General Dynamics’ Marine Systems unit announced a $15.38 billion contract modification from the U.S. Navy that extends through June 2035, adding a substantial amount to the company’s submarine backlog.
The modification supports submarine construction and maintenance for both Virginia‑class and Columbia‑class vessels, reinforcing GD’s position in the high‑margin submarine market and underscoring its role in the Navy’s nuclear deterrent program.
The award expands the Marine Systems backlog, which stood at $4.82 billion in Q4 2025, and is expected to generate incremental revenue and margin over the life of the contract. The segment’s operating earnings grew 72.5% year‑over‑year to $345 million in that quarter, reflecting strong execution and pricing power.
The contract also addresses supply‑chain challenges that have pressured submarine delivery schedules. CEO Phebe Novakovic noted, “The supply chain is not getting better at a fast enough rate as we had hoped,” and added, “Costs are increasing — fact of life costs or economic realities — and funding is going to have to adjust to these fundamental changes in input, and that will need to happen over time.”
By securing this long‑term, high‑value award, General Dynamics strengthens its competitive position against rivals such as Huntington Ingalls Industries and Electric Boat, and positions the company to capture future opportunities in the U.S. Navy’s submarine programs.
The contract’s value of $15.38 billion, slightly lower than the rounded $15.4 billion reported in earlier coverage, aligns with official Navy documentation and underscores the precision of GD’s backlog management.
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