General Dynamics Electric Boat awarded $1 billion contract modification for long lead time material for Virginia-class submarines
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.
General Dynamics Electric Boat (NYSE: GD) ha ottenuto una modifica contrattuale indefinita del valore di 1 miliardo di dollari per l'acquisto di materiali a lungo termine per i sottomarini della classe Virginia Block VI. Il contratto supporta i requisiti di produzione di sottomarini della Marina degli Stati Uniti.
Mark Rayha, presidente di General Dynamics Electric Boat, ha sottolineato che questo finanziamento mantiene il segnale di domanda importante necessario affinché la base industriale dei sottomarini investa in capacità e materiali per un aumento del volume di produzione. I sottomarini della classe Virginia sono progettati specificamente per i requisiti delle missioni del 21° secolo, inclusi la guerra anti-sottomarino, la guerra contro le navi di superficie e il supporto alle operazioni speciali.
General Dynamics Electric Boat, con sede a Groton, Connecticut, funge da appaltatore principale e cantiere di design principale per la classe Virginia, collaborando con il Newport News Shipbuilding di HII. L'azienda impiega oltre 24.000 persone ed è parte di General Dynamics, che ha registrato un fatturato di 47,7 miliardi di dollari nel 2024 con una forza lavoro globale che supera le 110.000 unità.
General Dynamics Electric Boat (NYSE: GD) ha asegurado una modificación de contrato indefinido por un valor de 1 mil millones de dólares para la compra de materiales de largo plazo para los submarinos de la clase Virginia Block VI. El contrato apoya los requisitos de producción de submarinos de la Marina de los EE. UU.
Mark Rayha, presidente de General Dynamics Electric Boat, enfatizó que este financiamiento mantiene la señal de demanda importante necesaria para que la base industrial de submarinos invierta en capacidad y materiales para aumentar el volumen de producción. Los submarinos de la clase Virginia están diseñados específicamente para los requisitos de misión del siglo XXI, incluyendo guerra antisubmarina, guerra contra buques de superficie y apoyo a operaciones especiales.
General Dynamics Electric Boat, con sede en Groton, Connecticut, actúa como contratista principal y astillero de diseño líder para la clase Virginia, colaborando con Newport News Shipbuilding de HII. La empresa emplea a más de 24,000 personas y forma parte de General Dynamics, que reportó ingresos de 47.7 mil millones de dólares en 2024 con una fuerza laboral global que supera las 110,000.
제너럴 다이내믹스 일렉트릭 보트 (NYSE: GD)는 버지니아급 블록 VI 잠수함을 위한 장기 자재 구매를 위한 10억 달러의 비확정 계약 수정안을 확보했습니다. 이 계약은 미국 해군의 잠수함 생산 요구 사항을 지원합니다.
제너럴 다이내믹스 일렉트릭 보트의 사장인 마크 레이하(Mark Rayha)는 이 자금이 잠수함 산업 기반이 생산량 증가를 위해 용량과 자재에 투자하는 데 필요한 중요한 수요 신호를 유지한다고 강조했습니다. 버지니아급 잠수함은 21세기 임무 요구 사항에 맞게 특별히 설계되었으며, 여기에는 잠수함 전쟁, 수상함 전쟁 및 특수 작전 지원이 포함됩니다.
코네티컷주 그로턴에 본사를 두고 있는 제너럴 다이내믹스 일렉트릭 보트는 버지니아급의 주요 계약자이자 주요 설계 조선소로서 HII의 뉴포트 뉴스 조선소와 협력하고 있습니다. 이 회사는 24,000명 이상의 직원을 고용하고 있으며, 제너럴 다이내믹스의 일원으로 2024년에 477억 달러의 수익을 보고했으며, 전 세계적으로 110,000명 이상의 인력을 보유하고 있습니다.
General Dynamics Electric Boat (NYSE: GD) a obtenu une modification de contrat indéfinie d'une valeur de 1 milliard de dollars pour l'achat de matériaux à long terme pour les sous-marins de la classe Virginia Block VI. Le contrat soutient les exigences de production de sous-marins de la Marine américaine.
Mark Rayha, président de General Dynamics Electric Boat, a souligné que ce financement maintient le signal de demande important nécessaire pour que la base industrielle des sous-marins investisse dans des capacités et des matériaux pour un volume de production accru. Les sous-marins de la classe Virginia sont spécialement conçus pour répondre aux exigences des missions du 21e siècle, y compris la guerre anti-sous-marine, la guerre contre les navires de surface et le soutien aux opérations spéciales.
