General Dynamics awarded $1.85 billion submarine contract modification

Published 02/07/2025, 15:38
General Dynamics awarded $1.85 billion submarine contract modification

GROTON, Conn. - General Dynamics Electric Boat, a business unit of General Dynamics (NYSE:GD), has been awarded a $1.85 billion contract modification for submarine production, the company announced Wednesday. The contract adds to General Dynamics’ robust $78.3 billion market capitalization, with InvestingPro data showing the company maintains a "GOOD" financial health rating.

The modification to a previously awarded contract covers long lead time material and preliminary construction efforts for Virginia-class submarines, according to the company statement. The U.S. Department of Defense announced the contract award on June 26.

The funds will be used to acquire critical components that require substantial lead time to manufacture and deliver, supporting the ongoing production of nuclear submarines for the U.S. Navy.

"This contract modification allows for the acquisition of critical material and components for Virginia-class submarines that require substantial lead time to manufacture and deliver," said Mark Rayha, president of General Dynamics Electric Boat, in the press release.

General Dynamics Electric Boat, headquartered in Groton, Connecticut, designs, builds, repairs and modernizes nuclear submarines for the U.S. Navy. The company employs more than 24,000 people.

The parent company, General Dynamics, is based in Reston, Virginia, and operates across aerospace and defense sectors. The company reported $47.7 billion in revenue in 2024 and employs more than 110,000 people worldwide.

In other recent news, General Dynamics has been active with a series of substantial contract awards. The company secured a significant $1.85 billion contract modification for Virginia-class Block VI submarines, with work distributed across several states, including a major portion in Sunnyvale, California. Additionally, General Dynamics Information Technology was awarded a $580 million task order to maintain force protection systems for U.S. Army bases worldwide, ensuring the security of military installations. In another development, General Dynamics Electric Boat Corp. received a $57.8 million contract for submarine valves, with work to be completed in Annapolis, Maryland.

Moreover, General Dynamics Land Systems Inc. has been awarded a $150 million contract from the U.S. Department of Defense for the Abrams Engineering Program, with the project set to be completed by June 2027. The company also secured three separate defense contracts totaling approximately $150 million for naval and air force projects, including work on the USS Ronald Reagan aircraft carrier. These recent developments highlight General Dynamics’ ongoing involvement in key defense projects and its partnerships with various branches of the U.S. military.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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