
General Dynamics Marine Systems is a segment of General Dynamics Corporation (NYSE: GD), a publicly traded American aerospace and defense company headquartered in Reston, Virginia. The segment includes Electric Boat (nuclear submarines in Groton, Connecticut), Bath Iron Works (destroyers in Bath, Maine), and NASSCO (auxiliary ships in San Diego, California). Marine Systems generated $16.7 billion in revenue in 2025, making it General Dynamics' largest segment by revenue.
Parent Company
Founded
1995
Status
Publicly Traded
| Brand | Parent Company | Ownership Type |
|---|---|---|
| General Dynamics Marine Systems | General Dynamics | Brand division |
The history of General Dynamics Marine Systems is inseparable from the histories of its three principal operating units: Electric Boat, Bath Iron Works, and NASSCO, each of which has a distinct origin predating General Dynamics' formation.
General Dynamics Electric Boat traces its origins to the Electric Boat Company, founded in 1899 in New London, Connecticut, by Isaac Rice. The company was established to commercialize the submarine designs of John Philip Holland, whose Holland VI submarine had been purchased by the U.S. Navy in 1900 as the Navy's first modern submarine. Electric Boat built submarines for the U.S. Navy throughout both World Wars and became the Navy's primary submarine builder. The company was acquired by General Dynamics in 1952, becoming one of the founding units of the modern General Dynamics Corporation. Electric Boat's most significant historical achievement was the design and construction of USS Nautilus (SSN-571), the world's first nuclear-powered submarine, which was commissioned in September 1954. This achievement established Electric Boat as the preeminent nuclear submarine builder in the United States, a position it has maintained for more than seven decades.
Bath Iron Works was founded in 1884 in Bath, Maine, by Thomas Hyde, a Civil War veteran who recognized Bath's deep-water harbor and skilled shipbuilding workforce as ideal for naval construction. The company built its first Navy vessel in 1890 and has constructed ships for the U.S. Navy continuously since then, including destroyers, cruisers, and frigates across every major naval conflict of the 20th century. Bath Iron Works was acquired by General Dynamics in December 1995 for approximately million, becoming the surface combatant component of what would become the Marine Systems segment. Bath Iron Works is the primary builder of Arleigh Burke-class guided-missile destroyers, the backbone of the U.S. Navy's surface combatant fleet.
NASSCO (National Steel and Shipbuilding Company) was founded in 1905 in San Diego, California, and acquired by General Dynamics in 1998. NASSCO specializes in the construction of auxiliary and support ships for the U.S. Navy, including fleet replenishment oilers, expeditionary fast transports, and hospital ships, as well as commercial tankers and container ships for civilian operators. NASSCO's San Diego location on the Pacific coast provides strategic positioning for supporting U.S. Navy Pacific Fleet requirements.
General Dynamics formally organized these three shipbuilding operations into the Marine Systems segment in the mid-1990s following the Bath Iron Works acquisition. The segment has grown substantially since then, driven by the Virginia-class submarine program, which was initiated in 1998 as the successor to the Seawolf-class and has become the largest shipbuilding program in U.S. Navy history by unit count. The Virginia-class program is executed jointly by Electric Boat and Huntington Ingalls Industries' Newport News Shipbuilding division, with the two shipyards alternating as lead contractor on successive boats.
The Columbia-class ballistic missile submarine program, initiated in 2017 as the replacement for the aging Ohio-class fleet, represents the most strategically significant and expensive shipbuilding program in U.S. history. The Columbia class is designed to carry the Trident II D5 submarine-launched ballistic missile and will form the sea-based leg of the U.S. nuclear triad for decades. Electric Boat is the lead contractor for the Columbia-class program, with the lead boat, USS District of Columbia (SSBN-826), under construction as of early 2026. The program has faced schedule and cost challenges, with the Navy and Electric Boat working to address workforce and supply chain constraints that have affected production rates.
In fiscal year 2025, General Dynamics Marine Systems generated revenues of $16.7 billion, up 16.6% from $14.3 billion in 2024. Growth was driven by the Virginia-class and Columbia-class submarine programs. The segment's operating margin of 7.0% was pressured by the Columbia-class program's early production challenges, which are typical for complex first-of-class naval vessels.
What does General Dynamics own?
General Dynamics owns Gulfstream Aerospace (business jets), Jet Aviation (aircraft services), Electric Boat (nuclear submarines), Bath Iron Works (destroyers), NASSCO (commercial ships), General Dynamics Land Systems (armored vehicles), General Dynamics Ordnance and Tactical Systems (munitions), General Dynamics Information Technology (IT services), and General Dynamics Mission Systems (C5ISR solutions). These businesses operate across four reportable segments.
Is General Dynamics publicly traded?
Yes, General Dynamics trades on the New York Stock Exchange under the ticker symbol GD. The company has been publicly traded since its incorporation in 1954. Institutional investors including Vanguard Group, BlackRock, and State Street hold the majority of shares. No single shareholder owns a controlling stake.
What is General Dynamics' annual revenue?
For fiscal year 2025 (ended December 31, 2025), General Dynamics reported $52.6 billion in revenue, up 10.1% from $47.7 billion in FY2024. Net earnings were $4.2 billion, with diluted EPS of $15.45. The company's backlog reached $118 billion at year-end 2025, providing multi-year revenue visibility.
Who is the CEO of General Dynamics?
