Will Expanded US–Korea Shipbuilding Pact with Hyundai Change Huntington Ingalls Industries' (HII) Narrative?

• HD Hyundai Heavy Industries and Huntington Ingalls Industries signed a memorandum of agreement at the APEC 2025 forum to expand US–Korea cooperation in shipbuilding, targeting joint Navy contracts, technology collaboration, and enhanced in-theater support for the US Navy.
• This broad partnership integrates advanced technologies like artificial intelligence, robotics, and automation, highlighting the growing internationalization and innovation focus in maritime defense manufacturing.
• We'll explore how the expanded US–Korea alliance, centered on advanced shipbuilding technology, reshapes Huntington Ingalls' investment narrative.

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Huntington Ingalls Industries Investment Narrative Recap

Huntington Ingalls Industries (HII) appeals to investors who believe in the long-term strength of US defense spending, robust government contracts, and the value of scale and expertise in naval shipbuilding. The recent partnership with HD Hyundai Heavy Industries, while a positive step for technology and capability, is not expected to materially alter the near-term outlook for contract timing, the biggest short-term catalyst, or reduce the risk of schedule slippage and cost overruns impacting margins.

Amid a series of updates, HII’s recent 2.2% dividend increase stands out, signaling the company’s intent to return value to shareholders and reflecting confidence in cash generation even as partnerships and supply chain initiatives evolve. While collaborative moves may strengthen the business longer term, investors still face...

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

Huntington Ingalls Industries is projected to reach $13.6 billion in revenue and $785.0 million in earnings by 2028. This scenario assumes annual revenue growth of 5.4% and an increase in earnings of $260.0 million from current earnings of $525.0 million.

Uncover how Huntington Ingalls Industries' forecasts yield a $296.44 fair value, in line with its current price.

Exploring Other Perspectives

Eight individual fair value estimates from the Simply Wall St Community range from US$180 to US$324 per share, reflecting a wide spread in investor expectations. This broad spectrum contrasts with the current emphasis on contract timing risk and highlights how market participants weigh revenue visibility and defense funding differently.

Explore 8 other fair value estimates on Huntington Ingalls Industries - why the stock might be worth as much as 8% 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 2 important warning signs 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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