Huntington Ingalls Secures $417.7M Contract for Navy Maintenance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: seekingalpha
- Significant Contract Value: Huntington Ingalls Industries (HII)'s Mission Technologies unit has secured a $417.7 million contract for the maintenance and repair of elevator support systems on U.S. Navy aircraft carriers and amphibious ships, showcasing the company's robust position in the defense sector.
- Extensive Work Scope: The project will be executed both inside and outside the continental U.S., including forward-deployed locations, with completion expected by June 2031, indicating HII's flexibility and adaptability in meeting Navy requirements.
- Funding Allocation Mechanism: No funding was obligated at the time of the award, with funds to be allocated through individual task orders, a flexible financial management approach that helps HII maintain stability in future projects.
- Contracting Authority: The contract is managed by the Naval Sea Systems Command, further solidifying HII's partnership with the U.S. Navy and potentially paving the way for more contract opportunities in the future.
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Analyst Views on HII
Wall Street analysts forecast HII stock price to rise
6 Analyst Rating
4 Buy
1 Hold
1 Sell
Moderate Buy
Current: 296.890
Low
300.00
Averages
344.80
High
376.00
Current: 296.890
Low
300.00
Averages
344.80
High
376.00
About HII
Huntington Ingalls Industries, Inc. is a global, all-domain defense partner, building and delivering naval ships and technologies. Its segments include Ingalls Shipbuilding (Ingalls), Newport News Shipbuilding (Newport News) and Mission Technologies. Ingalls segment includes its non-nuclear ship design, construction, repair, and maintenance businesses. Newport News segment includes all of its nuclear ship design, construction, overhaul, refueling, and repair and maintenance businesses. Mission Technologies segment provides a range of services and products, including command, control, computers, communications, cyber, intelligence, surveillance, and reconnaissance systems and operations; the application of artificial intelligence and machine learning to battlefield decisions; defense and offensive cyberspace strategies and electronic warfare; unmanned autonomous systems; live, virtual, and constructive training solutions; platform modernization, and critical nuclear operations.
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.
Huntington Ingalls Secures $417.7M Contract for Navy Maintenance
- Significant Contract Value: Huntington Ingalls Industries (HII)'s Mission Technologies unit has secured a $417.7 million contract for the maintenance and repair of elevator support systems on U.S. Navy aircraft carriers and amphibious ships, showcasing the company's robust position in the defense sector.
- Extensive Work Scope: The project will be executed both inside and outside the continental U.S., including forward-deployed locations, with completion expected by June 2031, indicating HII's flexibility and adaptability in meeting Navy requirements.
- Funding Allocation Mechanism: No funding was obligated at the time of the award, with funds to be allocated through individual task orders, a flexible financial management approach that helps HII maintain stability in future projects.
- Contracting Authority: The contract is managed by the Naval Sea Systems Command, further solidifying HII's partnership with the U.S. Navy and potentially paving the way for more contract opportunities in the future.
See More
HII Delivers First REMUS 130 Unmanned Underwater Vehicle
- Milestone Delivery: HII has successfully delivered the first REMUS 130 unmanned underwater vehicle, marking a significant advancement for the series and is expected to further solidify its leadership in the global autonomous underwater systems market.
- Technological Innovation: The REMUS 130 integrates modernized electronics and open-architecture interfaces, providing enhanced mission flexibility and interoperability to meet diverse needs such as oceanographic research and environmental monitoring.
- Enhanced Operational Capability: This vehicle operates at depths of up to 100 meters with an endurance of up to 10 hours, and features field-swappable batteries that significantly improve mission readiness and execution efficiency.
- Global Market Expansion: HII has delivered over 750 REMUS systems worldwide, and the introduction of REMUS 130 will further enhance its application across 14 NATO navies, increasing the company's market share in both defense and commercial sectors.
See More
HII Partners with Bayou Metals to Accelerate ROMULUS USV Production
- Production Line Launch: Bayou Metal Supply & Manufacturing has launched a dedicated production line in Slidell, Louisiana, to support the accelerated construction of HII's ROMULUS unmanned surface vessels (USVs), ensuring precise cutting, bending, welding, and assembly of major structural components, thereby enhancing production efficiency.
- Strategic Partnership: As HII's aluminum supply and fabrication partner, Bayou Metals is providing marine-grade aluminum and establishing dedicated manufacturing capacity to meet the ROMULUS USV production schedule, which reduces production risks and accelerates delivery timelines.
