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FALLS CHURCH, Va. - General Dynamics Information Technology (GDIT), a division of the $78.4 billion market cap defense giant General Dynamics (NYSE:GD), has been awarded a $580 million task order to sustain force protection systems for U.S. Army bases worldwide, the company announced Thursday in a press release. According to InvestingPro data, General Dynamics maintains strong financial health with a "GOOD" overall rating, suggesting robust operational capability for such major contracts.
The Integrated Base Defense Sustainment Support contract, awarded in May, includes a one-year base period with four option years. GDIT will maintain security systems including radars, cameras and sensors at Army installations globally, including in high-threat locations.
These systems are designed to protect military installations, personnel and infrastructure from unauthorized access, surveillance, drone activity and cyberattacks. The company will work to ensure operational availability of these systems while using its Cove AI Ops Digital Accelerator to enhance logistics support and reduce operating costs.
"The Army relies on resilient, always-ready defense systems to protect its soldiers and operations around the world," said Brian Sheridan, GDIT’s senior vice president for Defense, according to the company statement.
GDIT, a business unit of General Dynamics (NYSE:GD), has previously secured contracts with the Army, including two task orders last year to train more than 500,000 soldiers. The company also provides flight school training to 4,000 Army students annually and cyber operations support to the Army National Guard.
General Dynamics employs over 110,000 people worldwide and generated $49.2 billion in revenue in the last twelve months. The company has maintained dividend payments for 47 consecutive years, with a current yield of 2.1%. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading near its fair value, with analysts projecting continued profitability this year.
In other recent news, General Dynamics has been awarded several significant contracts, highlighting its continued partnership with the U.S. Department of Defense. General Dynamics Electric Boat Corp. secured a $986.8 million contract modification to support submarine development, including work on Columbia-class ballistic missile submarines and Virginia-class submarines, with completion expected by December 2031. Additionally, the company received a $57.8 million contract for submarine valves, with work set to be completed by December 2028. General Dynamics Land Systems Inc. also obtained a $621 million contract modification for SGT Stout systems, with an estimated completion date of September 2028.
In the aerospace sector, TD Cowen raised its price target for General Dynamics to $300, citing improved delivery trends for the Gulfstream G700 business jet. The firm anticipates 15 G700 deliveries in the second quarter, indicating stronger-than-expected production capabilities. General Dynamics Information Technology (GDIT) secured a $396 million contract to provide IT services to the U.S. Special Operations Command, emphasizing digital modernization and cybersecurity enhancements. This contract includes a one-year base period with four option years, focusing on enabling operational and intelligence information transfer in challenging environments.
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