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BATH, Maine - The U.S. Navy has exercised an option to add another DDG 51 destroyer to its multi-year contract with General Dynamics Bath Iron Works, according to a company statement released Thursday. General Dynamics (NYSE:GD), a prominent player in the Aerospace & Defense industry according to InvestingPro, has demonstrated strong financial stability with an impressive market capitalization of $83.7 billion.
The additional vessel will join seven other Arleigh Burke-class destroyers currently under construction at the Maine shipyard. The order comes as part of the multi-year contract originally awarded in 2023.
"We are proud to be selected to build this ship for the U.S. Navy and to continue our legacy of contributing to the nation’s defense," said Charles F. Krugh, president of Bath Iron Works, in the press release.
The Maine facility is currently constructing two Flight IIA Arleigh Burke-class destroyers, the Harvey C. Barnum Jr. (DDG 124) and Patrick Gallagher (DDG 127). Additionally, five Flight III configuration destroyers are in production: Louis H. Wilson Jr. (DDG 126), William Charette (DDG 130), Quentin Walsh (DDG 132), John E. Kilmer (DDG 134), and Richard G. Lugar (DDG 136).
Krugh noted that the company is working to improve construction processes and recover schedule delays to deliver ships more efficiently to the Navy.
The additional destroyer was included in the Fiscal Year 2025 Defense Appropriations Bill, according to the company statement.
Bath Iron Works is a business unit of General Dynamics (NYSE:GD), which reported revenue of $47.7 billion in 2024 and employs more than 110,000 people worldwide. The company has maintained strong financial performance, with revenue growing nearly 12% over the last twelve months to $50.3 billion. According to InvestingPro, General Dynamics has maintained dividend payments for 47 consecutive years and currently shows positive momentum with a 22.6% price return over the past six months. InvestingPro analysis suggests the stock is currently trading below its Fair Value, making it an interesting consideration for value investors. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro along with data for over 1,400 US equities.
In other recent news, General Dynamics reported strong second-quarter 2025 financial results, with earnings per share of $3.74, surpassing expectations by 5%. The company achieved a 9% growth in revenue compared to the same period last year, reaching $13 billion, exceeding the consensus estimate of $12.39 billion. Following these results, Citi raised its price target for General Dynamics to $368, maintaining a Buy rating, while RBC Capital increased its target to $330 with a Sector Perform rating. Bernstein also adjusted its price target upward to $335, citing the company’s solid earnings performance. Additionally, Wolfe Research upgraded General Dynamics to Outperform, highlighting improvements in its Gulfstream business jet segment. In terms of contracts, General Dynamics secured a $98 million extension from the U.S. Department of Defense to support U.S. Air Forces Central Command, bringing the total contract value to $814 million. These developments reflect the company’s strong financial performance and strategic positioning in the defense sector.
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