4.49 per share, exceeding the average analyst estimate of $4.13. Total revenue climbed nearly 13% year over year to $14.57 billion. This performance beat the expected figure of $13.73 billion. Shares rose approximately 4% before the opening bell on Friday.

Gulfstream aircraft deliveries increased to 40 units during the quarter. This compares with 39 deliveries in the same period last year. Aerospace orders for the quarter totaled $5 billion. Management noted that supply-chain challenges across the Gulfstream and Marine divisions have eased, allowing the firm to ramp up production and reduce backlogs.

Demand for defense products remained strong, with total bookings reaching 6.8 times billings. General Dynamics attributed this strength to rising defense spending in the United States and Europe. These funds are supporting procurement and modernization programs across the company's defense businesses.

The company maintains a substantial backlog spanning long-cycle naval programs, including the Columbia-class and Virginia-class submarines. These long-term projects contribute to the record-setting contract value reported on Friday.