Groton-based submarine manufacturer Electric Boat sees 'exceptional revenue growth' in late 2025
CT Post
By Paul Schott
January 29, 2026
Submarine manufacturer General Dynamics Electric Boat played a key role in significant revenue and profit increases reported Wednesday by its parent company.
General Dynamics’ Marine Systems unit produced fourth-quarter revenues of about $4.8 billion, up 22% year over year, while the division’s operating earnings jumped 73% to $345 million, according to the company’s new earnings report. Marine Systems includes Groton-headquartered Electric Boat, which designs and builds submarines for the U.S. Navy and has about 16,000 employees in Connecticut.
For all of 2025, Marine Systems’ revenues increased 17% to $16.7 billion, while its operating earnings rose 26% to $1.2 billion. Among Reston, Virginia-headquartered General Dynamics four main units, Marine Systems was the largest source of revenue. General Dynamics’ full-year revenues totaled $52.6 billion, up 10% from 2024, while its profits grew 11% to $4.2 billion.
“Once again, our shipbuilding group had exceptional revenue growth,” General Dynamics CEO and Chairman Phebe Novakovic said during an earnings call on Wednesday morning. “All the shipyards were up, but the submarine programs at Electric Boat were the real drivers of this growth.”
Greater efficiency at Electric Boat is a key growth factor, according to Novakovic and General Dynamics President Danny Deep.
“We have seen demonstrable increases in productivity and throughput at our shipyards,” Deep said in the earnings call. “At Electric Boat, as you all know, we have made considerable investments over the last several years, and those investments have enabled a significant increase in output. One key measure of output is submarine tonnage produced, and Electric Boat is up 13% over last year.”
Electric Boat notched several milestones in 2025. Among them, the USS Iowa, a Virginia-class fast-attack submarine that is stationed at Naval Submarine Base New London, was commissioned last April. Last month, Electric Boat delivered to the Navy another Virginia-class ship, the future USS Idaho. And last October, the company held a christening ceremony for yet another Virginia-class vessel, the future USS Utah.
General Dynamics officials also outlined their efforts to bolster Marine Systems’ supply chain.
“The quality still remains high,” Novakovic said of the marine business' suppliers. “It’s simply really about the constraints that they have in capacity and getting their throughput up. … That will be the next big step in improving our productivity and throughput, and the ability to further accelerate delivery to the customer.”
Meanwhile, Electric Boat is expanding its footprint in Connecticut to support its goals for increased production. Last year, it acquired the Crystal Mall property in Waterford. Company officials have said that they expect approximately 4,000 to 5,000 employees to eventually work there, with a move-in of mid-2027 at the earliest. They have also said they would work with the mall’s tenants on “next steps.”
As for collective-bargaining developments in 2025, the company’s marine drafters, a design-focused group of about 2,500 employees, approved a new, five-year contract. Contract negotiations between Electric Boat and the UAW union, which represents the marine drafters, had been arduous. But the union and the company finally reached a tentative agreement on the night of May 18, averting a strike that would have started the next day.
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