Huntington Ingalls Industries Inc

Huntington Ingalls Industries won a $5.1B contract to refuel and overhaul the USS Harry S. Truman aircraft carrier, with options that could raise the total value to $5.18B. The work will be performed in Newport News, Virginia, and is expected to be completed by November 2031. Separately, the firm received a $123.37M contract modification for production and support equipment for Lionfish small unmanned undersea vehicles, with work expected to be completed by December 2027 and Naval Sea Systems Command as the contracting activity. Together, the two awards bring HII's announced contract value to about $5.23B.

HII announced that its Newport News Shipbuilding division has achieved preliminary acceptance of the aircraft carrier John F. Kennedy (CVN 79), the second Gerald R. Ford-class nuclear-powered carrier. Preliminary acceptance is the final step before formal delivery to the U.S. Navy, and it allows the Navy to begin underway test and evaluation of Kennedy's unique systems while the crew gains operational proficiency. CVN 79 successfully completed acceptance trials in August. Bryan Caccavale, NNS vice president of program management, said achieving preliminary acceptance is another step toward ensuring the U.S. Navy has the aircraft carriers it needs to carry out its mission of defending the nation. The carrier departed Newport News Shipbuilding today and will transition to Naval Station Norfolk.

HII has expanded its unmanned systems production campus in Pocasset, Massachusetts, by 10,000 square feet, increasing the existing 40,000-square-foot manufacturing facility's capacity by 25 percent to meet growing global demand for autonomous maritime platforms. The expansion adds production capacity for the U.S. Navy's Lionfish small unmanned undersea vehicle, which is based on HII's commercial REMUS 300 platform and is currently in production, following a Navy option-year contract awarded to HII in July for continued Lionfish production. The facility will also support production of HII's REMUS 620 unmanned underwater vehicle and advance integration of the company's Odyssey Autonomous Control Solutions software, including simulation and modeling capabilities and autonomy hardware for ROMULUS unmanned surface vessels. HII celebrated the expansion with a ribbon-cutting ceremony attended by U.S. Rep. Bill Keating, MA-09, a longtime supporter of the company's Massachusetts operations who also spoke at the 2014 grand opening of the Pocasset facility. HII currently employs approximately 300 people in Pocasset and has added 50 employees year to date in 2026; the REMUS family of unmanned underwater vehicles, which marked its 25th anniversary in 2026, has seen more than 750 vehicles delivered to customers in more than 30 countries, including 14 NATO members, with more than 90 percent of systems delivered over the past 25 years still in active service.

Mercury Systems reported fourth quarter fiscal 2026 revenues of $289.8 million, up 6.1% year on year and 9.2% above analysts' expectations, as the 14 defense contractors stocks tracked by the report collectively beat consensus revenue estimates by 4% and guided next quarter 1.1% above expectations. Chairman and CEO Bill Ballhaus said the company delivered record bookings, record backlog, record revenue, the highest EBITDA margin of the year, and robust free cash flow, though Mercury shares are down 18.5% since reporting and trade at $85.56. Huntington Ingalls posted the group's best quarter, with revenues of $3.42 billion, up 10.9% year on year and 8.2% above expectations, while its shares have traded sideways at $278.53. Parsons delivered the weakest quarter, with revenues of $1.58 billion, flat year on year and 1.9% below expectations, alongside full-year revenue and EBITDA guidance that missed significantly, sending its stock down 25.5% to $46.19. Northrop Grumman reported revenues of $10.88 billion, up 5.1% and 0.5% above expectations, with shares flat at $526.95, and Leidos reported revenues of $4.56 billion, up 7.2% and 2.6% above expectations, with its stock up 10.4% at $131.09. On average, defense contractors shares are down 2.9% since the latest earnings results.

The U.S. Department of War announced a $336,112,000 Navy contract for Huntington Ingalls Industries to advance procurement of long-lead materials for construction of the future USS William J. Clinton, designated CVN 82. Work will be executed in Newport News, Virginia, with completion anticipated by March 2039, and shipbuilding and conversion funding from FY 2026 will be obligated at the time of award. The award is a sub-component of the Navy's larger aircraft carrier replacement program, which defense websites say the service plans to fund at $22.34 billion over the next five years, with this contract seen as among the first in a sequence of awards as procurement accelerates. The sole-source contract reaffirms HII's status as the sole nuclear carrier builder for the U.S. Navy and extends revenue visibility to 2039, supporting the company's raised full-year shipbuilding revenue guidance of $10.2 billion to $10.4 billion and shipbuilding operating margin of 6% to 6.5%. The contract is cost-only and undefinitized, meaning work begins before final pricing and terms are agreed, adding to cash strain after HII used $31 million of net cash in operating activities in Q2, spent $193 million on capital expenditure, and posted negative free cash flow of $611 million for the first half of 2026 against full-year FCF guidance of $500-600 million. Hedge fund ownership in HII rose 18% in the second quarter to 47 funds from 40, with AQR Capital Management remaining the largest stakeholder at approximately $184 million as of June 30, 2026, followed by Diamond Hill Capital at over $55 million and Citadel Investment Group at $53 million.

