Science Applications International Corp. (SAIC) has won a $242 million, five‑year contract from the U.S. Navy’s Naval Undersea Warfare Center Division in Newport to operate, maintain and modernize the Propulsion Test Facility (PTF). The award, announced on November 24 2025, expands SAIC’s long‑standing partnership with the Navy’s undersea weapons enterprise and provides a steady, multi‑year revenue stream for the company’s defense portfolio.
The PTF complex houses specialized testing facilities for torpedo components, submarine systems and propulsion technologies, including the Deep Depth Test Facility that evaluates Mk 48 torpedo performance. Under the new contract, SAIC will deliver engineering, technical, testing, prototyping, systems integration and digital‑engineering services to keep the facility capable of supporting emerging Navy research and development needs. The contract also supports testing and production for Mk 48 and Mk 54 torpedoes, unmanned underwater vehicles and submarine sensors, underscoring the facility’s critical role in undersea warfare.
Financially, the contract translates to an average annual revenue of roughly $48 million, adding a predictable, high‑margin stream to SAIC’s defense business. The win aligns with the company’s strategic pivot toward higher‑margin mission and enterprise IT work, a shift that has already driven a 9.5 % adjusted EBITDA margin in fiscal 2025 and a 9.4 % margin in the second quarter of fiscal 2025. The new contract therefore reinforces SAIC’s ability to secure fixed‑price, high‑margin contracts and supports its broader goal of expanding its defense revenue base.
Management emphasized the long‑term nature of the partnership, noting that “Supporting the Propulsion Test Facility and the Navy’s torpedo enterprise as a mission integrator has given SAIC the opportunity to deliver innovation directly where our customers need it most. For more than a decade, we’ve partnered closely with the PTF to help it grow and modernize, strengthening our own capabilities to better serve the Navy.” The comment highlights SAIC’s deep technical expertise and its commitment to sustaining the Navy’s advanced undersea weapons advantage.
The contract positions SAIC for future opportunities in undersea and other advanced defense domains. By securing a five‑year, high‑value award, the company strengthens its relationship with a key Navy customer and demonstrates its capacity to manage complex, mission‑critical facilities. This win also signals continued confidence from the Navy in SAIC’s technical capabilities, reinforcing the company’s trajectory toward higher‑margin, fixed‑price defense work.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.