BAE Systems has received a $138 million US Navy contract to continue manufacturing propulsor assemblies for the Virginia-class nuclear-powered attack submarine fleet, supporting the service’s effort to expand submarine production and strengthen its industrial supply chain.The contract covers the manufacture of propulsor assemblies, engineering services, replacement parts, and associated manufacturing support. Its ordering period extends through September 2032, giving BAE Systems a longer-term role in supplying one of the submarine’s critical propulsion components.The Navy awarded the contract on September 29, 2026, with an official value of approximately $137.66 million. BAE Systems announced the award on November 12.The company says it is meeting the Navy’s production target of two Virginia-class propulsor sets annually and has delivered major propulsor assemblies for every submarine in the class built to date.A critical component for submarine propulsionA propulsor is the assembly that converts mechanical power from a submarine’s propulsion system into thrust, allowing the vessel to move through water. Unlike a conventional exposed propeller, modern submarine propulsors are designed with acoustic performance and structural requirements in mind.Reducing underwater noise is particularly important for nuclear-powered attack submarines, which rely on stealth to conduct surveillance, track other vessels, and operate in contested waters.The Navy’s budget documentation describes the Virginia-class propulsor as an assembly incorporating nickel-aluminum bronze blades and large steel and Inconel fabrication components. It must generate sufficient thrust to propel the submarine while meeting specified torque, shaft-speed, acoustic, and structural requirements.This makes manufacturing a demanding engineering task. The component must withstand substantial mechanical loads while maintaining the performance characteristics required for quiet underwater operation.BAE Systems has supplied major propulsor assemblies throughout the Virginia-class program. Its latest contract continues that work while covering engineering and replacement support in addition to production.Supporting a faster submarine-building scheduleThe award comes as the US Navy seeks to expand its submarine industrial base to support a more demanding construction schedule. Its broader shipbuilding objective, often described as a 1+2 cadence, calls for producing one Columbia-class ballistic missile submarine and two Virginia-class attack submarines annually.Meeting that goal requires more than expanding work at the shipyards. Specialized components, propulsion equipment, castings, electronics, and other systems must also be available at a rate that matches submarine construction.BAE Systems says it is investing in manufacturing and engineering capabilities across Louisville, Kentucky; Jacksonville, Florida; and Minneapolis, Minnesota, to support the Navy’s requirements.The official contract identifies Louisville as the place of performance. The company’s wider network of facilities and engineering capabilities is intended to support the production effort and its associated technical requirements.The Virginia-class program is central to the Navy’s undersea force structure. Built by General Dynamics Electric Boat and HII’s Newport News Shipbuilding, the nuclear-powered attack submarines conduct missions ranging from anti-submarine warfare and intelligence gathering to land-attack operations.The latest BAE Systems award does not introduce a new propulsion design or increase the submarine’s performance specifications. Rather, it secures continued production of a critical component as the Navy works to expand the industrial capacity behind its future submarine fleet.