HII announced it has been awarded a $336 million undefinitized contract from the U.S. Navy to begin procurement of long-lead time materials for the construction of the planned aircraft carrier CVN 82 at its Newport News Shipbuilding division. The award initiates advanced procurement of propulsion plant materials critical to the future construction of CVN 82. Bryan Caccavale, NNS vice president of program management, said ordering the materials necessary to build the world's mightiest aircraft carriers is a critical first step as planning begins for CVN 82, and that the contract sends an important demand signal to the thousands of suppliers across the nation who make up the aircraft carrier industrial base. CVN 82 will continue the legacy of highly capable nuclear-powered U.S. aircraft carriers.

HII announced that its Newport News Shipbuilding division has successfully completed acceptance sea trials of John F. Kennedy (CVN 79), the second Gerald R. Ford-class nuclear-powered aircraft carrier. The ship returned to Newport News after further testing and evaluation of important ship systems and components at sea, following successful builder's sea trials earlier this year. Derek Murphy, NNS vice president of new construction aircraft carrier programs, said the trials are a testament to the entire nuclear shipbuilding enterprise and the work of thousands across the country to prepare CVN 79 to join the fleet. The sea trials brought together NNS shipbuilders, John F. Kennedy sailors, and Navy personnel to execute testing and evaluation of ship operations. With successful completion of acceptance trials, the next step is preliminary acceptance that will enable the Navy to begin underway test and evaluation of Kennedy's unique systems.

JPMorgan Chase has launched a 10-year, $1.5 trillion Security and Resilience Initiative to finance and invest in industries crucial to U.S. national security, including defense and shipbuilding. CEO Jamie Dimon stated the move addresses overreliance on unreliable sources for critical minerals and manufacturing. The initiative is expected to benefit defense contractors such as General Dynamics, a prime contractor on the $100 billion Columbia-class submarine program, and Huntington Ingalls, which holds a monopoly on U.S. nuclear-powered aircraft carriers and is developing next-generation $13 billion supercarriers. Both companies stand to gain from increased investment and supply-chain improvements that could help convert large order backlogs into revenue.

HII and HD Hyundai Heavy Industries are advancing their strategic partnership with a pilot program to implement additional intelligent mechanized welding equipment at HII’s Ingalls Shipbuilding division. The pilot deploys intelligent mechanized welding systems in unit-fabrication areas that currently rely predominantly on manual welding, making the process safer and more efficient. The system automatically recognizes workpieces and welding conditions, corrects welding positions in real time, and captures process data for quality control and traceability. Ingalls Shipbuilding President Brian Blanchette said the pilot extends automation further into the production process and to a greater share of the workforce, while Dr. Won-ho Joo, chief executive of the Naval & Special Ship Business Unit at HHI, noted the program reflects strengthening partnership and open technical collaboration. The initiative grew out of a three-day technical exchange at Ingalls where the companies evaluated shipbuilding technologies and automation opportunities.

Huntington Ingalls Industries reported second-quarter revenue of $3.4 billion, up 10.9% year over year, and raised its 2026 shipbuilding revenue guidance to between $10.2 billion and $10.4 billion. Diluted earnings per share rose to $5.27 from $3.86 a year earlier, while shipbuilding revenue climbed 15.7% to $2.7 billion, driven by a 15.3% increase at Newport News and a 16.7% increase at Ingalls. The company also raised its 2026 shipbuilding margin guidance to between 6% and 6.5% and reiterated its free cash flow outlook of $500 million to $600 million. During the quarter, Huntington Ingalls secured a major $76.6 billion submarine contract award for Block VI and Columbia-class submarines, with approximately $25 billion allocated to Newport News, providing long-term stability. Mission Technologies revenue declined 3.9% to $760 million, and the company noted that free cash flow in the quarter came in below forecast due to timing of receipts and disbursements.

