The Arleigh Burke‑class guided‑missile destroyer USS Ted Stevens (DDG 128) was formally delivered to the U.S. Navy on December 29, 2025. The ship is the second Flight III destroyer built by Huntington Ingalls Industries (HII) and the first to carry the AN/SPY‑6(V)1 radar and the Aegis Baseline 10 combat system, giving the Navy a significant boost in air‑defense and missile‑strike capability.
HII’s throughput remains strong, with four additional Flight III destroyers under construction and seven more in early pre‑planning. The company’s distributed shipbuilding model—partnering with external yards such as Eastern Shipbuilding Group to fabricate blocks—has expanded production capacity and helped keep the program on schedule. The delivery of Ted Stevens therefore underscores HII’s ability to scale its flagship program while maintaining quality and timelines.
Financially, the shipbuilding segment drove Q3 2025 revenue to $3.19 billion, a 16.1% year‑over‑year increase, and diluted earnings per share to $3.68, up 43.8% from $2.56 a year earlier. The high‑margin nature of Flight III destroyers, combined with the company’s growing backlog, has lifted overall profitability and positioned HII to meet future Navy demand. The delivery of Ted Stevens adds a valuable asset to the fleet and reinforces the company’s competitive advantage in the surface‑combatant market.
The Flight III platform represents a technological leap for the U.S. Navy. The AN/SPY‑6(V)1 radar and Aegis Baseline 10 system provide enhanced detection and engagement of hypersonic threats, while the ship’s advanced propulsion and weapons suite improve survivability and mission flexibility. In a geopolitical environment marked by rising tensions in the Indo‑Pacific and Eastern Mediterranean, the Navy’s ability to field these advanced destroyers is a key element of its modernization strategy.
Brian Blanchette, President of Ingalls Shipbuilding, said the delivery “reflects the strong momentum of our destroyer program as we accelerate Flight III production and bring enhanced capabilities to the fleet.” He added that the ship “will serve as a powerful asset in strengthening U.S. maritime security for decades to come,” highlighting confidence in the company’s execution and the strategic value of the platform.
Market reaction to the delivery was driven largely by the Navy’s recent contract awards and analyst coverage. A new small surface‑combatant contract announced in mid‑December and Citigroup’s initiation of coverage with a ‘Buy’ rating and a $376 price target helped lift investor sentiment, even though the delivery itself was a routine milestone within HII’s broader program.
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