Canada’s aviation regulator announced on February 10, 2026 that it has granted certification to Gulfstream’s G500, G600, G700 and G800 business jets, a decision that eliminates the threat of a 50 % U.S. tariff that former President Trump had warned could be imposed on Canadian‑certified aircraft.
The certification was issued by Transport Canada, the country’s civil aviation authority, after the FAA’s Administrator Bryan Bedford confirmed that the U.S. regulator had reviewed the Canadian approval and deemed it compliant with the Bilateral Aviation Safety Agreement. Bedford’s statement clarified that the FAA’s role was to validate safety standards, not to issue the Canadian certification itself.
With the barrier removed, General Dynamics can now sell Gulfstream jets in Canada without incurring additional duties, expanding its commercial aerospace revenue base. The move also protects the company from potential U.S. trade retaliation that could have decertified Canadian aircraft, a risk that had previously weighed on Gulfstream’s market access and pricing strategy.
General Dynamics reported fourth‑quarter 2025 results that beat earnings expectations by $0.06 per share, with revenue of $14.38 billion versus the consensus of $13.78 billion. The beat was driven by strong demand for Gulfstream aircraft, but operating margin slipped to 14.0 % from 14.3 % in the prior year, reflecting higher raw‑material costs and supply‑chain pressures. Management guided 2026 revenue to $54.3‑$54.8 billion and diluted EPS to $16.10‑$16.20, a modest upside from the previous outlook of $52‑$54 billion and $15.50‑$15.80, signaling confidence in sustained demand despite margin compression.
Despite the earnings beat, the market reacted negatively, with analysts citing margin pressure and a valuation that many view as high. The negative sentiment underscores that while the certification removes a trade risk, investors remain concerned about the company’s ability to maintain profitability in a cost‑inflated environment.
CEO Phebe Novakovic said the certification “reinforces Gulfstream’s position as a leading business‑jet provider and removes a significant trade risk that could have impacted our Canadian sales.” She added that the company is “focused on delivering strong demand, managing costs, and maintaining a healthy margin profile” as it navigates the broader aerospace market.
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