The US Department of Defense announced two major defense contracts worth a combined total of approximately 135 billion US dollars to rapidly expand weapons production capacity amid the escalating Iran war and dwindling arsenals. One of the contracts is a 59 billion dollar, seven-year agreement between the US Army and Lockheed Martin to increase production of Patriot interceptor missiles. The other contract, worth up to 76.6 billion dollars, was awarded to General Dynamics and Huntington Ingalls Industries to expand nuclear submarine construction and upgrade shipyards. It covers nine Virginia-class Block VI attack submarines and an additional five Columbia-class nuclear ballistic missile submarines, bringing the total planned procurement to 12 boats. Following the announcement, shares of General Dynamics rose 2.6 percent, Huntington Ingalls surged 3.9 percent, and Lockheed Martin gained 0.5 percent in after-hours trading.

HII announced that the U.S. nuclear submarine shipbuilding team, which includes its Newport News Shipbuilding division, has been awarded contracts for construction of Block VI Virginia-class and Build II Columbia-class submarines. The combined total of approximately $76.6 billion in contract modifications from the U.S. Navy to HII's Newport News Shipbuilding and General Dynamics Electric Boat supports the construction of five additional Columbia-class submarines, nine additional Virginia-class submarines, and other funding for shipyard infrastructure. Newport News Shipbuilding will serve as the delivery yard for six of the planned Virginia-class submarines and is a major shipbuilding partner on the Columbia-class program, constructing and delivering six module sections per submarine. NNS and Electric Boat have built and delivered 26 Virginia-class submarines to date.

HII’s Ingalls Shipbuilding division has expanded its distributed shipbuilding strategy to include modular unit construction for the U.S. Navy’s amphibious transport dock program, beginning with Philadelphia (LPD 32). Ingalls Shipbuilding President Brian Blanchette said expanding distributed shipbuilding into the LPD program is a critical step in scaling capacity to meet rising fleet demand. Last year, HII doubled its distributed shipbuilding workload, and the company plans to increase outsourced shipbuilding hours by another 30% in 2026, with amphibious ships representing a significant share of that growth.

HII hosted Australian Minister for Defence Industry Pat Conroy at its Newport News Shipbuilding Charleston Operations site in South Carolina. The visit supported the AUKUS trilateral partnership and included a tour of the production facility, where output has increased by more than 50% under HII’s ownership. Conroy said he looks forward to seeing Australian-made parts flow through this and other U.S. facilities. HII is delivering the Australian Submarine Supplier Qualification Program, which has already qualified 13 Australian suppliers for integration into the U.S. and U.K. nuclear submarine supply chains.

HII announced it will host an exclusive media briefing on its Odyssey Autonomous Control System on Monday, July 20, 2026, from 10:30 to 11:30 a.m. Eastern time. The briefing will focus on how the proven autonomy software powers intelligent unmanned vehicles and supports the U.S. Navy and allied navies in integrating manned and unmanned maritime operations. Odyssey ACS is already deployed on REMUS unmanned underwater vehicles in more than 30 countries and on ROMULUS unmanned surface vehicles, providing a foundation for future operations while reducing technology risk and lifecycle costs. HII experts will discuss the system's role in shaping undersea operations and the decisive advantage of trusted autonomy in the evolving maritime battlespace. Members of the media interested in participating should contact Greg McCarthy at gregory.j.mccarthy@hii-co.com for call-in details.

While SpaceX dominates aerospace headlines, a simple stock screen reveals Lockheed Martin, Huntington Ingalls, and Leidos all boast stronger fundamentals. Lockheed Martin, the world's largest pure-play defense contractor, generated $5.7 billion in free cash flow over the past year, dwarfing SpaceX's $19.8 billion cash burn. Huntington Ingalls, a military shipbuilder, produced $792 million in free cash flow, exceeding its $605 million net income. Leidos, a defense technology specialist, trades at just 7.2 times free cash flow and 0.8 times annual sales, making it the cheapest of the trio. All three are profitable and cash-flow positive, in stark contrast to SpaceX's $8.7 billion net loss.

HII christened the future USS George M. Neal, the fourth Flight III Arleigh Burke-class destroyer built at its Ingalls Shipbuilding division. The ship is named for Aviation Machinist’s Mate Third Class George M. Neal, a Korean War veteran and Navy Cross recipient who survived nine days evading enemy forces and two and a half years as a prisoner of war. Performing the duties of the under secretary of the Navy, William Toti delivered the keynote address, emphasizing the critical role of Flight III destroyers in national security. HII President and CEO Chris Kastner highlighted the craftsmanship of the Ingalls workforce, stating that DDG 131 will be the most powerful surface combatant in the world upon delivery. The ship’s sponsor, Kelley Neal Gray, daughter of the namesake, performed the traditional bottle-breaking ceremony to formally christen the vessel.

