HUNTINGTON INGALLS INDUSTRIES, INC. (HII)

Huntington Ingalls Industries (HII), headquartered in Newport News, Virginia, is America's largest naval shipbuilder and a global all-domain defense partner, employing over 44,000 people and deriving roughly 81% of its 2023 revenue from the U.S. Navy, with total backlog of approximately $48.1 billion at year-end 2023. The company operates through three segments: Ingalls Shipbuilding in Pascagoula, Mississippi, which designs and constructs non-nuclear ships for the U.S. Navy and Coast Guard—including being the sole builder of amphibious assault ships (LHA/LPD classes) and national security cutters, and one of two builders of Arleigh Burke class (DDG 51) destroyers; Newport News Shipbuilding, which handles all nuclear ship design, construction, and refueling/overhaul work, serving as the exclusive U.S. builder of nuclear-powered aircraft carriers (Nimitz and Gerald R. Ford classes) and one of only two companies capable of building nuclear-powered submarines (Virginia class attack submarines and Columbia class ballistic missile submarines, both built via teaming agreements with Electric Boat/General Dynamics); and Mission Technologies, which provides C5ISR systems, AI/machine learning applications, cyber and electronic warfare capabilities, live/virtual/constructive training, unmanned autonomous systems, fleet sustainment services, and nuclear/environmental services through joint ventures supporting the Department of Energy. The company operates in a heavily regulated environment overseen by agencies including the DCAA, DCMA, Nuclear Regulatory Commission, and EPA, and competes primarily against General Dynamics in shipbuilding, and against firms like L3Harris, Leidos, and ManTech in Mission Technologies, while also sometimes competing with major primes such as Lockheed Martin, Northrop Grumman, and Boeing.

HII emphasizes human capital development through two apprentice schools (with over 14,400 graduates), extensive veteran hiring (6,700+), diversity and inclusion programs, and competitive benefits, with about 45% of its workforce covered by collective bargaining agreements; the company has not experienced a work stoppage in over 24 years at Newport News and 16 years at Ingalls. Key raw materials include steel, aluminum, and electronic components, sourced from third parties including government-approved suppliers, and the company faces risks related to environmental compliance, nuclear safety regulations, and reliance on U.S. Government contracting practices, including termination rights and cost allowability rules under the FAR and CAS.