General Dynamics raised its 2026 revenue and profit forecasts on Friday after reporting stronger-than-expected third-quarter results, helped by robust demand for submarine programmes.
Rising military spending amid ongoing wars helped drive orders across the company's businesses.
General Dynamics booked nearly $99 billion in new orders during the quarter, including awards for five additional Columbia-class submarines and nine Virginia-class submarines, lifting backlog to a record $220.3 billion, more than double the levels seen a year earlier.
CEO Phebe Novakovic said during an earnings call on Friday that the company was seeing "significantly increased earned hours" at its shipyards, as prolonged supply-chain and labour bottlenecks ease.
Shares of the company were up one per cent.
The defence contractor forecast 2026 earnings-per-share to range between $17.20 and $17.30, up from its previous forecast of $16.80 to $16.90.
It expects annual revenue of $56.5 billion to $56.8 billion, up from about $55.7 billion previously.
The company's third-quarter profit came in at $4.49 per share, above analysts' average estimate of $4.13, according to data compiled by LSEG.
Its revenue rose nearly 13 per cent from a year ago to $14.57 billion, topping estimates of $13.73 billion.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Mrigank Dhaniwala and Shinjini Ganguli)