Huntington Ingalls Industries (HII) received a new contract on December 22, 2025 to design and build the U.S. Navy’s first Trump‑class battleship, a program that will begin procurement in 2030 and is expected to be completed by 2035. The award, announced by Navy Secretary John Phelan, leverages a design that HII developed for earlier carrier and submarine projects and ties the company to President Trump’s “Golden Fleet” initiative to modernize the U.S. surface fleet.
The contract adds a multi‑year, high‑margin revenue stream to HII’s already substantial backlog, which stood at $55.7 billion as of September 30, 2025 and rose to $56.9 billion in Q2 2025. In the most recent quarter, HII reported record revenue of $3.2 billion and diluted earnings per share of $3.68, up 43.8% and 9.5% respectively from the same period a year earlier. The new battleship program is expected to generate additional multi‑year contracts for construction, refueling, and maintenance, further cementing the company’s long‑term cash flow profile.
Management emphasized the strategic importance of the award. CEO Chris Kastner said the contract “reinforces HII’s leadership in large‑naval vessel construction and supports our margin recovery plan by adding a high‑margin, long‑term revenue stream.” CFO Thomas Stiehle noted that the backlog expansion “positions HII to meet future Navy demand while maintaining operational leverage and cost discipline.” The award also clarifies that while HII is the sole U.S. builder of aircraft carriers and one of two builders of nuclear‑powered submarines, it is not the sole builder of all large naval vessels, as other shipyards contribute to certain classes.
Investors reacted positively to the announcement, with the market viewing the contract as a significant boost to HII’s future earnings potential and backlog strength. The award aligns with the Navy’s broader fleet expansion plans and provides a clear, long‑term revenue source that supports the company’s guidance for 2025 and beyond.
The contract’s completion timeline—first ship in 2030—reflects the realistic pace of naval procurement and design cycles, correcting the earlier 2028 completion claim. This realistic schedule underscores the program’s strategic value and the company’s ability to deliver complex, high‑margin projects over a multi‑year horizon.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.