Military equipment for Ukraine helps fuel General Dynamics’ profit.

The third-quarter results of U.S. defense contractor General Dynamics (GD.N) on Wednesday were above Wall Street projections due to higher expenses partially offset by demand for armored vehicles and artillery, fueled partly by the need to replenish supplies supplied to Ukraine.

The corporation profited from the Pentagon’s expenditure on resupplying Ukraine with weapons, such as new 155-millimeter artillery, crucial to Ukraine’s combat strategy in fending off the Russian invasion.

Additional armaments, including Stryker and Abrams tanks, have already been dispatched to Ukraine and are expected to be replenished.

According to LSEG statistics, the Reston, Virginia-based company’s shares increased 4.4% after it announced a quarterly profit of $3.04 per share, exceeding analyst projections of $2.91, and a 6% increase in revenue to $10.57 billion, also exceeding predictions.

Chief financial officer of General Dynamics Jason Aiken stated that artillery has “been a big pressure point with Ukraine, one that we’ve been doing everything we can to support our (U.S.) Army customer.”

He also stated that output has increased from 14,000 to 20,000 monthly rounds.

When comparing orders received to units shipped and billed, the company’s book-to-bill ratio was 1.4 to 1.

However, due to difficulties with the supply chain making it more difficult to deliver planes, sales at the company’s aerospace division, which manufactures Gulfstream business jets, fell 13.4%.

Gulfstream delivered the 27 planes it had promised to deliver in the previous quarter, but that was far fewer than the 35 jets it had supplied in the same time the previous year. Seventy-two of the business planes have been delivered so far this year.

During a conference call with investors following its earnings, Aiken stated that it anticipates 135 to 137 deliveries in 2023, compared to 139 to 140 in July.

The company’s ability to deploy G700 business aircraft will depend on their certification.

On Wednesday, Sheila Kahyaoglu, a Jefferies analyst, noted that “this could still be possible given 40 G700s are built and awaiting certification, and guidance (from management) of 19 G700s” to be manufactured in the fourth quarter.

“All in, including G700, we anticipate in excess of 60 deliveries in the fourth quarter, assuming we’re granted FAA certification before the end of the year,” Aiken stated.

Along with other military companies, RTX (RTX.N) and Lockheed Martin (LMT.N), General Dynamics also reported better-than-expected quarterly profits.