Flight III Destroyer Ted Stevens (DDG 128) Sails Away from HII’s Ingalls Shipbuilding
Rhea-AI Summary
HII (NYSE: HII) announced that the Flight III Arleigh Burke-class destroyer Ted Stevens (DDG 128) departed Ingalls Shipbuilding for Norfolk ahead of commissioning in Whittier, Alaska. DDG 128 is Ingalls’ second Flight III delivery and features the AN/SPY-6(V)1 radar and Aegis Baseline 10 combat system.
Ingalls has five additional Flight III destroyers under construction, seven in pre-planning, and plans to outsource more than 2.5 million hours of shipbuilding work in 2026 to expand its assembly network.
AI-generated analysis. Not financial advice.
Positive
- Second Flight III destroyer delivered by Ingalls
- AN/SPY-6(V)1 radar and Aegis Baseline 10 outfitted on DDG 128
- Five Flight III destroyers currently under construction at Ingalls
- Plan to outsource 2.5 million hours in 2026 to expand assembly network
Negative
- None.
Key Figures
Market Reality Check
Peers on Argus
While HII is down 1.51%, several defense peers are also lower: DRS -1.54%, AVAV -3.5%, KTOS -7.38%, and WWD -3.62%, suggesting broader sector weakness rather than a reaction uniquely tied to this destroyer delivery news.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| May 05 | Q1 2026 earnings | Positive | -10.3% | Revenue growth to $3.1B, $149M net earnings, guidance reaffirmed, but shares fell. |
| May 01 | Workforce initiative news | Positive | +0.8% | Signing Day celebrating 49 Shipbuilder Academy graduates joining Ingalls workforce. |
| Apr 29 | Dividend declaration | Positive | +0.2% | Quarterly cash dividend of $1.38 per share announced with June 12, 2026 pay date. |
| Apr 28 | Navy contract award | Positive | +0.2% | $283M FF(X) frigate lead yard support contract and $1B+ yard modernization noted. |
| Apr 27 | Defense innovation deal | Positive | -0.3% | Defense Innovation Unit contract for submarine TTLR system to deploy REMUS UUVs. |
Recent positive contract and operational news often aligned with modest gains, while the latest earnings release saw a notable negative reaction despite growth and reaffirmed guidance.
Over the past weeks, HII reported Q1 FY2026 results with $3.1B revenue, $149M net earnings, and reaffirmed free cash flow guidance of $500–$600M, yet the stock fell 10.25%. Operational wins included a $283M frigate contract and a workforce “Signing Day” event, both coinciding with small gains. A recent quarterly dividend of $1.38 per share and new undersea warfare contracts underscore steady naval program momentum into late April and early May 2026.
Market Pulse Summary
This announcement highlights the sail-away of Flight III destroyer Ted Stevens (DDG 128) and underscores Ingalls’ growing Flight III workload, with 5 additional ships under construction and 7 in pre-planning. Combined with a reported backlog of $54.0B and recent Navy contracts, it reinforces HII’s role in U.S. naval modernization. Investors may watch execution on distributed shipbuilding, outsourcing of 2.5 million work hours, and future program awards.
Key Terms
arleigh burke-class technical
aegis baseline 10 combat system technical
AI-generated analysis. Not financial advice.
PASCAGOULA, Miss., May 08, 2026 (GLOBE NEWSWIRE) -- The Flight III Arleigh Burke-class guided missile destroyer Ted Stevens (DDG 128) departed HII’s (NYSE: HII) Ingalls Shipbuilding division today enroute to its homeport in Norfolk, Virginia ahead of its future commissioning in Whittier, Alaska.
“The sail-away of Ted Stevens reflects the strong momentum of our Flight III destroyer deliveries and the team’s work to deliver the most capable and combat ready ships to the fleet,” said Chris Brown, Ingalls Shipbuilding DDG 51 program manager. “Seeing DDG 128 depart Ingalls is a proud moment for us all, and we are honored to support the Navy with a ship that will strengthen U.S. maritime security for decades to come.”
DDG 128 is the second Flight III Arleigh Burke-class destroyer built and delivered by Ingalls. The ship represents the next generation of surface combatants, featuring the Flight III AN/SPY-6(V)1 radar system and the Aegis Baseline 10 combat system designed to counter evolving threats well into the 21st century.
Ingalls Shipbuilding currently has five additional Flight III destroyers under construction, with seven more in early pre-planning and material procurement phases. To increase throughput and meet growing demand from the Navy, Ingalls is executing a distributed shipbuilding initiative, partnering with shipyards and fabricators beyond the company’s traditional labor market to improve schedule performance across all programs.
Photos and video accompanying this release are available at: https://www.hii.com/news/flight-iii-destroyer-ted-stevens-ddg-128-sails-aways-from-hiis-ingalls-shipbuilding.
In 2026, HII plans to outsource more than 2.5 million hours of shipbuilding work, while expanding its structural assembly network of assembly partner companies, enabling more work to be completed outside the shipyard before final assembly.
To date, Ingalls has delivered 36 Arleigh Burke-class destroyers, including the first Flight III, USS Jack H. Lucas (DDG 125), and Ted Stevens (DDG 128). Flight III destroyers currently under construction include Jeremiah Denton (DDG 129), George M. Neal (DDG 131), Sam Nunn (DDG 133), Thad Cochran (DDG 135), and John F. Lehman (DDG 137). Ships in pre-planning include Telesforo Trinidad (DDG 139), Ernest E. Evans (DDG 141), Charles French (DDG 142), Richard J. Danzig (DDG 143), Intrepid (DDG 145), Robert Kerrey (DDG 146), and Ray Mabus (DDG 147).
About HII
HII is America’s largest shipbuilder, delivering the world’s most powerful ships and all-domain mission technologies, including unmanned systems, to U.S. and allied defense customers. HII is the largest producer of unmanned underwater vehicles for the U.S. Navy and the world.
With a more than 140-year history of advancing U.S. national security, HII builds and integrates defense capabilities extending from the core fleet to C6ISR, AI/ML, EW and synthetic training. Headquartered in Virginia, HII’s workforce is 44,000 strong. For more information, visit:
- HII on the web: https://www.HII.com/
- HII on Facebook: https://www.facebook.com/TeamHII
- HII on X: https://www.twitter.com/WeAreHII
- HII on Instagram: https://www.instagram.com/WeAreHII
- HII on LinkedIn: https://www.linkedin.com/company/wearehii
Contact:
Danny Hernandez
Danny.J.Hernandez@hii-co.com
202-264-7143
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/dc385406-e21c-4df4-93f7-555fcf5c4ebe
