General Dynamics Electric Boat awarded $642 million for Virginia-class submarine work

Rhea-AI Summary

General Dynamics (NYSE: GD) has secured a $642 million contract modification through its Electric Boat division for Virginia-class submarine work. The cost-plus-fixed-fee modification extends a previous contract (N00024-20-C-2120) focused on Lead Yard Support and Development Studies and Design efforts for the U.S. Navy's submarine fleet.

Electric Boat, headquartered in Groton, Connecticut, employs over 24,000 people and specializes in designing, building, repairing, and modernizing nuclear submarines. The parent company, General Dynamics, reported $47.7 billion in revenue for 2024 and maintains a global workforce exceeding 110,000 employees.

Positive

• Secured significant $642 million contract modification for submarine work
• Strong revenue performance with $47.7 billion reported in 2024
• Large workforce of 24,000+ at Electric Boat division, indicating robust operational capacity
• Continued government support from administration, Navy, and Congress

Negative

• Cost-plus-fixed-fee structure may limit profit margin potential

News Market Reaction

+0.55%

1 alert

+0.55% News Effect

On the day this news was published, GD gained 0.55%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

GROTON, Conn., Sept. 26, 2025 /PRNewswire/ -- General Dynamics Electric Boat, a business unit of General Dynamics (NYSE: GD), announced today it has been awarded a $642 million contract modification to a previously awarded contract supporting submarine production. This modification is for a cost-plus-fixed-fee modification to a previously awarded contract (N00024-20-C-2120) for Lead Yard Support and Development Studies and Design efforts related to Virginia-class submarines, as detailed in the U.S. Department of War contract award.

"This contract modification supports our efforts to deliver the submarines our Navy needs as quickly as possible," said Mark Rayha, president of General Dynamics Electric Boat. "This funding allows us to continue our design and development efforts in order to sustain and extend our nation's operational overmatch against any potential adversaries. With the support of the administration, the Navy and Congress, we are prepared to deliver the advantage to protect our sailors, our families and our freedom."

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

FAQ

What is the value of General Dynamics' new submarine contract modification in 2025?

General Dynamics Electric Boat received a $642 million contract modification for Virginia-class submarine work, focusing on Lead Yard Support and Development Studies and Design efforts.

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 was General Dynamics' (GD) revenue in 2024?

General Dynamics reported $47.7 billion in revenue for the fiscal year 2024.

What type of contract did General Dynamics receive for the submarine work?

The contract is a cost-plus-fixed-fee modification to an existing contract (N00024-20-C-2120) for Virginia-class submarines.

How many people does General Dynamics employ globally in 2025?

General Dynamics employs more than 110,000 people worldwide across its various divisions and operations.