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GROTON, Conn. - General Dynamics Electric Boat, a subsidiary of General Dynamics (NYSE: GD), has secured contract modifications worth $12.4 billion for the construction of two Virginia-class submarines for the fiscal year 2024. The announcement, which was made today, also includes provisions for investments aimed at enhancing productivity and supporting the workforce at the shipyards, as outlined in the Department of Defense contract award announcement. The contract adds to General Dynamics’ robust $49.2 billion in trailing twelve-month revenue, reinforcing its position as a prominent player in the Aerospace & Defense industry, according to InvestingPro data.
The contract has options that could increase its total value to $17.2 billion if exercised. Mark Rayha, president of General Dynamics Electric Boat, stated that the contract modification underscores the critical role that submarines and their builders play in U.S. national defense. With 14 analysts recently revising earnings estimates upward, InvestingPro analysis suggests strong market confidence in the company’s growth trajectory.
Virginia-class submarines are engineered for a wide range of missions in the 21st century, including anti-submarine warfare, surface ship warfare, and support for special operations. General Dynamics Electric Boat, headquartered in Groton, Connecticut, is the lead contractor and designer for the Virginia-class series, collaborating with HII’s Newport News Shipbuilding in Virginia for their construction.
Employing over 24,000 individuals, General Dynamics Electric Boat specializes in the design, construction, repair, and modernization of nuclear submarines for the U.S. Navy. General Dynamics, a global aerospace and defense company, employs more than 110,000 people worldwide and reported revenues of $47.7 billion in 2024. The company’s diverse portfolio covers business aviation, ship construction and repair, land combat vehicles, weapons systems, munitions, and various technology products and services.
This strategic contract modification aligns with General Dynamics Electric Boat’s ongoing contributions to national defense and reflects the company’s pivotal role in submarine manufacturing and innovation. The information reported is based on a press release statement from General Dynamics.
In other recent news, General Dynamics Corporation reported impressive financial results for the first quarter of 2025. The company achieved earnings per share (EPS) of $3.66, surpassing the consensus forecast of $3.45. Revenue reached $12.2 billion, exceeding expectations and marking a 13.9% increase year-over-year. The Aerospace segment was a standout performer, with a remarkable 45.2% revenue growth driven by the certification of the Gulfstream G800 and a 50% rise in aircraft deliveries. RBC Capital Markets maintained their Sector Perform rating on General Dynamics, citing concerns over tariffs and defense budget allocations, but noted the potential for an upward revision in the company’s 2025 guidance in the second quarter. Despite the earnings beat, there is caution among investors due to macroeconomic uncertainties and potential geopolitical risks. General Dynamics’ robust backlog and contract pipeline, valued at $141 billion, underscore its competitive position in the market. Analysts anticipate further updates in the company’s second-quarter results, which may address ongoing challenges related to tariffs and defense budgets.
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