1. $642 million contract awarded to General Dynamics Electric Boat for submarine production. 2. Modification supports Virginia-class submarine development and delivery for the Navy. 3. Funding enhances design and production capabilities against potential adversaries. 4. General Dynamics expects to sustain operational advantage via Navy support.
The substantial contract boosts GD's revenue prospects, mirroring successful past contract awards like the $2 billion for previous Virginia-class work, which positively influenced stock performance.
The awarded contract indicates stable revenue streams and growth potential, which are central to investors' evaluations of GD's future performance.
Immediate financial boosts from the contract will affect near-term earnings, as visible in past spikes following similar news.
GROTON, Conn., Sept. 26, 2025 /PRNewswire/ -- General Dynamics Electric Boat, a business unit of General Dynamics (NYSE: GD), announced today it has been awarded a $642 million contract modification to a previously awarded contract supporting submarine production. This modification is for a cost-plus-fixed-fee modification to a previously awarded contract (N00024-20-C-2120) for Lead Yard Support and Development Studies and Design efforts related to Virginia-class submarines, as detailed in the U.S. Department of War contract award.
"This contract modification supports our efforts to deliver the submarines our Navy needs as quickly as possible," said Mark Rayha, president of General Dynamics Electric Boat. "This funding allows us to continue our design and development efforts in order to sustain and extend our nation's operational overmatch against any potential adversaries. With the support of the administration, the Navy and Congress, we are prepared to deliver the advantage to protect our sailors, our families and our freedom."
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.
Headquartered in Reston, Virginia, 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 is available at www.gd.com.
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SOURCE General Dynamics