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General Dynamics (GD) Wins $80.1M Deal for Surface Ships
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General Dynamics Corporation’s (GD - Free Report) business unit, National Steel and Shipbuilding Co (“NASSCO”), recently clinched an $80.1 million modification contract involving surface ships. The contract has been awarded by the Naval Sea Systems Command, Washington, D.C.
Details of the Deal
Per the deal, General Dynamics will provide complex and non-complex emergent and continuous maintenance services on surface ships in the Pacific Northwest. These ships, for which GD will also offer Chief of Naval Operations, are surface combatant (DDG and CG)-class ships and amphibious (LSD, LPD, LHA and LHD)-class ships.
The work related to this contract will be executed in Everett, WA. The contract is expected to be completed by November 2023.
What’s Favoring General Dynamics?
Nations are strengthening their defense capabilities to protect against a rising threat environment. This has increased spending on Navy ships that play a critical role in sea missions. Such factors are contributing to the growth of companies that manufacture ships for the Navy.
General Dynamics is one of the leading designers and builders of surface combatants and is also involved in auxiliary ship design and construction for the U.S. Navy. The company also provides maintenance, modernization and lifecycle support services for Navy ships.
Such expertise in manufacturing military ships and providing maintenance support services has resulted in a continuous flow of orders for General Dynamics, like the latest one. This enhances its revenue generation prospects.
Growth Prospects & Peer Moves
Per a report from the Fortune Business Insights firm, the global naval vessel and surface combatant market is projected to witness a CAGR of 5.6% during the 2023-2030 period. This trend should favor General Dynamics’ growth as the company enjoys an established position in manufacturing naval vessels and surface combatants for the U.S. Navy.
Other defense majors poised to benefit from the expanding submarine market areBAE Systems (BAESY - Free Report) , Lockheed Martin (LMT - Free Report) and Huntington Ingalls Industries (HII - Free Report) .
BAE Systems designs, builds, commissions, repairs and supports a full range of complex naval ships, from offshore patrol vessels to aircraft carriers, giving customers the capability to carry out extensive naval operations. Its Queen Elizabeth Class Aircraft Carriers are the largest warships ever constructed in the United Kingdom.
In October 2023, BAE Systems announced a new shipbuild hall that will transform and enhance shipbuilding in Glasgow.
Lockheed Martin manufactures Littoral Combat Ships (“LCS”). Its freedom-variant, LCS USS Nantucket (LCS 27), is a resilient, flexible warship designed to encounter the evolving missions of the U.S. Navy. LCS 27 is particularly designed to conduct close-to-shore missions.
In September 2023, LMT clinched an $81.3 million modification contract to provide class design support, integrated data and product model environment support for LCS.
Huntington Ingalls’ business segment designs and constructs non-nuclear ships for the U.S. Navy and U.S. Coast Guard, including amphibious assault ships, expeditionary warfare ships, surface combatants and national security cutters.
In October 2023, HII unveiled its third America-class amphibious assault ship, Bougainville (LHA 8), for the U.S. Navy and Marine Corps partners.
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General Dynamics (GD) Wins $80.1M Deal for Surface Ships
General Dynamics Corporation’s (GD - Free Report) business unit, National Steel and Shipbuilding Co (“NASSCO”), recently clinched an $80.1 million modification contract involving surface ships. The contract has been awarded by the Naval Sea Systems Command, Washington, D.C.
Details of the Deal
Per the deal, General Dynamics will provide complex and non-complex emergent and continuous maintenance services on surface ships in the Pacific Northwest. These ships, for which GD will also offer Chief of Naval Operations, are surface combatant (DDG and CG)-class ships and amphibious (LSD, LPD, LHA and LHD)-class ships.
The work related to this contract will be executed in Everett, WA. The contract is expected to be completed by November 2023.
What’s Favoring General Dynamics?
Nations are strengthening their defense capabilities to protect against a rising threat environment. This has increased spending on Navy ships that play a critical role in sea missions. Such factors are contributing to the growth of companies that manufacture ships for the Navy.
General Dynamics is one of the leading designers and builders of surface combatants and is also involved in auxiliary ship design and construction for the U.S. Navy. The company also provides maintenance, modernization and lifecycle support services for Navy ships.
Such expertise in manufacturing military ships and providing maintenance support services has resulted in a continuous flow of orders for General Dynamics, like the latest one. This enhances its revenue generation prospects.
Growth Prospects & Peer Moves
Per a report from the Fortune Business Insights firm, the global naval vessel and surface combatant market is projected to witness a CAGR of 5.6% during the 2023-2030 period. This trend should favor General Dynamics’ growth as the company enjoys an established position in manufacturing naval vessels and surface combatants for the U.S. Navy.
Other defense majors poised to benefit from the expanding submarine market areBAE Systems (BAESY - Free Report) , Lockheed Martin (LMT - Free Report) and Huntington Ingalls Industries (HII - Free Report) .
BAE Systems designs, builds, commissions, repairs and supports a full range of complex naval ships, from offshore patrol vessels to aircraft carriers, giving customers the capability to carry out extensive naval operations. Its Queen Elizabeth Class Aircraft Carriers are the largest warships ever constructed in the United Kingdom.
In October 2023, BAE Systems announced a new shipbuild hall that will transform and enhance shipbuilding in Glasgow.
Lockheed Martin manufactures Littoral Combat Ships (“LCS”). Its freedom-variant, LCS USS Nantucket (LCS 27), is a resilient, flexible warship designed to encounter the evolving missions of the U.S. Navy. LCS 27 is particularly designed to conduct close-to-shore missions.
In September 2023, LMT clinched an $81.3 million modification contract to provide class design support, integrated data and product model environment support for LCS.
Huntington Ingalls’ business segment designs and constructs non-nuclear ships for the U.S. Navy and U.S. Coast Guard, including amphibious assault ships, expeditionary warfare ships, surface combatants and national security cutters.
In October 2023, HII unveiled its third America-class amphibious assault ship, Bougainville (LHA 8), for the U.S. Navy and Marine Corps partners.