(Reuters) -General Dynamics beat Wall Street estimates for fourth-quarter profit on Wednesday, as sustained demand for military munitions and vehicles boosted its defense businesses.
The Virginia-based company reported a 14% rise in quarterly profit to $4.15 per share, compared with analysts’ estimates of $4.05 cents per share, according to data compiled by LSEG.
Global demand for weapons and other military equipment remained strong owing to the Russia-Ukraine war and the escalation of conflicts in the Middle East during the quarter.
Still, 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.
For the quarter ended Dec. 31, the General Dynamics unit which makes weapon systems and military vehicles posted a 1.3% rise in revenue, while its segment making nuclear-powered submarines reported a 16.2% rise.
Shares of the company were down 1.6% before the bell.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Devika Syamnath)
