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

1. $12.4 billion awarded for constructing two Virginia-class submarines by GD. 2. Contract includes options that could raise total value to $17.2 billion. 3. Contracts boost wages and investments in shipyard productivity and workforce support. 4. Virginia-class submarines designed for modern warfare and special operations. 5. General Dynamics Electric Boat strengthens its role in national defense.

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FAQ

Why Very Bullish?

The substantial contract boost confirms strong demand in defense, historically leading to price surges.

How important is it?

The contract positively affects GD's financial outlook, ensuring consistent revenue flow and market competitiveness.

Why Long Term?

Increased capacity and wages strengthen GD's market position for future contracts, aiding sustained growth.

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HIINOCLMTRTX
, /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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