General Dynamics Corporation (NYSE: GD), a maker of aerospace, marine, and military equipment, has been given a defense contract to support a key satellite network. Furthermore, the contract has the potential to significantly raise the ultimate cost. This proved a quotation driver, with GD shares fetching $226.51 in the trading on May 26.
General Dynamics Corporation (GD) and the US Department of Defense’s Space Development Agency (SDA) have agreed to a seven-year, $324.5 million deal. As part of the arrangement, GD will oversee SDA’s new low-orbit satellite constellation’s ground infrastructure and network operations.
Unlock the Hottest Top 10 Penny Stocks Today! Discover Now
Dive into the world of lucrative penny stocks with MarketClub's groundbreaking "Smart Scan" technology! Get an instant snapshot of the top 50 high volume stocks with a clear direction and outstanding liquidity - in other words, the strongest trending. To unlock this exclusive list, simply provide your first name, last name, and email for instant access.
Gain Access to Top 10 Penny Stocks Now!.
It will consist of more than a hundred satellites linked together by laser communication links. As a result, the constellation will be immune to radio interference and detection while yet allowing for high-speed data transfer.
Initially, satellites are intended to be placed in near-polar orbits, where strategic vehicles such as reconnaissance satellites or missile attack warning system components are normally found.
Because of the project’s high technical complexity, General Dynamics Corporation (GD)’s contract incorporates extension options that will very definitely be exercised.
Because a considerable quantity of labor and a wide range of duties are envisaged, General Dynamics and Iridium Communications jointly submitted a bid to the competition. As a result, only terrestrial communication stations must have a minimum of 14, while the principal contractor will oversee satellite launches and data traffic.
Launches will commence in two years, and SDA expects to pick two missile launch detection satellite makers in 2025. The end product should be a massive network of satellites for varied purposes that General Dynamics Corporation (GD) will administer. As a result, the firm will enter a lucrative market: demand for low-orbit communications is expected to grow over the next decade.
The stock of General Dynamics Corporation (GD) has gained 6.09 percent in the last week and -6.09 percent in the last month. It has gained 8.65 percent this year and 19.27 percent in the previous year.