BAE Systems PLC (LSE:BA.) and Babcock International PLC (LSE:BAB) have been awarded an order to build six new landing and assault craft for the Royal Marines.
Defence Minister Grant Shapps said the new vessels would be Multi-Role Support Ships capable of launching drones and laser-targeted missiles as well as amphibious landing support.
Prime Minister Rishi Sunak announced last month that UK defence spending would rise to 2.5% of GDP by 2030, adding that the country's weapons makers must be on a "war footing".
"It's something we're now able to do because the money's been pledged to defence," Shapps told the BBC.
Two existing Royal Marine assault ships, HMS Albion and HMS Bulwark, are also set to have their lives extended according to the reports today.
Britain’s Navy has 28 ships and submarines for the Navy, which Shapps said represented "a new Golden Age for British shipbuilding".
Shares rose 0.6% to 1,354p and Babcock 3% to 520p.