Marine segment revenue up 16.2 per cent at General Dynamics

General Dynamics beat expectations for fourth-quarter results on Wednesday, as strength in the company's defense businesses offset persistent supply issues holding back jet deliveries.

The Russia-Ukraine war and the escalation of conflicts in the Middle East fueled demand for weapons and military vehicles during the quarter.

The company's three defense segments - combat systems, marine and technologies - posted revenue growth of 1.3 per cent, 16.2 per cent and 2.8 per cent, respectively.

Investors are concerned government defense budgets could face cuts under the newly formed Department of Government Efficiency (DOGE) headed by billionaire Elon Musk.

Some analysts, however, have said Trump's comments on acquiring Greenland and taking over the Panama Canal should support the case for increased spending.

"With respect to the DOGE, I think any actions that improve the efficiency and cost structure of organizations is a good thing and we would embrace that," said CEO Phebe Novakovic during the quarterly earnings call.

The Virginia-based company reported a 14 per cent rise in quarterly profit to $4.15 per share, compared with analysts' estimates of $4.05, according to data compiled by LSEG.

Total quarterly revenue rose 14.3 per cent to $13.34 billion, compared with estimates of $12.77 billion.

For 2025, General Dynamics forecast a total revenue of $50.3 billion, compared with 2024 revenue of $47.7 billion.

It sees 2025 company-wide profit of $14.80 per share, compared with $13.63 per share reported in 2024.

(Reporting by Aatreyee Dasgupta and Mike Stone; Editing by Devika Syamnath)