We are reviewing President Joe Biden's fiscal 2025 defense budget request, released March 11, which is limited by a compromise struck in mid-2023 to avoid government shutdown at only a 1% increase over the 2024 sum.
General Dynamics’ Gulfstream franchise has top-tier volume share and margin in the large end of the business jet market and has successfully transitioned to new G500, G600, and G650 models. Business jets are in high demand as the pandemic wanes.
Bears
General Dynamics depends on U.S. military funding, which is an inherently political and thus uncertain process.
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General Dynamics is a defense contractor and business jet manufacturer. The firm’s segments include aerospace, marine, combat systems, and technology. General Dynamics' aerospace segment creates Gulfstream business jets and operates a global aircraft servicing operation. Combat systems produces land-based combat vehicles such as the M1 Abrams tank and Stryker armored personnel carrier, as well as munitions. The marine segment builds and services nuclear-powered submarines, destroyers, and other ships. The technologies segment contains two main units, an IT business that primarily serves the government market and a mission systems business that focuses on products that provide command, control, computing, intelligence, surveillance, and reconnaissance capabilities to the military.