BAE Systems Awarded $100M Contract to Repair Navy Warships

The defense contractor will perform maintenance and upgrades on two vessels at its San Diego shipyard.

Jan. 31, 2026 at 7:55am

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BAE Systems, a major defense contractor, has been awarded a nearly $100 million contract by the U.S. Navy to perform maintenance and upgrades on two warships at the company's shipyard in San Diego Bay. The ships include the USS Stockdale, a guided-missile destroyer that made headlines in November.

Why it matters

This contract is a significant win for BAE Systems and highlights the importance of the company's San Diego shipyard in supporting the U.S. Navy's fleet. It also underscores the ongoing need for maintenance and upgrades of aging naval vessels.

The details

Under the contract, BAE Systems will carry out a range of repairs and modernization work on the USS Stockdale and another unnamed Navy warship at its shipyard in San Diego. The work is expected to include hull, mechanical, and electrical upgrades, as well as other maintenance tasks.

  • The contract was awarded on January 31, 2026.

The players

BAE Systems

A major global defense, aerospace, and security company that provides a wide range of products and services for military, government, and commercial customers.

USS Stockdale

A guided-missile destroyer in the U.S. Navy that made headlines in November.

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What’s next

The maintenance and upgrade work on the two Navy warships is expected to be completed by the end of 2026.

The takeaway

This contract reinforces the importance of San Diego's shipbuilding and repair industry in supporting the U.S. Navy's operations and highlights BAE Systems' role as a key defense contractor in the region.