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General Dynamics Electric Boat Awarded $12 Billion Contract Modification for Virginia-Class Submarines

1. General Dynamics Electric Boat awarded $12.4 billion for two submarines. 2. Contract modifications could increase total to $17.2 billion if options exercised. 3. Investment includes workforce support and productivity improvements for shipyards. 4. Virginia-class submarines address modern mission requirements including special operations. 5. General Dynamics employs over 110,000 globally and generated $47.7 billion revenue.

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FAQ

Why Bullish?

The significant contract value enhances GD's revenue outlook, reminiscent of previous defense spending boosts impacting stock prices positively.

How important is it?

The multi-billion dollar contract supports GD's core business, likely driving investor confidence and share price appreciation.

Why Long Term?

Continued investments in defense contracts indicate sustained demand, likely improving futures. Similar patterns noted post-increased military budgets previously.

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HIINOCRTX
, /PRNewswire/ -- General Dynamics Electric Boat, a business unit of General Dynamics (NYSE: GD), announced today it has been awarded a total of $12.4 billion in contract modifications for construction of two fiscal year 2024 Virginia-class submarines. Additionally, the award funds investments to improve productivity at the shipyards and workforce support as detailed in the Department of Defense contract award announcement (https://www.defense.gov/News/Contracts/Contract/Article/4170827/). This contract includes options which, if exercised, would bring the cumulative value to $17.2 billion. Virginia Class submarine underway during sea trials in Groton, Conn. "Over the past two years, we successfully worked with the Navy, Congress and the administration to secure funds that enable us to increase wages for the nuclear-powered vessel workforce and allow for significant additional investments in capacity, shipyard processes and systems," said Mark Rayha, president of General Dynamics Electric Boat. "This contract modification validates the unique and important role submarines and submarine shipbuilders play in our national defense." Virginia-class submarines are designed from the keel up for the full range of 21st-century mission requirements, including anti-submarine and surface ship warfare and special operations support. General Dynamics Electric Boat is the prime contractor and lead design yard for the Virginia-class submarine series and constructs them in a teaming arrangement with HII's Newport News Shipbuilding in Virginia. General Dynamics Electric Boat designs, builds, repairs and modernizes nuclear submarines for the U.S. Navy. Headquartered in Groton, Connecticut, it employs more than 24,000 people. More information about General Dynamics Electric Boat is available at www.gdeb.com.General Dynamics is a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapons systems and munitions; and technology products and services. General Dynamics employs more than 110,000 people worldwide and generated $47.7 billion in revenue in 2024. More information about General Dynamics is available at www.gd.com.SOURCE General Dynamics WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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