Phebe Novakovic has served as Chairman and CEO of General Dynamics since 2013. She joined the company in 2001 and previously served as CFO and COO. Before her corporate career, she worked at the Central Intelligence Agency and the Department of Defense. Novakovic is in her 12th year as CEO and was named to Fortune's Most Powerful Women list in 2025.
What are General Dynamics' main business segments?
General Dynamics operates four segments: Aerospace ($13.1 billion in FY2025, 25% of revenue), Marine Systems ($16.7 billion, 32%), Combat Systems ($9.2 billion, 17%), and Technologies ($13.5 billion, 26%). Marine Systems is the largest segment by revenue, driven by nuclear submarine production for the U.S. Navy.
Does General Dynamics pay a dividend?
Yes, General Dynamics has paid a dividend for over 25 consecutive years. The board determines any increase in March each year. However, a January 2026 executive order by President Trump created uncertainty by prohibiting defense contractors from paying dividends until they can "produce a superior product, on time and on budget." CEO Novakovic confirmed the company's commitment to the dividend despite the order.
How many people does General Dynamics employ?
General Dynamics employs more than 110,000 people worldwide as of 2025. The company's workforce is concentrated in the United States, with significant operations in Virginia, Maine, Connecticut, California, and Michigan. International operations include facilities in Canada, the United Kingdom, Germany, Austria, Spain, and Australia.
General Dynamics Marine Systems operates under General Dynamics' corporate environmental management framework. More than 50 company sites operate under ISO 14001 certification for environmental management systems. The company has decreased carbon intensity by 32% since 2019, with a 4.4% year-over-year reduction in emissions per dollar of revenue while increasing manufacturing capacity. General Dynamics has committed to reducing greenhouse gas emissions by 40% by 2034, with carbon neutrality targeted before 2060.
Each Marine Systems facility maintains Environmental, Health and Safety (EHS) programs to ensure compliance with applicable laws and regulations. The segment integrates environmental considerations into submarine design, procurement, production, and facilities management. Manufacturing operations involving heavy metals, welding, and industrial processes require ongoing environmental compliance at the federal and state level.
The segment operates under General Dynamics' Ethos framework, emphasizing integrity, respect, and ethical conduct in business dealings. All defense contracts are subject to strict compliance with government contracting regulations, international trade laws including ITAR export controls, and defense industry ethical standards. General Dynamics maintains a supply chain of more than 35,400 suppliers, including over 12,000 small business partners.
In 2025, General Dynamics Electric Boat was awarded $12.4 billion in contract modifications for construction of two fiscal year 2024 Virginia-class submarines. The Navy also awarded a $1.85 billion contract modification for long-lead-time materials and preliminary construction for submarine production. These contract awards reflect continued confidence in Electric Boat's technical capabilities and program execution.
Electric Boat's design and construction of USS Nautilus (SSN-571), the world's first nuclear-powered submarine, commissioned in September 1954, represents one of the most significant technical accomplishments in naval engineering history. The company has maintained its position as the preeminent nuclear submarine builder in the United States for more than seven decades.
Bath Iron Works has been acknowledged for its construction of Arleigh Burke-class destroyers, the backbone of the U.S. Navy's surface combatant fleet. The shipyard has delivered multiple destroyers on schedule and continues to compete for new construction contracts.
Marine Systems facilities maintain ISO 14001 certification for environmental management and ISO quality certifications for military manufacturing. The segment's shipbuilding facilities have received recognition for quality and performance in delivering complex naval vessels.
General Dynamics Marine Systems has faced several significant controversies throughout its history, primarily related to environmental compliance, contract management, and labor relations.
In January 2008, Electric Boat signed a consent order with the state of Connecticut and paid $75,000 to settle violations relating to the discharge of pollutants into the Thames River. Earlier environmental incidents included a $13,600 fine from the U.S. Environmental Protection Agency in 1998 for improper disposal of PCB-contaminated clothing, a $105,000 penalty in 1992 for hazardous waste violations at an Arizona facility, and a $50,000 fine in 1992 for a hazardous waste spill at a San Diego plant.
In April 2008, a Congressional committee blamed poor management by both the Defense Department and General Dynamics for billions of dollars in cost overruns and delays in a Marine Corps tank program. In August 2008, General Dynamics agreed to pay $4 million to settle federal charges that a subsidiary fraudulently billed the Pentagon for defective parts used in Navy aircraft and submarines.
Marine Systems facilities experienced significant labor disputes during the 1980s and 1990s. In 1983-84, more than 1,000 draftsmen at Electric Boat remained on strike for 14 months. In 1988, approximately 10,000 Electric Boat workers struck for more than 100 days over wage disputes. Bath Iron Works workers struck for eight weeks in 2000. Workers at NASSCO in San Diego went 16 years without a collective bargaining agreement, leading to a lawsuit that resulted in the company agreeing to pay workers $14 million in back wages.
In December 2011, General Dynamics and Siemens Corp. settled a lawsuit brought by former factory workers at a Florida plant who alleged that the companies negligently dumped the solvent TCE into drinking water, causing cancer cases. Settlement terms were not made public.
General Dynamics was also named as a defendant in Scharpf et al. v. General Dynamics Corp., a federal antitrust class action lawsuit filed in October 2023 alleging that General Dynamics and other major shipbuilders participated in an informal agreement not to recruit each other's naval architects and marine engineers, suppressing wages. The case underwent significant legal proceedings in 2025 including a Fourth Circuit Court of Appeals decision and en banc review order.
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