General Dynamics NASSCO Secures $1.7 Billion Navy Oiler Contract
General Dynamics NASSCO, a prominent U.S. defense shipbuilder, has successfully secured a significant contract valued at $1.7 billion. This substantial award is designated for the construction of two additional John Lewis-class fleet oilers for the United States Navy. This pivotal agreement will fund the T-AO 215 and T-AO 216 vessels, significantly bolstering one of the Navy's most crucial replenishment initiatives.
Details of the Navy's Latest Oiler Acquisition
On November 11, 2025, General Dynamics NASSCO announced this landmark deal, which is set to enhance the Navy's logistical support capabilities. Dave Carver, the esteemed president of General Dynamics NASSCO, emphasized that this new contract is instrumental in maintaining consistent employment levels at the company's San Diego shipyard. He underscored the importance of steady production in averting future layoffs and aligning with the Navy's overarching strategic fleet objectives. The John Lewis-class oiler series holds profound significance for the company's dedicated employees, representing the longest continuous production run for the Navy at the shipyard. This program stands as a testament to the extensive experience and unwavering commitment of the workforce to national defense.
NASSCO's order book for shipbuilding continues to expand with this latest award. The company is already under contract for a substantial portion of the Navy's ambitious 20-ship program, with four vessels having already been delivered to the fleet. This new award is part of a multi-ship agreement that could potentially include an additional eight oilers, further solidifying NASSCO's role as a key supplier for the Navy.
The Navy initially selected NASSCO in 2016 for the design and delivery of the inaugural group of these next-generation oilers. This initial award was subsequently expanded to include three more ships, and a recent agreement in 2024 further increased the total number of vessels. These impressive 742-foot oilers are vital for enabling Navy combatants to refuel and resupply while at sea. Each vessel is engineered to transport over 160,000 barrels of fuel, carry dry cargo, and provide essential aviation support, all while cruising at an impressive speed of approximately 20 knots.
Since the first contract, four oilers have been successfully delivered, and five more hulls are currently under construction at NASSCO's southern California facility. Company engineers are actively engaged in preparing the designs and tooling necessary for the upcoming production phase, directly linked to this most recent contract award. General Dynamics supervises this extensive program as an integral part of its maritime division. As a leading defense contractor, General Dynamics employs more than 100,000 individuals across the globe and generates revenue through its diverse operations in shipbuilding, combat systems, aviation, and technology. Following the announcement, GD shares saw a modest increase of 0.17% to $350.10 in premarket trading.
This significant contract award highlights the continuous investment in naval capabilities and underscores the critical role played by shipbuilders like General Dynamics NASSCO in maintaining the strength and readiness of the U.S. Navy. The sustained demand for these advanced oilers ensures not only the operational effectiveness of the fleet but also the stability and growth of a vital domestic industry, fostering job security and technological advancement.