Espey Mfg. & Electronics Corp. Announces New $29.5 Million Contract Award Supporting U.S. Navy’s Columbia Class Submarine Program
Espey Mfg. & Electronics Corp. (NYSE American: ESP) has secured a significant $29.5 million contract to manufacture electric power distribution panels for the U.S. Navy's Columbia class submarines. Selected by General Dynamics Electric Boat and the U.S. Navy, Espey will produce previously designed components for the next-generation ballistic missile submarine fleet. The contract covers deliveries through 2030 for 4 of the 12 planned submarines, which will be the largest ever built by the United States and feature a first-of-its-kind electric drive propulsion system. These submarines are designed to replace the existing Ohio class fleet and represent a top priority for the U.S. Navy.
Espey Mfg. & Electronics Corp. (NYSE American: ESP) ha ottenuto un importante contratto del valore di 29,5 milioni di dollari per la produzione di pannelli di distribuzione dell'energia elettrica per i sottomarini di classe Columbia della Marina degli Stati Uniti. Selezionata da General Dynamics Electric Boat e dalla Marina degli Stati Uniti, Espey produrrà componenti precedentemente progettati per la flotta di sottomarini a missili balistici di nuova generazione. Il contratto copre le consegne fino al 2030 per 4 dei 12 sottomarini previsti, che saranno i più grandi mai costruiti dagli Stati Uniti e presenteranno un sistema di propulsione elettrica all'avanguardia. Questi sottomarini sono progettati per sostituire la flotta esistente di classe Ohio e rappresentano una delle massime priorità per la Marina degli Stati Uniti.
Espey Mfg. & Electronics Corp. (NYSE American: ESP) ha asegurado un contrato significativo de 29.5 millones de dólares para fabricar paneles de distribución de energía eléctrica para los submarinos de clase Columbia de la Marina de los EE.UU. Seleccionada por General Dynamics Electric Boat y la Marina de los EE.UU., Espey producirá componentes previamente diseñados para la flota de submarinos de misiles balísticos de nueva generación. El contrato abarca entregas hasta 2030 para 4 de los 12 submarinos planeados, que serán los más grandes jamás construidos por Estados Unidos y contarán con un sistema de propulsión eléctrica innovador. Estos submarinos están diseñados para reemplazar la actual flota de clase Ohio y representan una de las máximas prioridades para la Marina de los EE.UU.
Espey Mfg. & Electronics Corp. (NYSE American: ESP)는 미국 해군의 콜럼비아급 잠수함을 위한 전력 배급 패널을 제조하기 위해 2,950만 달러 규모의 계약을 체결했습니다. 제너럴 다이내믹스 일렉트릭 보트와 미국 해군에 의해 선정된 Espey는 차세대 탄도 미사일 잠수함 함대를 위한 이전에 디자인된 부품을 생산할 것입니다. 이 계약은 2030년까지 12척 계획된 잠수함 중 4척의 납품을 포함하며, 미국 역사상 가장 큰 잠수함으로, 세계 최초의 전기 추진 시스템을 갖추고 있습니다. 이러한 잠수함은 기존의 오하이오급 함대를 대체하기 위해 설계되었으며, 미국 해군의 최우선 과제 중 하나로 간주됩니다.
Espey Mfg. & Electronics Corp. (NYSE American: ESP) a obtenu un contrat important de 29,5 millions de dollars pour fabriquer des panneaux de distribution d'énergie électrique pour les sous-marins de classe Columbia de la Marine américaine. Sélectionnée par General Dynamics Electric Boat et la Marine américaine, Espey produira des composants conçus antérieurement pour la flotte de sous-marins à missiles balistiques de nouvelle génération. Le contrat couvre les livraisons jusqu'en 2030 pour 4 des 12 sous-marins prévus, qui seront les plus grands jamais construits par les États-Unis et disposeront d'un système de propulsion électrique de première génération. Ces sous-marins sont conçus pour remplacer la flotte actuelle de classe Ohio et représentent une priorité absolue pour la Marine américaine.
Espey Mfg. & Electronics Corp. (NYSE American: ESP) hat einen bedeutenden Vertrag über 29,5 Millionen US-Dollar zur Herstellung von elektrischen Verteilungspaneelen für die Kolumbienklasse-U-Boote der US Navy gesichert. Ausgewählt von General Dynamics Electric Boat und der US Navy wird Espey zuvor entworfene Komponenten für die U-Boot-Flotte der nächsten Generation von ballistischen Raketen produzieren. Der Vertrag umfasst Lieferungen bis 2030 für 4 der 12 geplanten U-Boote, die die größten jemals in den Vereinigten Staaten gebauten U-Boote sein werden und ein erstklassiges elektrisches Antriebssystem besitzen werden. Diese U-Boote sind darauf ausgelegt, die bestehende Ohio-Klasse-Flotte zu ersetzen, und stellen eine der höchsten Prioritäten für die US Navy dar.
- Secured major $29.5 million contract for Columbia class submarines
- Contract extends through 2030, providing long-term revenue visibility
- Strategic position as supplier for top-priority U.S. Navy program
- Follow-on order validates existing relationship with General Dynamics Electric Boat
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Insights
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The contract's strategic importance lies in Espey's role in providing electric power distribution panels for the submarine's innovative electric drive propulsion system. This specialized technology requirement creates high barriers to entry and strengthens Espey's competitive moat in naval defense electronics. The follow-on nature of the order validates their execution capabilities and deep integration into the defense supply chain.
For investors, this represents a significant de-risking event, providing steady cash flow visibility and potential for margin expansion through economies of scale. The contract's extended delivery timeline through 2030 adds a predictable revenue stream to Espey's backlog, potentially improving their cost of capital and financial planning capabilities.
The Columbia-class submarine program marks a pivotal shift in naval warfare technology, with Espey's power distribution panels playing a important role in the revolutionary electric drive propulsion system. This technology eliminates the need for traditional mechanical gearing between the steam turbines and propulsion shaft, resulting in quieter operation - a critical advantage in submarine warfare.
The contract's technical scope suggests Espey has developed specialized expertise in manufacturing high-reliability power electronics that can withstand extreme underwater conditions. Their prior design work on these components indicates deep technical collaboration with General Dynamics Electric Boat, creating a strong competitive advantage for future naval programs.
The strategic timing of this award coincides with increased focus on Indo-Pacific naval capabilities, where advanced submarine technology is crucial. This positions Espey favorably for potential future contracts as geopolitical tensions drive naval modernization efforts.
SARATOGA SPRINGS, N.Y., Dec. 23, 2024 (GLOBE NEWSWIRE) -- Espey Mfg. & Electronics Corp. (NYSE American: ESP) announces new material contract.
The Company has been awarded a contract valued at
Mr. David O’Neil, President and CEO, commented,
We are proud to be a continued supplier to General Dynamics Electric Boat and the U.S. Navy on this very important program. This award would not be possible without the amazing dedication of our world class employees. Congratulations to them on a job well done. This follow-on order also supports our strategy focused on investing in programs that enable US military superiority.
Espey's primary business is the development, design, and production of specialized military and industrial power supplies/transformers. The Company can be found on the internet at www.espey.com.
For further information, contact Ms. Katrina Sparano at invest@espey.com.
This press release may contain certain statements that are "forward-looking statements" and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent the Company's current expectations or beliefs concerning future events. The matters covered by these statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made.
FAQ
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