General Dynamics Electric Boat awarded $1 billion contract modification for long lead time material for Virginia-class submarines

Rhea-AI Summary

General Dynamics Electric Boat (NYSE: GD) has secured a $1 billion undefinitized contract modification for purchasing long lead time materials for Virginia Class Block VI submarines. The contract supports the U.S. Navy's submarine production requirements.

Mark Rayha, president of General Dynamics Electric Boat, emphasized that this funding maintains the important demand signal needed for the submarine industrial base to invest in capacity and materials for increased production volume. The Virginia-class submarines are specifically designed for 21st-century mission requirements, including anti-submarine warfare, surface ship warfare, and special operations support.

General Dynamics Electric Boat, headquartered in Groton, Connecticut, serves as the prime contractor and lead design yard for the Virginia class, collaborating with HII's Newport News Shipbuilding. The company employs over 24,000 people and is part of General Dynamics, which reported revenue of $47.7 billion in 2024 with a global workforce exceeding 110,000.

Positive

• Secured $1 billion contract modification for Virginia-class submarines
• Strong position as prime contractor and lead design yard for Virginia-class program
• Substantial revenue of $47.7 billion in 2024
• Large workforce of 24,000+ at Electric Boat division and 110,000+ company-wide

Negative

• Contract is currently undefinitized, indicating final terms are not yet settled

GROTON, Conn., March 25, 2025 /PRNewswire/ -- General Dynamics Electric Boat, a business unit of General Dynamics (NYSE: GD), announced today it has been awarded a $1 billion undefinitized contract modification allowing Electric Boat to purchase long lead time materials for Virginia Class Block VI submarines as detailed in the U.S. Department of Defense contract announcement.

"This contract modification drives continuation of the crucial demand signal that the submarine industrial base needs to invest in the capacity and materials required to increase production volume," said Mark Rayha, president of General Dynamics Electric Boat. "Consistent funding for the supply base is essential to achieve the high-rate production the Navy requires of the entire submarine enterprise."

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 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.

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 Electric Boat

FAQ

What is the value and purpose of GD's new contract modification for Virginia-class submarines?

The $1 billion contract modification allows General Dynamics Electric Boat to purchase long lead time materials for Virginia Class Block VI submarines for the U.S. Navy.

How many employees does General Dynamics Electric Boat have in 2025?

General Dynamics Electric Boat employs more than 24,000 people at its Groton, Connecticut headquarters.

What was General Dynamics' (GD) total revenue in 2024?

General Dynamics generated $47.7 billion in revenue in 2024.

What are the main mission capabilities of the Virginia-class submarines being built by GD?

Virginia-class submarines are designed for anti-submarine warfare, surface ship warfare, and special operations support missions.

Who is General Dynamics Electric Boat partnering with to construct the Virginia-class submarines?

General Dynamics Electric Boat constructs the submarines in partnership with HII's Newport News Shipbuilding in Virginia.