- Capacity Enhancement: HII plans to build four ROMULUS 151 vessels at Breaux Brothers Enterprises, marking a rapid transition from prototype to initial production, aimed at accelerating the delivery of autonomous surface capabilities to the U.S. Navy and allied partners.
- Industry Impact: This collaboration not only improves manufacturing performance but also supports the expansion of the U.S. shipbuilding industrial base by increasing Gulf Coast manufacturing capacity and building a larger skilled workforce, thereby driving overall industry growth.
See More
U.S. Navy's 30-Year Shipbuilding Plan Unveiled
- Current Fleet Status: When President Trump took office, he promised a 355-ship Navy, but the current fleet stands at only 291 ships, an improvement from 275 in 2016, yet still below legal requirements, highlighting a persistent lag in naval construction.
- Budget and Plan: The Navy aims to achieve a fleet of 355 ships over the next 30 years with a proposed $1.5 trillion defense budget, focusing on high-end platforms like aircraft carriers and submarines while increasing the number of budget-friendly frigates and littoral combat ships to enhance global presence.
- Production Capacity Enhancement: The Navy's plan includes a whole-of-industry approach, proposing that 50% of future shipbuilding will occur at various shipyards across the country to boost production rates and curb cost overruns, with facility upgrades and workforce training as key components.
- Future Outlook: Although the fleet is not expected to reach 355 ships until 2040, the Navy's long-term goal is to approach 400 ships by the end of the 30-year plan, reflecting confidence in future naval expansion, particularly with the potential integration of unmanned maritime vehicles.
See More
U.S. Navy's 30-Year Shipbuilding Plan Overview
- Fleet Expansion Goals: The U.S. Navy aims to expand its battle force to 355 ships by 2040 and nearly 400 by 2056, despite currently having only 291 ships, highlighting the urgency and strategic necessity for growth.
- Budget and Investment: Under a $1.5 trillion defense budget, the Navy's shipbuilding budget has doubled over the past two decades, yet the fleet size has not increased, reflecting ongoing budgetary pressures and resource allocation challenges.
- Production Capacity Enhancement: The Navy plans to distribute 50% of future shipbuilding across multiple shipyards nationwide to improve production efficiency and reduce cost overruns, with expectations to leverage advanced AI tools for optimized construction scheduling.
- Future Outlook and Challenges: While the plan outlines a $305.7 billion investment in battle force and auxiliary ships over the next five years, the fleet's growth will be limited in the short term due to the retirement of older vessels, illustrating the tension between long-term goals and immediate realities.
See More
HII Welcomes Over 50 High School Graduates to Shipbuilding Careers
- Innovative Talent Attraction: HII's WAVES program, in collaboration with 14 Virginia schools, successfully attracts over 50 high school graduates into the shipbuilding industry, showcasing the company's commitment to future talent investment.
- Experienced Mentor Support: The program embeds skilled shipbuilders in high schools to provide monthly guidance and support, helping students build trust and understand HII career opportunities, thereby enhancing their confidence and skills.
- Successful Welcome Ceremony: NNS hosted its first 'Welcoming Ceremony' for students recruited through WAVES, recognizing their achievements and facilitating initial interactions with new teammates, which strengthens team cohesion.
- HII's Industry Leadership: As America's largest shipbuilder, HII's leadership in unmanned systems and defense technologies further solidifies its strategic advantage in attracting the next generation of skilled professionals.
See More
Huntington Ingalls Secures $417.7M Contract for Navy Maintenance
- Significant Contract Value: Huntington Ingalls Industries (HII)'s Mission Technologies unit has secured a $417.7 million contract for the maintenance and repair of elevator support systems on U.S. Navy aircraft carriers and amphibious ships, showcasing the company's robust position in the defense sector.
- Extensive Work Scope: The project will be executed both inside and outside the continental U.S., including forward-deployed locations, with completion expected by June 2031, indicating HII's flexibility and adaptability in meeting Navy requirements.
- Funding Allocation Mechanism: No funding was obligated at the time of the award, with funds to be allocated through individual task orders, a flexible financial management approach that helps HII maintain stability in future projects.
- Contracting Authority: The contract is managed by the Naval Sea Systems Command, further solidifying HII's partnership with the U.S. Navy and potentially paving the way for more contract opportunities in the future.
See More
HII Delivers First REMUS 130 Unmanned Underwater Vehicle
- Milestone Delivery: HII has successfully delivered the first REMUS 130 unmanned underwater vehicle, marking a significant advancement for the series and is expected to further solidify its leadership in the global autonomous underwater systems market.
