Marine systems’ revenue was up 22% in the fourth quarter, something that CEO Phebe Novakovic called a “remarkable growth story.”
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Virginia-based aerospace and defense contractor General Dynamics reported an increase in revenue in the fourth quarter, driven by its marine systems division, which includes Groton shipyard Electric Boat.
Marine systems’ revenue was up 22% in the quarter, something that CEO Phebe Novakovic called a “remarkable growth story.”
“All the shipyards were up, but the submarine programs at Electric Boat were the real drivers of this growth,” Novakovic said.
Overall, General Dynamics reported a profit of $1.14 billion, or $4.17 a share, compared with $4.15 a share, a year earlier. Revenue was at $14.38 billion, compared with $13.34 billion in the prior-year quarter.
For the full year of 2025, marine systems revenue was up 16.6%.
“At Electric Boat, we have made considerable investments over the last several years, and those investments have enabled a significant increase in output,” said General Dynamics President Danny Deep, citing a 13% increase in submarine tonnage production over 2024.
Executives said they’re still working to improve efficiency and workforce retention at Electric Boat, but the supply chain is the main drag on improvement.
“We have seen significant improvement in some areas, but we still have some suppliers in parts of the supply chain that are at risk,” Novakovic said, noting that there has been higher government investment in supply chain companies. “We need to focus and do more particularly with respect to sole-source suppliers where they are bottlenecks.”
General Dynamics says that around half of its total capital expenditure for 2026 will be deployed at Electric Boat.
Novakovic said the company is still awaiting details of new contracts on both the Virginia and Columbia class submarine programs.
Many of General Dynamic’s business units are particularly dependent on government activity, and executives noted that the examination of all contracts by the Department of Government Efficiency hurt growth and slowed contracting activity early in the year.
Novakovic was diplomatic about President Donald Trump’s recent executive order, which accuses defense contractors of prioritizing shareholder dividends and executive compensation over investment in manufacturing capacity.
“Our strategy over the last several years is aligned with the administration's commitment and intent to increase production,” Novakovic said.
