Huntington Ingalls Industries (HII) Is Up 5.6% After Groundbreaking South Korea Shipbuilding Alliance Announcement

• HD Hyundai Heavy Industries and Huntington Ingalls Industries announced in late October 2025 that they have signed a memorandum of agreement to co-develop and construct the U.S. Navy’s next-generation logistics ships, marking the first time a South Korean shipyard is participating in a U.S. military shipbuilding project.
• This collaboration expands Huntington Ingalls Industries' international reach and enhances bilateral cooperation, opening access to a multi-billion dollar market while supporting the revitalization of the U.S. naval industrial base.
• We'll examine how this cross-border shipbuilding alliance shapes Huntington Ingalls Industries' investment narrative, particularly its international expansion and market positioning.

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Huntington Ingalls Industries Investment Narrative Recap

Owning shares in Huntington Ingalls Industries requires confidence in sustained defense spending and the company’s ability to secure, execute, and grow major shipbuilding and technology contracts, especially amid heightened geopolitical tensions. The recent partnership with Hyundai Heavy Industries to pursue the U.S. Navy’s next-generation logistics ships may improve Huntington Ingalls’ strategic long-term market position, but it does not materially change the near-term importance of timely contract awards for submarine programs, which remain the single largest driver of revenue visibility and the biggest risk if delayed.

The recent completion of autonomous system testing aboard HII’s unmanned surface vessel with Shield AI closely aligns with company catalysts, growing demand for advanced, unmanned maritime solutions, not only enhancing its innovation profile, but underpinning future revenue opportunities within high-growth defense technology programs.

However, investors should not overlook the risk of potential contract delays on major submarine programs, since...

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

Huntington Ingalls Industries’ outlook anticipates $13.6 billion in revenue and $785.0 million in earnings by 2028. This scenario assumes 5.4% annual revenue growth and a $260.0 million increase in earnings from the current $525.0 million level.

Uncover how Huntington Ingalls Industries' forecasts yield a $296.44 fair value, a 6% downside to its current price.

Exploring Other Perspectives

Retail estimates from the Simply Wall St Community span US$180 to US$413.96 across 8 different forecasts. Yet, as defense budgets support multi-year order flow, contract timing remains a central factor for future cash flow stability.

Explore 8 other fair value estimates on Huntington Ingalls Industries - why the stock might be worth as much as 31% 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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