Huntington Ingalls Industries Inc. – A Bastion of American Naval Power

Huntington Ingalls Industries Inc. (NYSE: HII) remains the linchpin of the United States’ naval shipbuilding and maintenance ecosystem. With a market cap of $13.566 billion and a price‑earnings ratio of 24.25, the firm is firmly anchored in the industrial and aerospace‑defense sectors. Its two pillars—Newport News Shipbuilding and Ingalls Shipbuilding—are the sole American designers, builders, and maintainers of both nuclear and non‑nuclear vessels for the U.S. Navy and Coast Guard, and they provide aftermarket support for military ships worldwide.

1. The Momentum of the Destroyer Program

On 29 December 2025, Ingalls Shipbuilding delivered the Arleigh Burke‑class guided‑missile destroyer Ted Stevens (DDG 128) to the U.S. Navy. This was the second Flight III Arleigh Burke‑class destroyer to leave the yard, underscoring the company’s unbroken cadence in delivering high‑performance warships. The vessel’s enhanced anti‑air warfare and ballistic‑missile‑defence capabilities reinforce the Navy’s integrated air‑ and missile‑defence architecture. The fact that the shipyard can sustain such output while maintaining rigorous quality and safety standards speaks to Huntington Ingalls’ operational discipline and engineering excellence.

2. Strategic Contract for the Nimitz Carrier’s Final Retirement

In a complementary move, Huntington Ingalls secured a US$33.5 million contract modification to spearhead the inactivation and defuelling of the nuclear‑powered aircraft carrier USS Nimitz. The contract, awarded on 29 December 2025, entrusts HII’s Newport News Shipbuilding with the removal of the carrier’s reactor—a process that demands the highest level of nuclear safety and technical expertise. This award is part of the final retirement planning phase for a ship that has served the Navy for decades. The contract demonstrates the Navy’s confidence in HII’s capability to handle the most sensitive and technically demanding projects in the fleet’s lifecycle.

3. Market Context and Strategic Outlook

Huntington Ingalls’ stock closed at $345.73 on 28 December 2025, comfortably below its 52‑week high of $360.2 but well above its low of $158.88. The firm’s valuation, anchored by a solid earnings base, reflects the sustained demand for naval vessels and the strategic importance of domestic shipbuilding. In an era where geopolitical tensions and supply‑chain disruptions threaten to destabilize global defense production, HII’s position as the sole U.S. provider of nuclear‑powered warships and its robust pipeline of destroyer orders make it a bulwark against outsourcing risks.

4. Why Huntington Ingalls Matters Now

The delivery of the Ted Stevens and the Nimitz inactivation contract are not isolated events; they are symptomatic of a broader shift toward re‑investing in national defense capabilities. As rival powers modernize their fleets, the U.S. Navy relies on Huntington Ingalls to deliver vessels that can outmatch emerging threats. The company’s ability to deliver on time, within budget, and with the highest technical standards is a testament to its enduring relevance. Investors who recognize this strategic imperative can expect Huntington Ingalls to continue generating shareholder value through disciplined growth, disciplined risk management, and an uncompromising focus on defense excellence.