General Dynamics: Polish Abrams sales could take two years to finalize

By Ethan Sterenfeld / October 27, 2021 at 11:58 AM

A sale of roughly 250 M1A2 SEPv3 Abrams tanks to Poland might not be finalized for another two years, General Dynamics' chief executive officer said today.

The two-year timeline would allow the foreign military sales process and other details to be completed, Phebe Novakovic told analysts on the company's quarterly earnings call. The SEPv3 is the newest version of the Abrams tank, which the U.S. Army is currently purchasing.

"This is a powerful system for the Poles to have," she said. At the last earnings call, she highlighted the possibility for increased tank sales in Europe as NATO allies deal with a resurgent Russian threat.

General Dynamics sees potential mid-term combat vehicle sales in the Czech Republic, Denmark, Romania, Switzerland and Spain, Novakovic said. There are other potential growth opportunities in the Middle East.

"In the near term, we are stable internationally, but opportunity-rich in the intermediate period," she said.

Domestic combat vehicle demand is stable, and the company is following the federal budget process, Novakovic said.

Potential domestic combat vehicle growth comes from the Mobile Protected Firepower, a new light tank the Army is buying for infantry units, she said. The Army is expected to choose either General Dynamics or BAE Systems to build the MPF in the third quarter of fiscal year 2022.

General Dynamics reported $9.6 billion in revenue for the quarter ending Sept. 30, up 1.5% from the same period a year earlier. The company had net income of $860 million.

The combat systems unit, which includes the Abrams and Stryker programs, had $1.7 billion in revenue, down 3.1% percent from the same period a year earlier. Operating earnings in the unit increased 2.2%, to $276 million.

The marine systems unit, which builds submarines and destroyers for the Navy, had $2.6 billion in revenue, up 9.6% from a year earlier. Operating earnings in the unit increased by 2.7%, to $229 million.