General Dynamics Electric Boat Awarded $12 Billion Contract Modification for Virginia-Class Submarines

Rhea-AI Summary

General Dynamics Electric Boat has secured a $12.4 billion contract modification to build two Virginia-class submarines for fiscal year 2024. The contract includes options that could increase the total value to $17.2 billion.

The agreement encompasses investments to enhance shipyard productivity and workforce support. Electric Boat, working with the Navy, Congress, and administration, has obtained funding to increase nuclear-powered vessel workforce wages and improve facility capabilities.

The Virginia-class submarines are specifically designed for 21st-century missions, including anti-submarine warfare, surface ship warfare, and special operations support. Electric Boat serves as the prime contractor and lead design yard, collaborating with HII's Newport News Shipbuilding for construction.

Based in Groton, Connecticut, Electric Boat 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

• $12.4B contract modification secured for Virginia-class submarines
• Additional options could increase total contract value to $17.2B
• Secured funding for workforce wage increases
• Prime contractor and lead design yard position for Virginia-class submarines
• Strong 2024 revenue of $47.7B with 110,000+ global employees

Negative

• Heavy dependence on government contracts and defense spending
• Requires significant capital investment in shipyard improvements
• Shared construction arrangement with HII potentially impacts margins

GROTON, Conn., April 30, 2025 /PRNewswire/ -- General Dynamics Electric Boat, a business unit of General Dynamics (NYSE: GD), announced today it has been awarded a total of $12.4 billion in contract modifications for construction of two fiscal year 2024 Virginia-class submarines. Additionally, the award funds investments to improve productivity at the shipyards and workforce support as detailed in the Department of Defense contract award announcement (https://www.defense.gov/News/Contracts/Contract/Article/4170827/). This contract includes options which, if exercised, would bring the cumulative value to $17.2 billion.

"Over the past two years, we successfully worked with the Navy, Congress and the administration to secure funds that enable us to increase wages for the nuclear-powered vessel workforce and allow for significant additional investments in capacity, shipyard processes and systems," said Mark Rayha, president of General Dynamics Electric Boat. "This contract modification validates the unique and important role submarines and submarine shipbuilders play in our national defense."

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 submarine series 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.

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 about General Dynamics is available at www.gd.com.

 

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SOURCE General Dynamics

FAQ

How much is General Dynamics (GD) Virginia-class submarine contract worth in 2025?

General Dynamics Electric Boat was awarded a $12.4 billion contract modification for two Virginia-class submarines in fiscal year 2024, with options that could increase the total value to $17.2 billion.

What will the 2025 submarine contract funds be used for by General Dynamics (GD)?

The contract funds will be used for constructing two Virginia-class submarines, improving shipyard productivity, supporting the workforce through increased wages, and enhancing capacity and shipyard processes.

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

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

What is General Dynamics (GD) annual revenue in 2024?

General Dynamics generated $47.7 billion in revenue in 2024, with operations across aerospace, defense, ship construction, and technology sectors.

Who partners with General Dynamics Electric Boat to build Virginia-class submarines?

General Dynamics Electric Boat constructs Virginia-class submarines in a teaming arrangement with HII's Newport News Shipbuilding in Virginia, with Electric Boat serving as the prime contractor and lead design yard.