GDIT Awarded $988 Million Contract to Modernize Navy C5ISR Systems
General Dynamics Information Technology (NYSE:GD) was awarded a $988 million Ship and Air C5ISR Systems Support (SACSS) contract in December to modernize U.S. Navy C5ISR systems.
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Rhea-AI Summary
General Dynamics Information Technology (NYSE:GD) was awarded a $988 million Ship and Air C5ISR Systems Support (SACSS) contract in December to modernize U.S. Navy C5ISR systems. The award includes a one-year base period, four one-year options and a six-month option, and covers integration, engineering, procurement, logistics and installation across all classes of surface combatant ships, aircraft, Coast Guard vessels and shore stations. The work aims to improve operational effectiveness and readiness by upgrading sensing, communications and mission systems. General Dynamics reported $47.7 billion revenue in 2024 and employs over 110,000 worldwide.
Positive
- Contract value of $988 million with options
- Scope covers all surface combatant ships and related platforms
- Includes integration, engineering, procurement, logistics and installation
Negative
- Only a one-year base; majority value depends on option exercises
- Long-term revenue tied to future option awards rather than guaranteed term
Details
News Market Reaction – GD
On Jan 13, the first trading day after this news, GD closed 0.65% above the previous close.
Data tracked by StockTitan Argus for the Jan 13 session.
Key Figures
- Navy C5ISR contract value
- $988 million
- Ship and Air C5ISR Systems Support contract awarded in December
- Base period
- 1 year
- Initial base period for the C5ISR contract
- Option periods
- 4 one-year options
- Additional option years on the C5ISR contract
- Additional option
- 6-month option
- Final extension option on the C5ISR contract
- Sailors trained
- more than 100,000
- Training support services for U.S. and allied sailors
- Employees
- more than 110,000
- Global General Dynamics workforce
- Revenue
- $47.7 billion
- General Dynamics revenue in 2024
Historical Context
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AWS Global Defense Partner of the Year award highlighting tactical edge AI work.
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$285M Virginia cybersecurity services contract expanding state and local footprint.
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Tri-party MOA with DSEC and Samsung Heavy Industries on ship design and automation.
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Regular quarterly dividend of $1.50 per share with clear payment timetable.
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Expanded AI and cloud collaboration with Google Public Sector for U.S. government.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
c5isr technical
electronic warfare technical
artificial intelligence/machine learning technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Company will integrate advanced systems across all surface combatant ships to stay ahead of emerging threats
Under the contract, GDIT will modernize and integrate C5ISR systems to enhance the operational effectiveness and readiness of naval forces. The company will provide integration, engineering, procurement, logistics and installation services onboard all classes of surface combatant ships, including guided missile ships, aircraft carriers, Coast Guard vessels, manned and unmanned aircraft and shore stations. GDIT will upgrade these systems efficiently to enable the Navy to keep its current vessels operational and ensure mission continuity.
"C5ISR systems are foundational to how our Navy senses, communicates and fights in the modern battlespace," said Brian Sheridan, GDIT senior vice president for Defense. "We look forward to continuing to deliver innovative solutions to ensure these vital systems operate at peak performance and enable our warfighters to stay ahead of emerging threats."
GDIT has decades of experience delivering mission-critical services to the Navy. The company supports the development of advanced electronic warfare technologies for airborne platforms, provides training support services for more than 100,000
GDIT is a business unit of General Dynamics, 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
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SOURCE General Dynamics Information Technology
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