Ticker: $HII
YTD Return: +21%
Sector: Defense, Aerospace, Shipbuilding
America’s Only Builder of Nuclear-Powered Aircraft Carriers
Huntington Ingalls Industries (HII) is not just any defense contractor — it’s the sole manufacturer of nuclear-powered aircraft carriers in the United States, and the largest military shipbuilder in the country. That unmatched position alone makes it a strategic asset for the U.S. military — and a compelling long-term opportunity for investors.
With rising geopolitical tensions and a renewed push for military superiority under the new Trump administration, HII is well-positioned for years of government-backed growth.
Strong Political Tailwinds: Trump’s Focus on Naval Power
The return of a Trump presidency has reignited focus on strengthening the U.S. Navy to counter threats from China and other emerging military powers.
In early 2025:
- Trump introduced a national plan to rebuild American shipbuilding capacity
- Issued an executive order in April titled “Restoring America’s Maritime Dominance”
- Prioritized spending on aircraft carriers, submarines, and surface ships for the U.S. Navy
Huntington Ingalls is the #1 direct beneficiary of this policy pivot.
Key Programs Driving Growth
HII isn’t just about ships. Its Mission Technologies division is expanding into future-focused capabilities like:
- AI-driven autonomous systems
- Cybersecurity & underwater drones (SUUVs) like the Lionfish
- Advanced ship classes: Gerald R. Ford carriers, San Antonio-class LPDs, Arleigh Burke destroyers
$48 Billion in Backlog — and Growing
HII’s current contract backlog exceeds $48 billion — a record figure that gives strong earnings visibility. And that’s just the start:
“We expect another $50 billion in awards over the next 20 months.” — HII Executive Team
These contracts span across nuclear submarines, carriers, support ships, and next-gen maritime systems.
New Facility = 20% Production Capacity Boost
In Q1 2025, HII acquired a new facility near Charleston, SC. This expansion is expected to:
- Increase total capacity by 20% compared to 2024
- Enable faster project delivery and revenue acceleration
- Prepare HII for scale as Navy budgets rise
Financial Snapshot (Q1 2025)
| Metric | Value |
|---|---|
| Revenue | $2.7B (–2.5% YoY) |
| EPS | $3.97 (beat estimates) |
| Backlog | $48B+ |
| Expected New Awards (20 mos) | $50B+ |
| YTD Share Price Return | +21% |
Despite slightly lower YoY revenue due to timing on major programs, margins improved, and EPS beat Wall Street expectations.
Dividend & Value Thesis
- HII continues to grow its dividend, making it attractive to income investors
- Trading at a reasonable valuation relative to its future earnings pipeline
- One of the most stable plays in a volatile geopolitical landscape
“If you want exposure to U.S. defense manufacturing — HII is unmatched in scope, scale, and strategic value.”
Huntington Ingalls is a pure-play American industrial defense asset, backed by a political and national security mandate. With:
- $100B+ in expected military shipbuilding demand
- Exclusive carrier-building capabilities
- Expansion into AI and unmanned systems
- Growing dividend and new infrastructure investment
We believe $HII is a strong buy for long-term investors seeking exposure to defense, manufacturing, and policy-driven tailwinds.
Frequently Asked Questions (FAQ)
Is Huntington Ingalls Industries (HII) a good long-term investment?
Yes. HII holds a unique position as the only U.S. manufacturer of nuclear-powered aircraft carriers and has a $48B backlog with projected contracts worth another $50B+. It benefits from defense spending and rising geopolitical tensions.
How is HII impacted by the Trump administration?
President Trump has prioritized shipbuilding and naval expansion as part of his national defense policy. Executive orders and budget increases directly support companies like HII, which specialize in U.S. Navy ships and advanced defense systems.
What types of military vessels does HII build?
HII builds Gerald R. Ford-class aircraft carriers, Virginia-class submarines (with partners), Arleigh Burke-class destroyers, and San Antonio-class amphibious ships. These vessels are vital to U.S. maritime defense capabilities.
Is HII involved in advanced technologies?
Yes. Through its Mission Technologies division, HII develops underwater drones, AI-powered autonomous naval systems, and cybersecurity tools, expanding its capabilities beyond traditional shipbuilding.
Does HII pay dividends?
Yes. HII pays a quarterly dividend and has a track record of consistent dividend growth, making it appealing for long-term, income-focused investors in the defense sector.
At ProfitsForce, we go beyond the headlines. Our team breaks down defense, energy, AI, and infrastructure trends so you can invest with conviction — not noise.
If you’re looking for long-term stock picks backed by data, strategy, and real-world relevance, ProfitsForce is your edge in this market.
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