General Dynamics Electric Boat, dont le siège est à Groton, Connecticut, agit en tant qu'entrepreneur principal et chantier de conception principal pour la classe Virginia, en collaboration avec Newport News Shipbuilding de HII. L'entreprise emploie plus de 24 000 personnes et fait partie de General Dynamics, qui a déclaré un chiffre d'affaires de 47,7 milliards de dollars en 2024 avec une main-d'œuvre mondiale dépassant les 110 000.
General Dynamics Electric Boat (NYSE: GD) hat eine unbestimmte Vertragsänderung im Wert von 1 Milliarde Dollar zur Beschaffung von Langzeitmaterialien für die U-Boote der Virginia-Klasse Block VI gesichert. Der Vertrag unterstützt die Produktionsanforderungen der U.S. Navy.
Mark Rayha, Präsident von General Dynamics Electric Boat, betonte, dass diese Finanzierung das wichtige Nachfragesignal aufrechterhält, das erforderlich ist, damit die U-Boot-Industrie in Kapazitäten und Materialien für ein erhöhtes Produktionsvolumen investiert. Die U-Boote der Virginia-Klasse sind speziell für die Anforderungen von Missionen im 21. Jahrhundert konzipiert, einschließlich U-Boot-Kriegsführung, Kriegsführung gegen Überwasserschiffe und Unterstützung von Spezialoperationen.
General Dynamics Electric Boat mit Sitz in Groton, Connecticut, fungiert als Hauptauftragnehmer und führendes Designwerft für die Virginia-Klasse und arbeitet mit HII's Newport News Shipbuilding zusammen. Das Unternehmen beschäftigt über 24.000 Mitarbeiter und ist Teil von General Dynamics, das im Jahr 2024 einen Umsatz von 47,7 Milliarden Dollar meldete und eine globale Belegschaft von über 110.000 hat.
- 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
- Contract is currently undefinitized, indicating final terms are not yet settled
Insights
The $1 billion contract modification awarded to General Dynamics Electric Boat represents a significant revenue event that strengthens GD's already substantial naval systems backlog. This funding specifically targets long lead time materials for Virginia-class Block VI submarines, ensuring production continuity for one of the Navy's most critical platforms.
The timing is particularly strategic as it provides the "demand signal" that Mark Rayha highlights as essential for the submarine industrial base. This funding stability enables suppliers to confidently invest in expanded capacity—addressing a critical bottleneck in submarine production that has challenged the Navy's fleet expansion goals.
For investors, this contract carries several important implications. First, it reinforces GD's position as the prime contractor for the Virginia-class program, which represents a multi-decade revenue stream. Second, as an undefinitized contract modification, it allows work to begin immediately while final terms are negotiated, accelerating material acquisition timelines. Finally, it suggests continued momentum for the Block VI submarines, which typically have
In context of GD's
This contract modification addresses a crucial operational challenge in the submarine industrial base. Long lead time materials—including specialized steel alloys, propulsion components, and weapons systems interfaces—require procurement 3-5 years before final submarine assembly. By funding these materials now, the Navy ensures production capacity remains synchronized with fleet requirements.
The Virginia-class submarine program represents the backbone of the Navy's undersea warfare capability. These vessels are designed for multi-mission operations including anti-submarine warfare, strike warfare, special operations deployment, and intelligence gathering. The Block VI submarines will likely incorporate incremental improvements over previous blocks, maintaining technological superiority.
The "teaming arrangement" between Electric Boat and Newport News Shipbuilding mentioned in the release reflects the specialized nature of submarine construction. This partnership distributes manufacturing across two shipyards—with each yard alternating construction of bow/stern sections while completing final assembly on alternate vessels. This approach maximizes production efficiency while maintaining two capable submarine construction facilities.
Electric Boat's 24,000 employees represent a significant specialized workforce that cannot be quickly expanded. This contract helps maintain stable employment while potentially signaling future workforce growth. The submarine industrial base requires sustained, predictable funding to maintain specialized capabilities that would otherwise atrophy—making this contract essential for both operational readiness and industrial capacity preservation.
"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
General Dynamics Electric Boat designs, builds, repairs and modernizes nuclear submarines for the
Headquartered in
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SOURCE General Dynamics Electric Boat
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