General Dynamics chief predicts combat vehicle growth in Europe

By Ethan Sterenfeld / July 30, 2021 at 12:30 PM

Increasing demand in Europe could allow General Dynamics' combat vehicle business to grow in coming years, even if Army budgets remain flat, the company's chief executive said July 28.

“Outside the United States, demand is increasing, primarily driven by Europe,” Phebe Novakovic told analysts when asked about the likelihood of stagnant or declining Army budgets. “That is focused and centered on our combat vehicles, both our wheeled vehicles as well as our tracked vehicles, most specifically the Abrams main battle tank.”

Poland is a potential new customer for the Abrams, especially given the danger posed by Russia, Novakovic said. Reports this month have said that Poland asked to buy up to 250 M1A2 SEPv3 Abrams tanks, the newest model.

The Stryker platform could also grow domestically if the Army continues to expand the number of missions it fulfills within the force, she said. The Army chose to mount its new short-range air defense capabilities on Stryker vehicles.

General Dynamics reported $9.2 billion in revenue for its most recent quarter, down 0.5% from the same period a year earlier. Revenue increased 8.3% in its combat systems unit, which includes the Abrams and Stryker combat vehicles, up to $1.9 billion.

Across all divisions, General Dynamics recorded net income of $737 million for the quarter, up 15% from the same period a year earlier.