HII Completes Acceptance Trials for Destroyer Ted Stevens and Delivers Virginia‑Class Submarine Massachusetts, Boosting Q3 2025 Earnings

HII
November 22, 2025

On Friday, November 21, 2025, Huntington Ingalls Industries’ Ingalls Shipbuilding division finished the final round of sea‑trial acceptance for the Arleigh Burke‑class guided‑missile destroyer Ted Stevens (DDG 128). The trials, conducted in port and at sea, confirmed that the Flight III vessel met all required mission capabilities, including the AN/SPY‑6(V)1 radar and the Aegis Baseline 10 combat system, and positioned the ship for delivery to the U.S. Navy in the coming weeks.

The same day, Newport News Shipbuilding delivered the Virginia‑class fast‑attack submarine Massachusetts (SSN 798). Massachusetts is the 12th Virginia‑class submarine built by Newport News and the 25th overall in the joint program with General Dynamics Electric Boat. As a Block IV platform, it incorporates advanced stealth, surveillance, and multi‑mission capabilities that enhance the Navy’s undersea warfare envelope.

HII’s Q3 2025 financial results underscore the significance of these milestones. The company reported revenue of $3.20 billion, up 10% from the prior quarter and 5% from the same period a year earlier, driven by strong demand in its core shipbuilding and Mission Technologies segments. Earnings per share rose to $3.68, a $0.24 beat of consensus estimates, largely due to disciplined cost management and higher shipbuilding volumes that expanded operating margin to 5% from 3% a year earlier. The backlog stood at $55.7 billion as of September 30, 2025, reflecting sustained demand for HII’s platforms.

President and CEO Chris Kastner said, “We made steady progress on our 2025 operational initiatives in the third quarter. We have continued to see early signs that targeted investments are helping to strengthen our workforce and build a more robust maritime supply chain in support of higher shipbuilding throughput.” The comment highlights HII’s focus on operational efficiency and supply‑chain resilience as it delivers these high‑value vessels.

The earnings beat was well received by the market, with analysts noting the company’s ability to combine strong demand with effective cost control. The results reinforce confidence in HII’s execution and its capacity to meet the Navy’s growing requirements.

HII remains the sole builder of U.S. aircraft carriers and the largest independent military shipbuilder in the country. The successful trials and delivery of Ted Stevens and Massachusetts reinforce the company’s strategic importance to national security and its position to secure future contracts in a highly competitive defense market.

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