General Dynamics scores $642 million deal for Virginia-class submarine work

October 1, 2025, by Fatima Bahtić

General Dynamics Electric Boat, a business unit of General Dynamics, has been awarded a $642 million contract modification to a previously awarded contract supporting Virginia-class submarine production.

General Dynamics Electric Boat designs, builds, repairs and modernizes nuclear submarines for the US Navy. This award is for a cost-plus-fixed-fee modification to a previously awarded contract for lead yard support and development studies and design efforts related to Virginia-class submarines.

The work will be carried out in Groton, Connecticut, as well as in McLeansville, North Carolina; Newport News, Virginia; and in Newport and Quonset, Rhode Island. It is expected to be completed by April 2026.

“This contract modification supports our efforts to deliver the submarines our Navy needs as quickly as possible,” said Mark Rayha, president of General Dynamics Electric Boat. \

“This funding allows us to continue our design and development efforts in order to sustain and extend our nation’s operational overmatch against any potential adversaries. With the support of the administration, the Navy and Congress, we are prepared to deliver the advantage to protect our sailors, our families and our freedom.”

Virginia class is a fleet of advanced fast-attack submarines designed for a variety of missions, including anti-submarine and anti-surface warfare, strike operations, intelligence collection, and mine warfare. Equipped with modern sensors and stealth features, these submarines are built to operate across both open-ocean and littoral environments.

In May this year. General Dynamics was awarded a total of $12.4 billion in contract modifications for the construction of two more Virginia-class submarines.