General Dynamics, which operates the General Dynamics Electric Boat division that is headquartered in Groton, reports second-quarter 2025 operating earnings of $1.3 billion on revenue of $13 billion. Compared with the year-ago quarter, revenue increased 8.9%, and operating earnings increased 12.9%
“During the first half of the year, each of our four segments achieved growth in revenue and earnings,” said Phebe Novakovic, chairman and CEO of General Dynamics. “Our strong cash flow and healthy backlog position us well to have a good second half.”
During the second quarter of the year, the company paid $402 million in dividends, invested $198 million in capital expenditures, and reduced total debt by $897 million. The company ended the quarter with $8.7 billion in total debt and $1.5 billion in cash and equivalents on hand.
General Dynamics is headquartered in Reston, Virginia. It employs more than 110,000 people worldwide and generated $47.7 billion in revenue in 2024. General Dynamics Electric Boat designs, builds, repairs and modernizes nuclear submarines for the U.S. It employs more than 24,000 people. Electric Boat vessels include Virginia-class nuclear-powered attack submarines.
General Dynamics Electric Boat was awarded a $1.85 billion contract modification to a previously awarded contract from the federal government supporting submarine production.
“This contract modification allows for the acquisition of critical material and components for Virginia-class submarines that require substantial lead time to manufacture and deliver. It sends a continued demand signal, supporting supplier investment in the capacity and materials needed to achieve our required production volume,” said Mark Rayha, president of General Dynamics Electric Boat. “Consistent funding and support such as this contract modification is essential for the shipyards to achieve the high-rate production of submarines the Navy needs.”
Electric Boat a few weeks ago acquired the former Macy’s department store location in Waterford. Electric Boat has been acquiring real estate to support its increased submarine production for the U.S. Navy.
“We are delighted to expand our footprint in Southeastern Connecticut,” said Rayha. “Over the past two years, we successfully worked with the Navy, Congress and the administration to secure funds that … allow for significant additional investments in capacity, shipyard processes and systems. This acquisition is another example of effectively leveraging those funds to move important support functions out of the shipyard and maximize the production value of our waterfront footprint.”
The Waterford property will provide space to expand engineering, training and laboratory work in support of Columbia- and Virginia-class submarine production. Approximately 700 Electric Boat employees are expected to be at work by early 2027 at the 121,000-square-foot former Macy’s building, which sits on a 7.4-acre plot of land on Route 85 in Waterford.