- Technological Innovation: The REMUS 130 integrates modernized electronics and open-architecture interfaces, providing enhanced mission flexibility and interoperability to meet diverse needs such as oceanographic research and environmental monitoring.
- Enhanced Operational Capability: This vehicle operates at depths of up to 100 meters with an endurance of up to 10 hours, and features field-swappable batteries that significantly improve mission readiness and execution efficiency.
- Global Market Expansion: HII has delivered over 750 REMUS systems worldwide, and the introduction of REMUS 130 will further enhance its application across 14 NATO navies, increasing the company's market share in both defense and commercial sectors.
See More
HII Partners with Bayou Metals to Accelerate ROMULUS USV Production
- Production Line Launch: Bayou Metal Supply & Manufacturing has launched a dedicated production line in Slidell, Louisiana, to support the accelerated construction of HII's ROMULUS unmanned surface vessels (USVs), ensuring precise cutting, bending, welding, and assembly of major structural components, thereby enhancing production efficiency.
- Strategic Partnership: As HII's aluminum supply and fabrication partner, Bayou Metals is providing marine-grade aluminum and establishing dedicated manufacturing capacity to meet the ROMULUS USV production schedule, which reduces production risks and accelerates delivery timelines.
- Capacity Enhancement: HII plans to build four ROMULUS 151 vessels at Breaux Brothers Enterprises, marking a rapid transition from prototype to initial production, aimed at accelerating the delivery of autonomous surface capabilities to the U.S. Navy and allied partners.
- Industry Impact: This collaboration not only improves manufacturing performance but also supports the expansion of the U.S. shipbuilding industrial base by increasing Gulf Coast manufacturing capacity and building a larger skilled workforce, thereby driving overall industry growth.
See More
U.S. Navy's 30-Year Shipbuilding Plan Unveiled
- Current Fleet Status: When President Trump took office, he promised a 355-ship Navy, but the current fleet stands at only 291 ships, an improvement from 275 in 2016, yet still below legal requirements, highlighting a persistent lag in naval construction.
- Budget and Plan: The Navy aims to achieve a fleet of 355 ships over the next 30 years with a proposed $1.5 trillion defense budget, focusing on high-end platforms like aircraft carriers and submarines while increasing the number of budget-friendly frigates and littoral combat ships to enhance global presence.
- Production Capacity Enhancement: The Navy's plan includes a whole-of-industry approach, proposing that 50% of future shipbuilding will occur at various shipyards across the country to boost production rates and curb cost overruns, with facility upgrades and workforce training as key components.
- Future Outlook: Although the fleet is not expected to reach 355 ships until 2040, the Navy's long-term goal is to approach 400 ships by the end of the 30-year plan, reflecting confidence in future naval expansion, particularly with the potential integration of unmanned maritime vehicles.
See More
U.S. Navy's 30-Year Shipbuilding Plan Overview
- Fleet Expansion Goals: The U.S. Navy aims to expand its battle force to 355 ships by 2040 and nearly 400 by 2056, despite currently having only 291 ships, highlighting the urgency and strategic necessity for growth.
- Budget and Investment: Under a $1.5 trillion defense budget, the Navy's shipbuilding budget has doubled over the past two decades, yet the fleet size has not increased, reflecting ongoing budgetary pressures and resource allocation challenges.
- Production Capacity Enhancement: The Navy plans to distribute 50% of future shipbuilding across multiple shipyards nationwide to improve production efficiency and reduce cost overruns, with expectations to leverage advanced AI tools for optimized construction scheduling.
- Future Outlook and Challenges: While the plan outlines a $305.7 billion investment in battle force and auxiliary ships over the next five years, the fleet's growth will be limited in the short term due to the retirement of older vessels, illustrating the tension between long-term goals and immediate realities.
See More
HII Welcomes Over 50 High School Graduates to Shipbuilding Careers
- Innovative Talent Attraction: HII's WAVES program, in collaboration with 14 Virginia schools, successfully attracts over 50 high school graduates into the shipbuilding industry, showcasing the company's commitment to future talent investment.
- Experienced Mentor Support: The program embeds skilled shipbuilders in high schools to provide monthly guidance and support, helping students build trust and understand HII career opportunities, thereby enhancing their confidence and skills.
- Successful Welcome Ceremony: NNS hosted its first 'Welcoming Ceremony' for students recruited through WAVES, recognizing their achievements and facilitating initial interactions with new teammates, which strengthens team cohesion.
- HII's Industry Leadership: As America's largest shipbuilder, HII's leadership in unmanned systems and defense technologies further solidifies its strategic advantage in attracting the next generation of skilled professionals.
See More
