Deep made the comments during General Dynamics’ second-quarter 2026 earnings call. He declined to disclose the current Virginia-class construction rate, saying the company typically leaves that information to the U.S. Navy.
Management pointed to higher output and improving material availability at Electric Boat. Deep said earned hours on the Columbia-class programme increased significantly from both the year-earlier quarter and the first quarter of 2026.
Earned hours on Columbia rose 37% in the first half from the same period in 2025. Deliveries of sequence-critical material increased 65% in the second quarter from a year earlier, supporting the company’s efforts to accelerate construction.
Deep said the pace and cadence of supply-chain deliveries had improved significantly. General Dynamics continues to face constraints in areas where large, complex components depend on single-source suppliers, but management expects the broader recovery to continue.
Chairman and Chief Executive Officer Phebe Novakovic said Marine Systems’ quarterly revenue growth of 10.4% was led by the Columbia- and Virginia-class programmes. Operating earnings increased 17.5%, while the segment’s operating margin improved by 40 basis points.
Novakovic attributed the performance to measurable productivity gains across the company’s shipyards. She said General Dynamics had made significant investments in those facilities, particularly Electric Boat, and would continue spending to support additional demand.
The company also reported progress in recruiting and retaining the workforce needed to support higher shipbuilding rates. Deep said the shipyards were meeting their resource requirements, while Novakovic credited the Navy with assisting those workforce efforts.
Management expects Marine Systems’ margin improvement to continue gradually as throughput rises, production-floor performance strengthens and supply conditions improve. Deep described the expected progress as a steady process tied to continued execution.
Chief Financial Officer Kim Kuryea said General Dynamics would increase investment during the second half of 2026, particularly at its shipyards. The spending is intended to accelerate production and prepare the company to meet future demand.
Deep said Marine Systems should continue to grow because of the volume of work still to be completed, although the pace may moderate as the business expands. He said the company did not expect a significant slowdown, describing the softer second-half growth profile as a timing effect linked to material received earlier in the year and now being installed.
