General Dynamics logo and a rising stock graph are seen in this illustration taken July 26, 2025. REUTERS/Dado Ruvic/Illustration

By Aatreyee Dasgupta

(Reuters) -General Dynamics on Friday beat Wall Street estimates for third-quarter profit and revenue, driven by strong business jet deliveries as affluent customers continued to spend on high-end air travel.

Shares of the Gulfstream jet maker rose more than 4% in early trading hours.

Recently, American Express, Delta Air Lines and Hilton signaled wealthier consumers were driving sales and increasingly making up a bigger portion of profits.

General Dynamics' adjusted profit came in at $3.88 per share for the quarter, above analysts' estimate of $3.70 per share, according to data compiled by LSEG.

The company's aerospace segment continued to recover from supply chain challenges, while its certification timelines reduced, enabling it to ramp up deliveries in the quarter ended September 28.

While the company posted a rise in earnings across all segments, "the Aerospace segment in particular performed impressively," CEO Phebe Novakovic said, noting "very strong" order activity for business jets.

New aerospace bookings during the quarter were 1.3 times its billing, indicating strength in the segment's order book.

The segment's quarterly revenue rose 30.3% as Gulfstream aircraft deliveries jumped to 39 units in the third quarter from 28 a year ago.

Defense manufacturers are seeing strong demand for weapons and other equipment due to the geopolitical uncertainty and ongoing conflicts in the Middle East, with some predicting strong profits for the rest of this year.

Among its defense units, General Dynamics' nuclear-powered submarine-making marine systems segment saw a 13.8% rise in revenue.

Revenue within the combat systems segment of the defense business - which makes land combat vehicles, weapons systems, and munitions - rose 1.8%.

The Reston, Virginia-based company reported a 10.6% rise in quarterly revenue to $12.91 billion, which also beat Wall Street analyst estimates of $12.57 billion.

The company has forecast total revenue of $52 billion for fiscal year 2025, up from its previous forecast of $51.2 billion. It maintained its operating margin outlook of 10.3%.

The company did not provide any further forecast for annual profit and segment-wise revenue forecasts.

"The uncertain duration and future potential impacts of the government shutdown creates a lack of clear visibility," CEO Novakovic said on a call with investors.

"So forecasts in this environment are difficult at best, and less reliable than one would hope."

(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Leroy Leo)