General Dynamics Wins $642M Deal to Support Virginia Class Submarines

General Dynamics Corp. GD business unit, Electric Boat, has secured a modification to a previously awarded contract, a $642 million deal for Lead Yard Support and Development Studies and Design efforts related to Virginia-class submarines. The deal was offered by the Naval Sea Systems Command, Washington, D.C. The majority of the work related to this deal will be executed in Groton, CT, and is anticipated to be completed by April 2026.GD’s Involvement in Virginia-Class Submarine ProgramGeneral Dynamics’ Electric Boat division serves as the primary contractor and lead shipyard for all U.S. Navy nuclear-powered submarine programs. This division oversees the entire design and engineering process, as well as the construction of Virginia-class attack submarines. It also manages the Virginia-class’ combat systems and weapon launchers.Virginia-class fast attack submarines are among the world’s most advanced. They are engineered from the keel up to handle the full spectrum of 21st-century missions, including anti-submarine and surface warfare, as well as support for special operations.Such sophisticated features must have driven significant demand for the company's Virginia-class submarines, as reflected in recent contract wins.Growth PotentialThe Rising demand for advanced submarine technologies such as stealth, underwater monitoring and long-range strike capabilities, along with the increasing complexity of modern naval warfare, is driving growth in the submarine market.This has likely led Mordor Intelligence to project a CAGR of 4.17% for the submarine market during the 2025-2030 period. Such strong growth trends indicate ample opportunities for GD, a prominent contractor in the submarine market.Considering the solid growth opportunities of the submarine market, other defense primes like BAE Systems plc BAESY, Northrop Grumman Corporation NOC and Huntington Ingalls Industries HII, with a strong presence in this space, should also benefit.BAE Systems has been a trusted supplier to the U.S. Navy’s undersea fleet for over 30 years. The company is building the Dreadnought-class submarine to uphold the United Kingdom’s continuous at-sea nuclear deterrent.BAESY boasts a long-term (three to five years) earnings growth rate of 14.5%. The Zacks Consensus Estimate for 2025 sales stands at $40.80 billion, which calls for an increase of 63.4%.Northrop Grumman is a leading supplier of missile launch systems for naval submarines. The company continues manufacturing Launcher Subsystem hardware to support the Columbia and Dreadnought common missile compartment programs.NOC boasts a long-term earnings growth rate of 3.9%. The Zacks Consensus Estimate for 2025 sales stands at $42.15 billion, which calls for an increase of 2.7%.Huntington Ingalls delivers global fleet support for submarines, including modernization, repairs and installation services. Its Newport News Shipbuilding division designs and constructs nuclear-powered submarines for the U.S. Navy.HII has a long-term earnings growth rate of 11.9%. The Zacks Consensus Estimate for 2025 sales stands at $11.97 billion, which calls for an increase of 3.7%.GD Stock’s Price MovementIn the past three months, shares of General Dynamics have risen 13.3% compared with the industry’s 10.4% growth.Image Source: Zacks Investment ResearchGD’s Zacks RankGeneral Dynamics currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Northrop Grumman Corporation (NOC): Free Stock Analysis Report General Dynamics Corporation (GD): Free Stock Analysis Report Bae Systems PLC (BAESY): Free Stock Analysis Report Huntington Ingalls Industries, Inc. (HII): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks