General Dynamics Bags $1.4B In Contract Modifications From US Navy

General Dynamics Corp GD subsidiary General Dynamics NASSCO has received $1.4 billion in U.S. Navy contract modifications for the construction of a sixth Expeditionary Sea Base ship (ESB 8) and two additional John Lewis-class fleet oilers (T-AO 211 and 212).
The award comes in addition to $600 million already received to procure long-lead time materials for the same ships.
The contract modification also offers an option for the Navy to procure an additional oiler, T-AO 213, bringing the total potential value to $2.7 billion for the four ships.
Construction of the four ships is scheduled to begin in 3Q23 and continue into 2027.
Price Action: GD shares closed lower by 0.16% at $228.79 on Friday.