General Dynamics Electric Boat, a division of General Dynamics Corporation (NYSE: GD), has secured a $642 million contract modification from the U.S. Department of Defense.
The funding will support design and development activities tied to the Virginia-class submarine program, strengthening one of the Navy’s most critical undersea assets.
The cost-plus-fixed-fee contract amendment builds on a previous agreement (N00024-20-C-2120) and provides resources for lead yard services, development initiatives, and engineering support.
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This additional investment reflects the Navy’s commitment to accelerating submarine delivery schedules and advancing undersea warfare capabilities.
Mark Rayha, president of General Dynamics Electric Boat, emphasized that the award enables the company to sustain momentum in delivering new submarines.
“This contract modification supports our efforts to deliver the submarines our Navy needs as quickly as possible,” Rayha said.
He added that the funding ensures design and engineering work continues, helping maintain the U.S. Navy’s advantage over potential adversaries.
General Dynamics Electric Boat, based in Groton, Connecticut, is the Navy’s primary contractor for nuclear-powered submarine construction. The company employs more than 24,000 people and handles projects ranging from new vessel design to modernization and repair of active submarines.
The parent company, General Dynamics, is headquartered in Reston, Virginia, and operates globally across aerospace, shipbuilding, land systems, and defense technology.
The firm employs over 110,000 workers worldwide and generated $47.7 billion in revenue during 2024.
Defense contractors continue to benefit from Pentagon modernization priorities, with parallel opportunities seen for peers such as Huntington Ingalls Industries Inc. (NYSE: HII) and Lockheed Martin Corporation (NYSE: LMT).
According to Benzinga Pro, GD stock has gained over 10% in the past year. Investors can gain exposure to the stock via Pacer Funds Trust Pacer Solactive Whitney Future of Warfare ETF (BATS: FOWF).
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