How Successful Delivery of Destroyer and Submarine Will Impact Huntington Ingalls Industries (HII) Investors

• Huntington Ingalls Industries recently achieved two major milestones, with its Ingalls Shipbuilding division completing final sea trials for the Arleigh Burke-class destroyer Ted Stevens (DDG 128) and its Newport News Shipbuilding division delivering the Virginia-class fast-attack submarine Massachusetts (SSN 798) to the U.S. Navy.
• These accomplishments underscore HII’s ongoing execution of key defense contracts and highlight its role in advancing next-generation naval capabilities for the U.S. military.
• We’ll explore how the successful delivery of both a destroyer and a submarine influences HII’s outlook for future naval contract momentum.

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Huntington Ingalls Industries Investment Narrative Recap

For shareholders, the central investment case in Huntington Ingalls Industries rests on sustained U.S. defense budget support and strong multi-year order flow. The successful sea trials for DDG 128 and delivery of the submarine Massachusetts reinforce HII’s execution ability but do not immediately change the short-term dependence on timely contract awards, which remains the key near-term catalyst and risk. These positive operational updates are encouraging, yet the business still faces exposure to potential program delays and federal budget shifts.

Among recent announcements, the delivery of the Virginia-class submarine Massachusetts stands out as a relevant milestone, directly related to HII’s momentum in fulfilling high-profile U.S. Navy orders. This achievement speaks to HII’s throughput improvement focus and underscores ongoing demand for its core shipbuilding capabilities, a critical factor in the company’s future revenue visibility and earnings consistency.

By contrast, investors should also be aware that continued political and fiscal uncertainty could ...

Read the full narrative on Huntington Ingalls Industries (it's free!)

Huntington Ingalls Industries is projected to achieve $13.6 billion in revenue and $785.0 million in earnings by 2028. This outlook is based on an expected annual revenue growth rate of 5.4% and a $260.0 million increase in earnings from the current $525.0 million.

Uncover how Huntington Ingalls Industries' forecasts yield a $331.89 fair value, a 9% upside to its current price.

Exploring Other Perspectives

Recent fair value estimates from eight Simply Wall St Community members span a wide US$180 to US$453 range. While these views vary, continued reliance on major contract awards could affect both future results and sentiment, so you might want to explore how others see the risks and opportunities ahead.

Explore 8 other fair value estimates on Huntington Ingalls Industries - why the stock might be worth as much as 48% more than the current price!

Build Your Own Huntington Ingalls Industries Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Huntington Ingalls Industries research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Huntington Ingalls Industries research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Huntington Ingalls Industries' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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