General Dynamics Wins $967M Contract Modification For Virginia-Class Submarines

General Dynamics Corporation GD won a $967 million contract modification from the U.S. Navy for Lead Yard Support and Development and Design efforts for Virginia-class submarines.

The contract to be performed in Connecticut, North Carolina, Virginia and Rhode Island is expected to be completed by October 2024.

Virginia-class fast-attack submarines are designed for the full range of 21st-century mission requirements, which comprises anti-submarine and surface ship warfare and special operations support.

"This contract award supports critical work to further advance the capability and superiority of the Virginia class submarine. We are proud to continue our tradition of delivering this state-of the-art platform that ensures the safety of our sailors and their continued dominance in the undersea domain," stated Kevin Graney, president of General Dynamics Electric Boat.

Yesterday, the company won an initial task contract worth $218 million for 155mm M1128 Load, Assemble, and Pack (LAP).

As of Q2, GD had a total estimated contract value, the sum of all backlog components, of $129.3 billion (+2.3% Y/Y).

Price Action: GD shares closed lower by 0.98% at $220.74 on Tuesday.