We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
General Dynamics' Unit Secures a Deal to Aid USS Ohio Class Submarines
Read MoreHide Full Article
General Dynamics Corporation’s (GD - Free Report) business unit, Electric Boat, recently clinched a contract involving USS Ohio Class submarines. The award has been offered by the Supervisor of Shipbuilding Conversion and Repair, Groton, CT.
Details of GD’s Deal
Valued at $29.9 million, the contract is expected to be completed by December 2026. Per the terms of the deal, General Dynamics will provide materials for the USS Ohio Class Drydock Seismic Stability System.
The work related to this deal will be executed in Vancouver, WA.
GD’s Growth Prospects
Rising military conflicts, terrorism and border disputes have driven nations to focus more on national security and investments in enhancing their submarine fleets. 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 the Mordor Intelligence firm to forecast a compound annual growth rate of 7.6% for the global submarine market during the 2025-2030 time period.
This is likely to benefit General Dynamics, a renowned manufacturer of submarines that provides planning yard support and associated solutions for these submarines. The company enjoys a steady stream of contracts for submarine manufacturing and associated services like the latest one. It is also responsible for all aspects of design and engineering and leads the construction of Columbia-class ballistic missiles and Virginia-class attack submarines.
At the end of the third quarter of 2024, General Dynamics witnessed a solid backlog of $92.63 billion.
Opportunities for Other Defense Players
Other defense companies that are likely to enjoy the perks of the expanding global submarine market have been discussed below:
Huntington Ingalls Industries (HII - Free Report) : Through its Newport News Shipbuilding division, HII is involved in producing the Columbia-class and Virginia-class submarines, two key assets of the U.S. Navy. The company provides fleet services to its submarines around the world, offering modernization, repair and installation services.
Huntington has a long-term (three to five years) earnings growth rate of 7.4%. The Zacks Consensus Estimate for HII’s 2025 sales indicates year-over-year growth of 4%.
BAE Systems (BAESY - Free Report) : It plays a vital role in the production of advanced submarines, particularly for the United Kingdom’s defense sector. BAE Systems is the primary manufacturer of the Astute-class nuclear submarines, which are integral to the Royal Navy's fleet.
BAE Systems has a long-term earnings growth rate of 11.1%. The Zacks Consensus Estimate for BAESY’s 2025 sales indicates year-over-year growth of 58.4%.
Northrop Grumman Corporation (NOC - Free Report) : It is a renowned provider of missile launch systems for naval submarines. The company manufactures Launcher Subsystem hardware to support the Columbia and Dreadnought common missile compartment program.
Northrop has a long-term earnings growth rate of 19%. The Zacks Consensus Estimate for NOC’s 2025 sales indicates year-over-year growth of 3.6%.
GD Stock Price Movement
Shares of General Dynamics have gained 1% in the past month compared with the industry’s 4% growth.
Image: Bigstock
General Dynamics' Unit Secures a Deal to Aid USS Ohio Class Submarines
General Dynamics Corporation’s (GD - Free Report) business unit, Electric Boat, recently clinched a contract involving USS Ohio Class submarines. The award has been offered by the Supervisor of Shipbuilding Conversion and Repair, Groton, CT.
Details of GD’s Deal
Valued at $29.9 million, the contract is expected to be completed by December 2026. Per the terms of the deal, General Dynamics will provide materials for the USS Ohio Class Drydock Seismic Stability System.
The work related to this deal will be executed in Vancouver, WA.
GD’s Growth Prospects
Rising military conflicts, terrorism and border disputes have driven nations to focus more on national security and investments in enhancing their submarine fleets. 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 the Mordor Intelligence firm to forecast a compound annual growth rate of 7.6% for the global submarine market during the 2025-2030 time period.
This is likely to benefit General Dynamics, a renowned manufacturer of submarines that provides planning yard support and associated solutions for these submarines. The company enjoys a steady stream of contracts for submarine manufacturing and associated services like the latest one. It is also responsible for all aspects of design and engineering and leads the construction of Columbia-class ballistic missiles and Virginia-class attack submarines.
At the end of the third quarter of 2024, General Dynamics witnessed a solid backlog of $92.63 billion.
Opportunities for Other Defense Players
Other defense companies that are likely to enjoy the perks of the expanding global submarine market have been discussed below:
Huntington Ingalls Industries (HII - Free Report) : Through its Newport News Shipbuilding division, HII is involved in producing the Columbia-class and Virginia-class submarines, two key assets of the U.S. Navy. The company provides fleet services to its submarines around the world, offering modernization, repair and installation services.
Huntington has a long-term (three to five years) earnings growth rate of 7.4%. The Zacks Consensus Estimate for HII’s 2025 sales indicates year-over-year growth of 4%.
BAE Systems (BAESY - Free Report) : It plays a vital role in the production of advanced submarines, particularly for the United Kingdom’s defense sector. BAE Systems is the primary manufacturer of the Astute-class nuclear submarines, which are integral to the Royal Navy's fleet.
BAE Systems has a long-term earnings growth rate of 11.1%. The Zacks Consensus Estimate for BAESY’s 2025 sales indicates year-over-year growth of 58.4%.
Northrop Grumman Corporation (NOC - Free Report) : It is a renowned provider of missile launch systems for naval submarines. The company manufactures Launcher Subsystem hardware to support the Columbia and Dreadnought common missile compartment program.
Northrop has a long-term earnings growth rate of 19%. The Zacks Consensus Estimate for NOC’s 2025 sales indicates year-over-year growth of 3.6%.
GD Stock Price Movement
Shares of General Dynamics have gained 1% in the past month compared with the industry’s 4% growth.
Image Source: Zacks Investment Research
GD’s Zacks Rank
GD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.