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Gulfstream Aerospace, based in Savannah, Georgia, delivered fewer G700 aircraft than expected in the second quarter of 2024. This comes as the company addresses a last-minute modification issue. The ultra-long-range G700 model received FAA certification at the end of the first quarter, with EASA approval following in mid-May.
In April, Gulfstream delivered its first two G700s and by early June had delivered a total of eight units. Aircraft brokerage Hagerty Jet Group reported that some aircraft remain in Savannah. "In April, General Dynamics reported that they will hand over 50 or more G700s by the end of the year...which seems a bit optimistic considering that we just turned the corner on the second half of the year," stated Hagerty.
Analyst firm Baird confirmed these figures and suggested earnings may shift to later in the year. "We are surprised by the slower-than-anticipated start for G700 deliveries with so many airframes on the tarmac ready to be handed over to customers," said Baird analyst Peter Arment. He noted that their 2Q24 EPS estimates were reduced by $0.28 to $3.02, below the consensus of $3.34.
