The shipyard said it has seen significant improvements in the pace of deliveries from supply chain companies.
General Dynamics says it saw more than 10% revenue growth at its Marine Systems unit in the second quarter, driven in part by construction of Columbia and Virginia-class submarines at Groton’s Electric Boat yard.
Overall, the defense giant saw adjusted earnings of $4.24 per share, beating analysts’ expectations.
Revenue increased 8.1% over the prior-year quarter to $14.1 billion.
Executives say they’re focused on increasing build rates at EB and other shipyards.
“We’re trying to get to two Virginia-class and one Columbia-class in the early 2030s timeframe,” General Dynamics President Danny Deep said. “We’re on that path, and we’re actually where we expect to be at this point in the process.”
Deep said that the shipyard has seen significant improvements in the pace of deliveries from supply chain companies — an issue that has held back construction in the past.
“There are still some challenging areas where we have single sources of supply,” he said. “Generally, the supply chain is improving, and we’re counting on it to continue to improve.”
CEO Phebe Novakovic said General Dynamics is still waiting for the latest round of contracts from the Navy for Block VI Virginia Class submarines, something she said will help to stabilize the industrial base and ensure that the yard can order long-lead-time materials for future submarine builds.
