Two major business aircraft manufacturers reported higher earnings year to year, as well as increased volume in their new aircraft backlogs.
Textron Inc., parent company of Cessna, Beechcraft and Bell Helicopters, along with General Dynamics, parent company of Gulfstream, released their earnings reports to shareholders for the first quarter of 2022.
Textron reported a profit of $0.88 per share, up 18 cents from the same timeframe a year ago. Gulfstream reported $5.61 earnings per share, up 5.2% year to year.
The reports come as new numbers show that overall U.S. GDP contracted 1.4% in the first quarter, stoking fears of a recession. However, the business jet aircraft market remains hot, even with reports of plateauing demand as supply remains scant, keeping prices high. Those notions of market-driven high price tags were mentioned in the companies’ earnings reports.
Textron Aviation 1Q 2022 Earnings
The aviation division of Textron reported $1 billion in revenue, up $175 million year to year. The company says that was driven by higher aircraft and aftermarket volume.
Of that, $121 million was profit, a 257% increase from the first quarter of 2021.
Textron delivered 39 jets in the first quarter, compared to 11 last year. It also delivered 31 turboprops, up from 14 last year.
Textron Aviation’s backlog swelled from $1 billion at the end of last year to $5.1 billion to close the quarter.
“In the quarter, we saw higher overall revenues, net operating profit and cash generation as compared to last year’s first quarter,” said Textron Chairman and CEO Scott C. Donnelly.
General Dynamics 1Q 2022 Earnings
General Dynamics reported earnings of $730 million on revenue of $9.4 billion in the first quarter. The company also recorded its highest aircraft backlog in more than a decade.
That backlog is valued at $87.2 billion, according to a statement from the company.
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“Aerospace backlog grew for the fifth consecutive quarter, driven by continued strong Gulfstream demand while operating discipline and growth in aviation services increased the group’s margins,” said General Dynamics CEO Phebe N. Novakovic.
Other aviation-related quarterly reports
The aviation division of GE reported orders of $7.2 billion, a 31% increase, with both commercial engines and commercial services up substantially again. Military sales were down largely due to significant gains in engine sales last year.
Commercial engines revenue was down double-digits, GE said, driven by supply chain constraints and lower production rates.
Boeing Aerospace reported a $1.2 billion loss for the first quarter, logging losses in both civilian aircraft and defense sales, as the company missed Wall Street expectations.
Bombardier Aerospace is set to report its earnings for the first quarter on May 5.
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