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General Dynamics Electric Boat awarded a $987 million contract modification for long lead time material and construction costs for submarine production

1. General Dynamics Electric Boat awarded a $987 million contract modification. 2. The modification supports submarine production and supplier development. 3. Work is expected to complete by 2031 in multiple states. 4. Contract supports Navy's current and future submarine demands. 5. General Dynamics employs over 110,000 worldwide and generated $47.7 billion revenue.

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FAQ

Why Bullish?

The substantial contract modification suggests strong demand for GD’s submarine production, potentially increasing future revenues. Similar past contracts have historically correlated with stock price growth.

How important is it?

The awarded contract signals government commitment to military contracts, enhancing GD’s financial outlook and stabilizing its market position.

Why Long Term?

The completion timeline extends to 2031, signifying sustained revenue growth and operational stability over several years, akin to the long-term growth seen from previous military contracts.

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, /PRNewswire/ -- General Dynamics Electric Boat, a business unit of General Dynamics (NYSE: GD), announced today it has been awarded a $987 million contract modification to a previously awarded contract supporting submarine production. This modification is for additional Component Development, Class Lead Yard Support (CLYS), and Submarine Industrial Base (SIB) supplier development enhancements, as detailed in the U.S. Department of Defense contract award. Virginia class submarine underway during sea trials. "This contract modification funds important shipyard and supply chain work essential to achieving the necessary growth in output and supports our efforts to accelerate submarine delivery," said Mark Rayha, president of General Dynamics Electric Boat. "The ongoing support for the shipyards and our supply base from the Navy, Congress and the administration is appreciated and necessary for us to meet the Navy's current and future demand for submarines." Work will be performed in Groton, Connecticut (70%); Newport News, Virginia (15%); and Quonset Point, Rhode Island (15%) and is expected to be completed by 2031. 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.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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