Jim McAleese, founder and principal at McAleese & Associates and a 2019 Wash100 winner, wrote in the report that General Dynamics’ information technology business reported $2.2B in Q2 revenue, while the company’s combat systems segment saw its sales increase 8 percent to $1.7B.
The Falls Church, Va.-based aerospace and defense contractor reported a 7 percent increase in Q2 sales within its marine systems business and an 11 percent growth within its mission systems business.
McAleese noted that General Dynamics CEO and a 2019 Wash100 winner Phebe Novakovic discussed during the earnings call on July 24 the company’s mission systems business, the Virginia-class Block IV and Block V submarine programs and the U.S. Navy’s $96B Columbia-class SSBN submarine initiative.
“Columbia is a national priority…I have no doubt that, as a national priority, funding will be made available for it… There is an imperative for the Navy to recapitalize its ships…There is a consensus in Washington…that understands that we need ships…and we need to replace the undersea leg of the [nuclear] deterrent…I am comfortable that the Department of Defense, working with the Congress, will find appropriate mechanisms,” Novakovic said.
General Dynamics posted $67.7B in total backlog at the end of the quarter with a total estimated contract value of $101.9B. Notable awards in the quarter include a $495M contract for industrial base development and expansion for the U.S. Navy’s Columbia-class submarine program and $360M worth of contracts for intelligence services.