General Dynamics Corporation GD recently secured a modification contract valued at $878 million involving the Virginia Class submarines. Per the terms of the modification contract, the company will provide additional materials to support the construction of two Virginia Class submarines, SSN 812 and SSN 813.
 
The award has been provided by the Naval Sea Systems Command, Washington, D.C. The work under this contract will be executed across various locations, like Chesapeake, VA and EL Cajon, CA. The project is expected to be completed by September 2033.

What’s Favoring GD?

With countries worldwide enhancing their defense capabilities, spending on advanced military systems, including submarines, has been rapidly rising. To this end, it is imperative to mention that General Dynamics is a renowned manufacturer of submarines and also offers planning yard support, as well as associated engineering and technical solutions for these submarines. As a result, the company continues to receive a steady flow of contracts for its advanced submarines from the Pentagon and U.S. allies, with the latest contract win being a prime example.

Notably, Virginia Class submarines are designed to meet modern mission requirements, such as anti-submarine and surface warfare, special operations and intelligence gathering. These submarines perform well in both shallow coastal waters and the open ocean, providing critical intelligence and surveillance. Their stealthy design and ability to connect with other military systems make them a vital part of the U.S. Navy, supporting national security efforts.

Such notable features of the aforementioned submarine are likely to have been boosting its demand, which is further evident from the latest contract win.

GD’s Growth Prospects

Rising military conflicts, terrorism and border disputes have driven nations across the globe to focus more on national security, with investments in enhancing their submarine fleet. This surge is fueled by the increasing demand for advanced technologies like stealth capabilities, underwater surveillance and long-range strike systems, as well as the growing complexity of modern naval warfare.

This is likely to have prompted Mordor Intelligence to forecast a compound annual growth rate of 7.6% for the global submarine market during the 2024-2029 period.

This is likely to benefit General Dynamics, a prominent contractor in the submarine market. Its Electric boat business division is responsible for all aspects of design and engineering and leads the construction of Columbia-class ballistic missiles and Virginia-class attack submarines.