HII Begins Fabrication of Destroyer John F. Lehman (DDG 137)
Rhea-AI Summary
HII (NYSE:HII) announced the start of fabrication for the future USS John F. Lehman (DDG 137), a Flight III Arleigh Burke-class destroyer, at its Ingalls Shipbuilding division.
The company is using a distributed shipbuilding model with six partner yards and plans to outsource over 2.5 million shipbuilding hours in 2026.
Positive
- Fabrication start of Flight III destroyer DDG 137 at Ingalls Shipbuilding
- Six partner yards across TX, LA, MS and FL producing structural units
- Distributed shipbuilding model expands capacity beyond traditional labor market
- Ingalls has five Flight III destroyers under construction
- Seven additional Flight III destroyers in pre-planning and material procurement
- Plan to outsource over 2.5 million shipbuilding hours in 2026
Negative
- None.
News Market Reaction – HII
In the Jul 1 session, HII declined 0.33%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jun 26 | Facility opening | Positive | +1.0% | Opened new Carrier Refueling Overhaul Workcenter to support carrier RCOH work. |
| Jun 22 | Navy contract win | Positive | -2.8% | Awarded $418M, five-year IDIQ to support Navy fleet operational readiness. |
| Jun 16 | Product delivery | Positive | -0.4% | Delivered first REMUS 130 UUV, new evolution of REMUS 100 series. |
| Jun 15 | Tech event | Positive | -0.4% | Hosted DefenseTech LIVE 2026 event showcasing defense technology and innovation. |
| Jun 08 | Partner capacity | Positive | -0.1% | Partner Bayou Metals launched dedicated line to accelerate ROMULUS USV production. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent operational and contract news has more often seen flat-to-negative next-day moves than sustained gains.
Key Terms
distributed shipbuilding technical
an/spy-6(v)1 technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
PASCAGOULA, Miss., July 01, 2026 (GLOBE NEWSWIRE) -- HII’s (NYSE: HII) Ingalls Shipbuilding division began fabrication of the future USS John F. Lehman (DDG 137) Monday, marking the official start of construction on the Navy’s newest Flight III Arleigh Burke‑class destroyer.
The milestone builds upon early construction gains enabled by HII’s distributed shipbuilding model, which expands capacity by shifting fabrication of major structural units from Pascagoula to partner yards beyond the company’s traditional labor market that have available workforce and production space. For DDG 137, six partners across Texas, Louisiana, Mississippi and Florida are producing structural units, allowing Ingalls to distribute work across the supply chain.
“Our Ingalls shipbuilders have worked hard to reach fabrication start on DDG 137, and by focusing our teams and facilities on final assembly and integration, our distributed shipbuilding partners are enabling us to grow the Flight III fleet,” said Chris Brown, Ingalls Shipbuilding DDG 51 program manager. “We know the U.S. Navy is counting on us to deliver highly capable ships, and this industry-wide effort is helping us meet that responsibility with urgency.”
DDG 137 is the seventh Flight III destroyer to be constructed at Ingalls. Flight III ships represent 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.
Photos and a video accompanying this release are available at: https://www.hii.com/news/hii-begins-fabrication-of-destroyer-john-f-lehman-ddg-137.
Ingalls currently has five Flight III destroyers under construction and seven more in early pre-planning and material procurement phases. As part of its distributed production strategy, HII plans to outsource more than 2.5 million hours of shipbuilding work in 2026, driving work to qualified yards nationwide and supporting long‑term industrial base resiliency.
For more information about the Flight III Arleigh Burke-class destroyers under construction at HII’s Ingalls Shipbuilding division visit, https://www.hii.com/capabilities/arleigh-burke-flight-iii.
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:
Kimberly K. Aguillard
Kimberly.K.Aguillard@hii-co.com
228-355-5663
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/305f38c1-6dac-4914-bf34-5ee272ee073a
