Huntington Ingalls Supplies Virginia-Class Submarine to US Navy

Huntington Ingalls Industries (HII) recently stated that its Newport News Shipbuilding (“NNS”) division has delivered the Virginia-class fast-attack submarine Massachusetts (SSN 798) to the U.S. Navy.

The Massachusetts is the 12th Virginia-class submarine completed by NNS and the 25th produced under its teaming agreement with General Dynamics Electric Boat.

Overview of HII’s Virginia-Class Submarine Program

HII’s Virginia-class submarine program exemplifies strong collaboration and efficiency. Together with its partner, General Dynamics Electric Boat, it is producing the most advanced attack submarines in the fleet.

Leveraging decades of submarine-building expertise, Newport News Shipbuilding is one of only two shipyards qualified to design and construct nuclear-powered submarines for the U.S. Navy. It also provides engineering, design and worldwide fleet maintenance support.

The company is constructing the U.S. Navy’s most advanced attack submarines, the Virginia-class. Designed for the Navy’s post-Cold War mission needs, these submarines incorporate cutting-edge technologies that enhance firepower, maneuverability and stealth. They can exceed submerged speeds of 25 knots and remain underwater for up to three months.

Growth Potential

Nations are ramping up investments in submarines to strengthen their naval warfare capabilities. Per a report by the Mordor Intelligence firm, the submarine market is expected to witness a compound annual growth rate of 4.17% during 2025-2030. This outlook suggests significant growth potential for Huntington Ingalls, which holds a strong and profitable position in the military submarine sector.

Some other defense players that can gain from the expanding submarine market are General Dynamics Corp. (GD), Northrop Grumman Corp. (NOC) and BAE Systems plc (BAESY).

General Dynamics’ Marine Systems segment is the U.S. Navy’s premier designer and builder of nuclear-powered submarines. The segment develops advanced weapon systems, combat control systems, sonar systems, and cybersecurity solutions for the Navy’s Virginia-class, Ohio-class and Columbia-class submarines.

GD stock boasts a long-term (three to five years) earnings growth rate of 12.81%. The Zacks Consensus Estimate for 2025 sales is pegged at $51.97 billion, which indicates a rise of 8.9%.

Northrop Grumman is a leading supplier of missile launch systems for naval submarines. The company produces Launcher Subsystem hardware that supports the common missile compartment program for both the Columbia-class and Dreadnought-class submarines.

NOC boasts a long-term earnings growth rate of 4.16%. The Zacks Consensus Estimate for 2025 sales is pegged at $41.89 billion, which calls for a jump of 2.1%.

BAE Systems has been a vital and dependable supplier to the U.S. Navy’s undersea fleet for more than 30 years. The company specializes in producing highly complex, heavy submarine structures that play a critical role in submarine construction. It is also the primary manufacturer of the Astute-class nuclear submarines, a key component of the Royal Navy’s fleet.

BAESY boasts a long-term earnings growth rate of 14.45%. The Zacks Consensus Estimate for 2025 sales is pegged at $40.68 billion, which suggests an increase of 62.9%.

HII Stock Price Movement

In the past six months, HII shares have climbed 37.9% compared with the industry’s 9.2% growth.

HII’s Zacks Rank

Huntington Ingalls currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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