General Dynamics GD is strengthening its position in electronic warfare as the U.S. Navy continues to modernize aircraft and invest in advanced technologies to counter evolving threats. Through its Mission Systems business, the company recently received a $184.3 million contract to manufacture and sustain Next Generation Electronics Attack Units (NGEAU) and provide future sustainment support for Advanced Capability Mission Computers.
The award covers full-rate production of NGEAU systems and sustainment services, providing General Dynamics with visibility into both near-term production and longer-term support opportunities. The contract is expected to run through September 2032, highlighting the extended demand for these capabilities.
Next-generation electronic attack systems are becoming increasingly important as military forces seek to disrupt adversary communications, radar and other electronic systems. Modernizing aircraft with advanced electronic warfare and mission-computing technologies should help improve survivability and mission effectiveness in contested environments.
General Dynamics’ established presence in naval electronic systems and its role in developing advanced mission technologies position it well to benefit from these modernization efforts. The company’s ability to support both production and sustainment should further strengthen its position across the lifecycle of these systems.
With the U.S. Navy prioritizing advanced electronic warfare, mission computing and aircraft modernization, General Dynamics is well-positioned to benefit from sustained demand for next-generation electronic attack capabilities and related support services.
Defense Stocks to Keep on the Radar
Other defense companies benefiting from rising demand for electronic warfare capabilities are discussed below:
L3Harris Technologies LHX: L3Harris continues to expand its electronic warfare portfolio. In 2026, the company demonstrated autonomous electronic warfare capabilities and continued advancing systems such as Next Generation Jammer-Low Band for the U.S. Navy.
Northrop Grumman NOC: Northrop Grumman develops electronic warfare, sensors and mission systems for U.S. and allied aircraft, supporting efforts to improve survivability and situational awareness in contested environments.
The Zacks Rundown for GD
Shares of GD have risen 8.8% in the past year against the industry’s 10.8% decline.
Image Source: Zacks Investment Research
The company's shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 1.67X compared with its industry’s average of 2.29X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GD’s 2026 and 2027 earnings has moved north over the past 60 days.
Image Source: Zacks Investment Research
GD stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).