General Dynamics Unit Secures $988M US Navy Contract

• Contract structure includes a one-year base period, four one-year options, and one six-month option, allowing flexibility for extended engagement
• Modernization will cover critical systems for command, control, and surveillance technologies to enhance readiness of naval forces
• Scope encompasses multiple vessel types including guided missile ships, aircraft carriers, and Coast Guard vessels

General Dynamics Secures $988M U.S. Navy Modernization Contract

General Dynamics announced Monday that its information technology subsidiary, General Dynamics Information Technology (GDIT), has been awarded a $988 million contract by the U.S. Navy to modernize fleet systems. The contract was officially awarded in December 2025.

Contract Structure:

The agreement includes a one-year base period with four one-year option periods and an additional six-month option, potentially extending the contract duration to 5.5 years if all options are exercised.

Scope of Work:

GDIT will upgrade critical command, control, and surveillance technologies to enhance naval force readiness. The modernization effort will cover multiple vessel types, including guided missile ships, aircraft carriers, and U.S. Coast Guard vessels.

Market Implications:

This contract reinforces General Dynamics' position as a key defense contractor and demonstrates continued U.S. military investment in fleet modernization and technological capabilities. The nearly $1 billion award strengthens GDIT's defense IT portfolio and provides significant revenue visibility through the mid-2020s.

The contract aligns with broader U.S. defense priorities focused on maintaining technological superiority and fleet readiness amid evolving global security challenges. For General Dynamics investors, this represents continued stable revenue from government contracts in the aerospace and defense sector.

Key Players:

• General Dynamics Corporation (primary contractor)
• General Dynamics Information Technology/GDIT (executing unit)
• U.S. Navy and Coast Guard (clients)

The announcement comes as defense contractors continue to benefit from sustained government spending on military modernization programs.