Espey Mfg. & Electronics Corp. Announces New $29.5 Million Contract Award Supporting U.S. Navy’s Columbia Class Submarine Program

Rhea-AI Summary

Espey Mfg. & Electronics Corp. (NYSE American: ESP) has secured a significant $29.5 million contract to manufacture electric power distribution panels for the U.S. Navy's Columbia class submarines. Selected by General Dynamics Electric Boat and the U.S. Navy, Espey will produce previously designed components for the next-generation ballistic missile submarine fleet. The contract covers deliveries through 2030 for 4 of the 12 planned submarines, which will be the largest ever built by the United States and feature a first-of-its-kind electric drive propulsion system. These submarines are designed to replace the existing Ohio class fleet and represent a top priority for the U.S. Navy.

Positive

• Secured major $29.5 million contract for Columbia class submarines
• Contract extends through 2030, providing long-term revenue visibility
• Strategic position as supplier for top-priority U.S. Navy program
• Follow-on order validates existing relationship with General Dynamics Electric Boat

Negative

• None.

SARATOGA SPRINGS, N.Y., Dec. 23, 2024 (GLOBE NEWSWIRE) -- Espey Mfg. & Electronics Corp. (NYSE American: ESP) announces new material contract.

The Company has been awarded a contract valued at $29.5 million, when fully funded, to provide electric power distribution panels for the U.S. Navy’s Columbia class submarines. Espey was chosen by General Dynamics Electric Boat and the U.S. Navy to manufacture components previously designed by Espey for the next-generation ballistic missile submarine fleet. The Columbia class submarine is a top priority for the U.S. Navy and was designed to replace the fleet of Ohio class submarines. The Columbia class submarines will be the largest ever built by the United States and rely on a “first-of-its-kind” electric drive propulsion system. Deliveries under the contract are expected through calendar year 2030 for the next 4 of 12 planned ships.

Mr. David O’Neil, President and CEO, commented,

We are proud to be a continued supplier to General Dynamics Electric Boat and the U.S. Navy on this very important program. This award would not be possible without the amazing dedication of our world class employees. Congratulations to them on a job well done. This follow-on order also supports our strategy focused on investing in programs that enable US military superiority.

Espey's primary business is the development, design, and production of specialized military and industrial power supplies/transformers. The Company can be found on the internet at www.espey.com.

For further information, contact Ms. Katrina Sparano at invest@espey.com.

This press release may contain certain statements that are "forward-looking statements" and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent the Company's current expectations or beliefs concerning future events. The matters covered by these statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made.

FAQ

What is the value of Espey's new Columbia class submarine contract?

Espey (ESP) has been awarded a $29.5 million contract to provide electric power distribution panels for the U.S. Navy's Columbia class submarines.

How long will Espey's Columbia class submarine contract last?

The contract deliveries are expected to continue through calendar year 2030, covering components for 4 of the 12 planned submarines.

What components will Espey (ESP) manufacture for the Columbia class submarines?

Espey will manufacture electric power distribution panels that were previously designed by the company for the next-generation ballistic missile submarine fleet.

How many Columbia class submarines will be built under Espey's current contract?

The current contract covers components for 4 out of the 12 planned Columbia class submarines.

What makes the Columbia class submarines unique in U.S. Navy history?

The Columbia class submarines will be the largest ever built by the United States and will feature a first-of-its-kind electric drive propulsion system.