SAIC Awarded $102M Contract to Support U.S. Navy Torpedo Production

Rhea-AI Summary

Science Applications International Corp. (NYSE: SAIC) has secured a $102.5 million contract from the U.S. Navy to enhance its support for the MK 48 Mod 7 Heavyweight Torpedo program. This contract builds on a previous $1.1 billion production contract, illustrating SAIC's long-term involvement in defense initiatives. Under this new agreement, SAIC will produce and deliver components including the MK 48 Mod 7 Torpedo Afterbody Tailcones and MK29 Mod 0 Warshot Fuel Tanks to the U.S. Navy and foreign partners via Foreign Military Sales (FMS) programs. The firm also provides facilities and resources necessary for testing and delivery. With an annual revenue of approximately $7.7 billion and a workforce of 25,000, SAIC continues to solidify its role as a key technology integrator for the defense sector.

Positive

• Awarded a $102.5 million contract, expanding support for U.S. Navy's MK 48 Mod 7 Heavyweight Torpedo program.
• Contract builds on a previous $1.1 billion contract, indicating ongoing business growth.
• SAIC will produce and deliver critical components, showcasing its manufacturing capabilities.

Negative

• None.

Contract expands support of MK 48 production

RESTON, Va.--(BUSINESS WIRE)-- Science Applications International Corp. (NYSE: SAIC) has been awarded a $102.5 million contract by the U.S. Navy to continue supporting the MK 48 Mod 7 Heavyweight Torpedo program. This is a firm-fixed-price and cost-plus-fixed fee modification to a previously awarded $1.1 billion torpedo production contract.

“SAIC has a long history of supporting the U.S. Navy, notably our work providing the dominant undersea weapons it requires,” said Bob Genter, president of Defense and Civilian Sector at SAIC. “We are honored by the Navy’s confidence in SAIC, and proud to expand our support of the MK 48 program.”

Under the new contract option, SAIC will produce, assemble, test and deliver the U.S. Navy’s MK 48 Mod 7 Torpedo Afterbody Tailcones (AB/TC) and MK29 Mod 0 Warshot Fuel Tanks to the U.S. Navy and foreign partners through implemented Foreign Military Sales (FMS) programs.

Currently, SAIC also provides all necessary facilities, resources and management to meet the contract’s integration, production, test and delivery requirements.

To learn more about SAIC’s work with the Department of Defense, visit www.saic.com/defense.

About SAIC

SAIC® is a premier Fortune 500® technology integrator driving our nation’s technology transformation. Our robust portfolio of offerings across the defense, space, civilian and intelligence markets includes secure high-end solutions in engineering, digital, artificial intelligence and mission solutions. Using our expertise and understanding of existing and emerging technologies, we integrate the best components from our own portfolio and our partner ecosystem to deliver innovative, effective and efficient solutions that are critical to achieving our customers' missions.

We are approximately 25,000 strong; driven by mission, united by purpose, and inspired by opportunities. SAIC is an Equal Opportunity Employer, fostering a culture of diversity, equity and inclusion , which is core to our values and important to attract and retain exceptional talent. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately $7.7 billion. For more information, visit saic.com. For ongoing news, please visit our newsroom.

Forward-Looking Statements

Certain statements in this release contain or are based on “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “guidance,” and similar words or phrases. Forward-looking statements in this release may include, among others, estimates of future revenues, operating income, earnings, earnings per share, charges, total contract value, backlog, outstanding shares and cash flows, as well as statements about future dividends, share repurchases and other capital deployment plans. Such statements are not guarantees of future performance and involve risk, uncertainties and assumptions, and actual results may differ materially from the guidance and other forward-looking statements made in this release as a result of various factors. Risks, uncertainties and assumptions that could cause or contribute to these material differences include those discussed in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Legal Proceedings” sections of our Annual Report on Form 10-K, as updated in any subsequent Quarterly Reports on Form 10-Q and other filings with the SEC, which may be viewed or obtained through the Investor Relations section of our website at saic.com or on the SEC’s website at sec.gov. Due to such risks, uncertainties and assumptions you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. SAIC expressly disclaims any duty to update any forward-looking statement provided in this release to reflect subsequent events, actual results or changes in SAIC’s expectations. SAIC also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230410005015/en/

Thais Hanson

703.676.8215 | publicrelations@saic.com

Source: Science Applications International Corp.

FAQ

What is the value of the new contract awarded to SAIC?

SAIC has been awarded a contract valued at $102.5 million by the U.S. Navy.

What program is SAIC supporting with the new contract?

SAIC is supporting the MK 48 Mod 7 Heavyweight Torpedo program.

How does the new contract relate to previous contracts for SAIC?

The new contract is part of an ongoing relationship, building on a previously awarded $1.1 billion contract.

What components will SAIC produce under the new contract?

SAIC will produce the MK 48 Mod 7 Torpedo Afterbody Tailcones and MK29 Mod 0 Warshot Fuel Tanks.

What is SAIC's annual revenue?

SAIC has annual revenues of approximately $7.7 billion.