Huntington Ingalls' Surprising Rally

Huntington Ingalls Industries (HII) - Get Huntington Ingalls Industries Inc. Report

Why Huntington Ingalls Stock is Up Today

Published: Apr 11, 2025 9:30 a.m. ET

Huntington Ingalls Industries (NYSE: HII) is trading higher today after the company announced a major contract win. The leading shipbuilder and naval architect has secured a $1.4 billion contract from the U.S. Navy to build a new class of amphibious assault ships.

The contract, which was awarded to Huntington Ingalls' Ingalls Shipbuilding division, is for the construction of two LPD 32-class amphibious assault ships. The ships will be built at the company's facility in Pascagoula, Mississippi, and are expected to be delivered to the Navy by 2029.

This contract is a significant win for Huntington Ingalls, as it demonstrates the company's continued ability to deliver high-quality ships to the U.S. Navy. The contract also reflects the Navy's ongoing commitment to modernizing its amphibious assault ship fleet, which is critical to its ability to project power around the world.

Huntington Ingalls' stock is up over 3% in early trading today, as investors react positively to the company's contract win. The stock has been trading near its 52-week high in recent weeks, and this contract win could help push it even higher.

The company's Ingalls Shipbuilding division has a long history of building high-quality ships for the U.S. Navy, and this contract is a testament to the division's expertise and capabilities. The contract also reflects the Navy's ongoing commitment to modernizing its amphibious assault ship fleet, which is critical to its ability to project power around the world.

In addition to the contract win, Huntington Ingalls is also expected to benefit from the ongoing growth of the defense industry. The company's shipbuilding and nuclear services divisions are well-positioned to benefit from the increased spending on defense that is expected in the coming years.

Overall, Huntington Ingalls' contract win is a significant development for the company and its investors. The contract reflects the company's continued ability to deliver high-quality ships to the U.S. Navy, and it could help push the company's stock even higher in the coming days.