CLAIM #25567 · GD (GD) · 2024Q3 earnings call · Oct 23, 2024 · due Dec 31, 2025
“So we have long said that services is going to grow at the rate of the fleet expansion.”
Phebe Novakovic · CEO
In context
“So those are -- it's a large group. I think that's all I'm about the most color I'm going to give you on where some of the challenges are because the navy has been kind of explicit in some instances about that. And I think that's just a better place to be. Operator: We'll go next to Ken Herbert at RBC Capital Markets. Kenneth Herbert: Yeah, hi, good morning. Thanks for taking the questions. Maybe first, Phebe, on services within Aerospace, you had nice growth here again. You've sort of reset, it looks like at a sort of a much higher level. I know you've added capacity. Is this a good run rate to think about for the services business within this and maybe if you could talk about how dilutive this part of the business is relative to the aircraft side within this segment? Phebe N. Novakovic: So we have long said that services is going to grow at the rate of the fleet expansion. And think about it this way, we gather -- we garner between 85% and 90% plus of all Gulfstream service. And so as the fleet expands, service expands. Its impact on overall margins tends to be rather lumpy, but it is in some instances in some quarters, it's about even, so it's certainly not any large dilution impact and hasn't been for some time. So this is a nice, steady growth business. Kenneth Herbert: Okay. And on the quality escape, I guess, with how deliveries are trending in this month and your confidence, you feel good about that risk getting retired or is there anything -- it sounds like there is clearly still some caution into the back half of the year, but do you feel good about that particular supplier and getting back on schedule? Phebe N. Novakovic: Yes. They're working very”
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SEC filings for GD ↗ · Claim quote is verbatim from the 2024Q3 earnings call.