HII CONFIRMS NEW CONTRACTS WITH BASE WAGE INCREASES OF 18% OR MORE FOR UNIONIZED SHIPBUILDERS AT INGALLS SHIPBUILDING
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 12 2026
0mins
Should l Buy HII?
Source: moomoo
New Wage Agreement: A new agreement has been ratified that includes an 18% or higher increase in base wages for union-represented shipbuilders.
Impact on Shipbuilding Industry: This wage increase is expected to significantly affect all shipbuilding operations, enhancing the financial conditions for workers in the sector.
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Analyst Views on HII
Wall Street analysts forecast HII stock price to fall
6 Analyst Rating
4 Buy
1 Hold
1 Sell
Moderate Buy
Current: 381.790
Low
300.00
Averages
344.80
High
376.00
Current: 381.790
Low
300.00
Averages
344.80
High
376.00
About HII
Huntington Ingalls Industries, Inc. is a global, all-domain defense provider. The Company delivers ships and all-domain solutions in service of the nation. It delivers critical capabilities extending from ships to unmanned systems, cyber, ISR, AI/ML and synthetic training. It operates through three segments: Ingalls Shipbuilding (Ingalls), Newport News Shipbuilding (Newport News), and Mission Technologies. Through its Ingalls segment, the Company designs and constructs non-nuclear ships for the United States Navy and Coast Guard, including amphibious assault ships, expeditionary warfare ships, surface combatants, and national security cutters (NSC). The core business of its Newport News segment is designing and constructing nuclear-powered aircraft carriers and submarines, and the refueling and overhaul and the inactivation of nuclear-powered aircraft carriers. The Company’s Mission Technologies segment develops integrated solutions that enable connected, all-domain force.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Railgun Technology: The railgun can launch 18-inch projectiles at speeds of 4,600 miles per hour, costing as little as $25,000 per shot, which means the USS Defiant could sustain combat without running out of ammunition, enhancing its operational endurance.
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See More
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- Media Participation Opportunity: The event is media-exclusive and requires prior confirmation of attendance, reflecting both companies' emphasis on media outreach, which is expected to enhance public understanding of the applications of physical AI in manufacturing.
See More
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- Slow Project Progress: Since the Navy first awarded General Dynamics a design contract in 2017, the project has faced delays, with the first submarine not expected to be delivered until 2027, highlighting the complexity and long timelines of military projects.
- Market Share Distribution: General Dynamics will receive 78% of the project funding, while competitor Huntington Ingalls will be responsible for the bow and stern sections of the submarines, illustrating the collaborative yet competitive dynamics between the two firms in this critical defense initiative.
- Investment Value Analysis: Despite General Dynamics' significant role in defense, its price-to-earnings ratio exceeds 22, with a long-term growth forecast of only 10.5%, whereas Huntington Ingalls presents a more attractive PEG ratio, suggesting investors should carefully evaluate the investment potential of General Dynamics.
See More
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- Total Program Cost: According to the Government Accountability Office, the total cost for building 12 Columbia-class submarines is projected to reach $126.5 billion, with a cost per hull of $10.5 billion, and General Dynamics responsible for 78% of the construction, solidifying its dominance in the defense market.
- Accelerated Production Preparations: The Navy is preparing to begin serial production of the Columbia-class submarines, with the first boat expected to be delivered in 2027, further enhancing the U.S. Navy's strategic deterrence capabilities while providing General Dynamics with long-term revenue assurance.
- Competitive Analysis: Although General Dynamics has a higher P/E ratio, its competitor Huntington Ingalls, focused solely on shipbuilding, is projected to achieve a 14% earnings growth over the next five years, indicating a more attractive investment potential.
See More
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- New Battleship Initiative: The U.S. Navy's plan to construct the USS Defiant, measuring between 840 and 880 feet and displacing over 35,000 tons, signifies a return to battleship construction, with an expected timeline of over a decade for completion, reflecting a strategic shift in naval capabilities.
- Railgun Technology: Equipped with a railgun, USS Defiant could accelerate projectiles to 4,600 miles per hour with a range of 110 miles, and with a cost of only $25,000 per shot, this technology promises to drastically reduce operational costs and enhance firepower sustainability.
- Contractor Selection: BAE Systems has developed the current railgun prototype and may become the primary contractor for USS Defiant's armament, while Japan continues its railgun research, indicating a growing international competition in advanced military technologies.
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See More