Huntington Ingalls Industries has been awarded a $418 million contract to provide repair and maintenance services for shipboard-based elevators on U.S. Navy aircraft carriers and amphibious ships. The five-year, indefinite-delivery/indefinite-quantity contract was awarded by the Naval Sea Systems Command and will be executed by HII's Mission Technologies division. Under the agreement, the company will deliver engineering, maintenance, and technical repair support for elevators, cargo handling equipment, and associated systems to enhance fleet operational readiness.

HII's Ingalls Shipbuilding division has started fabrication of the future USS John F. Lehman, marking the official start of construction on the Navy's newest Flight III Arleigh Burke-class destroyer. The milestone was achieved on Monday, with steel cutting having taken place on June 29, 2026. DDG 137 is the seventh Flight III destroyer to be built at Ingalls, and the yard currently has five Flight III destroyers under construction with seven more in early pre-planning and material procurement. The project leverages HII's distributed shipbuilding model, with six partner yards across Texas, Louisiana, Mississippi and Florida producing structural units, allowing Ingalls to focus on final assembly and integration. HII plans to outsource more than 2.5 million hours of shipbuilding work in 2026 as part of this strategy.

Huntington Ingalls Industries and Lockheed Martin are compared as defense investments for 2026. Huntington Ingalls, the primary builder of aircraft carriers and submarines for the U.S. Navy, generated nearly $12.5 billion in revenue in fiscal 2025, up 8.2% year over year, with a net margin of about 4.8% and a debt-to-equity ratio close to 0.6. Lockheed Martin, a diversified aerospace giant, reported nearly $75.1 billion in revenue, growth of about 5.7%, a net margin of roughly 6.7%, and a debt-to-equity ratio of approximately 3.2. The analysis favors Huntington Ingalls due to its lower valuation, faster revenue growth, and significantly lower debt, despite slightly lower profitability.

HII and the U.S. Navy celebrated the opening of a new facility at Newport News Shipbuilding that will enhance the work environment for sailors and shipbuilders during refueling and complex overhaul of nuclear-powered aircraft carriers. The Carrier Refueling Overhaul Workcenter provides approximately 80,000 square feet of dedicated space near aircraft carriers undergoing RCOH, including office spaces and quality of service areas for sailors. NNS President Kari Wilkinson called the facility a shining example of teamwork, while Vice Chief of Naval Operations Adm. James Kilby said it directly supports the Navy's Sailors First vision by providing a modern space outside the heavy industrial environment to build well-being and warfighting readiness. The new facility is located mid-yard at NNS, conveniently between the dry dock and the outfitting pier that support RCOH work.

Huntington Ingalls Industries' Mission Technologies division secured a $418 million, five-year IDIQ contract from the U.S. Navy to repair and maintain shipboard elevators, cargo handling equipment, and related systems on aircraft carriers and amphibious ships worldwide. The contract expands the division's long-running Elevator Support Unit work and deepens HII's role in sustaining the Navy's global operational readiness. While the award strengthens the near-term services story and slightly reduces reliance on large, lumpy contracts, it does not fundamentally change the main catalyst of future submarine and carrier contract timing or key risks around supply chain, labor, and budget uncertainty. The deal, alongside the recent REMUS 130 unmanned underwater vehicle delivery, illustrates how HII is building a recurring, tech-enabled services base that could partially offset volatility from major long-cycle ship programs.

Huntington Ingalls Industries reported a record backlog of $54 billion as of March 31, 2026, driven by strong demand for its naval shipbuilding programs. The company secured $4 billion in contract awards during the first quarter of 2026, with about $31.97 billion of the backlog funded. It completed builder's sea trials for the aircraft carrier John F. Kennedy and the USS Zumwalt, and expanded into autonomous systems through a partnership with Applied Intuition. However, supply-chain disruptions and workforce shortages led to $65 million in unfavorable cumulative catch-up revenue adjustments, and performance challenges at the Newport News Shipbuilding segment may persist for years.

Huntington Ingalls Industries has delivered the first REMUS 130 unmanned underwater vehicle to a U.S. ally, marking a milestone for its autonomous maritime systems business. The REMUS 130 is the latest version of the REMUS 100 series and the third generation of the platform, built on proven REMUS 300 technology with improved underwater capabilities, greater flexibility, and a modular design while keeping costs and risks lower. The vehicle is powered by HII's Odyssey software suite, which helps improve mission coordination, operational efficiency, and autonomous operations across different platforms. The global UUV market is expected to grow at a compound annual growth rate of 16.6% from 2025 to 2035, reaching $25.9 billion by 2035, according to Market Research Future. Huntington Ingalls is the largest producer of UUVs worldwide, and its shares have gained 27.5% in the past year, outperforming the industry's 7.3% growth.