Knick of Time: Upgrade to Buy As Marine Bridges This OG to Growth

Research evidence excerpt

Knick of Time: Upgrade to Buy As Marine Bridges This OG to Growth

General Dynamics Corp. (GD)

Equity Research

June 11, 2026

a) Electric Boat The Primary Driver of Marine Growth on

Nuclear Subs

Background: Electric Boat (EB) is the prime contractor and lead shipyard on all Navy nuclear-powered

submarine programs. The business is responsible for all aspects of design and engineering and

leads the construction of both Columbia-class ballistic-missile submarines and Virginia-class attack

submarines. Established in 1899, Electric Boat has been supplying nuclear-powered Virginia-class

fast-attack submarines to the Navy for 20 years, and is the prime contractor for the Columbia-

class ballistic missile submarine program which will replace the aging Ohio class of ballistic missile

submarines. Electric Boat also performs submarine maintenance and modernization, engineering and

design services, fleet support for all classes of submarines and concept and technology development.

GD has invested ~$4BB in EB over the last 10 yrs including $1BB for workforce development, hiring

and training and $3BB for facility modernization & expansion w/ another $4BB planned for the next

five yrs to support growth on Virginia- and Columbia-class.

Exhibit 7 - GD Invested $4BB+ Over the Past 10 Years, Expected to Invest the Same $4BB+ In Next 5 Years

$1,400 $4BB+ in 5 Years

$1,200

$1,000

$MM $4BB+ in 10 Years $800

in

$600

$400 Investments

$200

Marine $-

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Marine Capex EB Hiring & Training

.

Source: Company data, Jefferies estimates

Labor - Average Tenor of Employee Base Increasing: GD has made progress on the labor front w/

hours earned at Electric Boat +29% y-o-y in Q1:26 on the Columbia-class program. The Electric Boat