HII Begins Fabrication of Destroyer John F. Lehman (DDG 137)

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.

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.

Argus Jul 1 session

-0.33% close to close Open Argus

Details

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.

Market Context

This announcement adds another Flight III destroyer and over 2.5 million outsourced work hours to HI...

Analysis

This announcement adds another Flight III destroyer and over 2.5 million outsourced work hours to HII’s pipeline, reinforcing backlog visibility. Investors may weigh this against recent insider net selling of 3,500 shares and watch execution of the distributed model.

Key Figures

Distributed partners: 6 partners Flight III destroyer count: 7th Flight III destroyer Under construction: 5 Flight III destroyers +5 more

Distributed partners

6 partners

Producing structural units for DDG 137 across TX, LA, MS and FL

Flight III destroyer count

7th Flight III destroyer

DDG 137 is seventh Flight III destroyer constructed at Ingalls

Under construction

5 Flight III destroyers

Number currently under construction at Ingalls

Pre-planning phase

7 Flight III destroyers

In early pre-planning and material procurement phases

Outsourced work 2026

2.5 million hours

Shipbuilding work HII plans to outsource in 2026

Short interest

2.07%

Short interest as of 2026-06-15 settlement date

Insider sale

3,500 shares

Sale by Ex VP & Chief HR Officer on 2026-05-28

Sale price

$319.581 per share

Price for 3,500 shares sold by Edmond E. Hughes Jr.

Historical Context

5 past events · Latest: Jun 26

5 events

1. Jun 26

   Facility opening

   24h Move

   +1.0%

   Opened new Carrier Refueling Overhaul Workcenter to support carrier RCOH work.

2. Jun 22

   Navy contract win

   24h Move

   -2.8%

   Awarded $418M, five-year IDIQ to support Navy fleet operational readiness.

3. Jun 16

   Product delivery

   24h Move

   -0.4%

   Delivered first REMUS 130 UUV, new evolution of REMUS 100 series.

4. Jun 15

   Tech event

   24h Move

   -0.4%

   Hosted DefenseTech LIVE 2026 event showcasing defense technology and innovation.

5. Jun 08

   Partner capacity

   24h Move

   -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.

Key Terms

distributed shipbuilding, an/spy-6(v)1

2 terms

distributed shipbuilding technical

"HII’s distributed shipbuilding model, which expands capacity by shifting fabrication"

Distributed shipbuilding is a construction approach where different parts or modules of a vessel are built at multiple shipyards or supplier sites and later brought together for final assembly. For investors, it matters because spreading production can lower capital needs, speed delivery, and tap specialized suppliers, but it also raises coordination, quality and transport risks that can affect costs, timelines and profit margins — like assembling a car from components made at factories around the world.

an/spy-6(v)1 technical

"featuring the Flight III AN/SPY-6(V)1 radar system and the Aegis Baseline 10"

AN/SPY-6(V)1 is a modern naval radar system mounted on warships to detect and track aircraft, missiles and surface targets at long range. It uses many small antenna elements to steer its view quickly without moving parts, giving faster, more reliable detection and targeting. For investors, it matters because government orders, upgrades and long-term support for such advanced systems drive revenue for defense suppliers, affect shipbuilding programs and reflect technological advantage and export potential.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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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

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did HII (NYSE:HII) announce about the destroyer John F. Lehman (DDG 137) on July 1, 2026?

HII announced it has begun fabrication of the future USS John F. Lehman (DDG 137), marking the official construction start. According to HII, this Flight III Arleigh Burke-class destroyer is being built at its Ingalls Shipbuilding division in Pascagoula, Mississippi using a distributed shipbuilding model.

What is the Flight III designation for HII’s DDG 137 destroyer and why is it important for investors?

DDG 137 is a Flight III Arleigh Burke-class destroyer featuring upgraded radar and combat systems. According to HII, Flight III ships include the AN/SPY-6(V)1 radar and Aegis Baseline 10 combat system, designed to counter evolving threats well into the 21st century.

How is HII using distributed shipbuilding partners for DDG 137 (HII stock)?

HII is shifting fabrication of major structural units for DDG 137 to six partner yards in Texas, Louisiana, Mississippi and Florida. According to HII, this distributed shipbuilding approach expands capacity by leveraging workforce and production space beyond its traditional labor market.

How many Flight III Arleigh Burke-class destroyers is HII’s Ingalls Shipbuilding currently working on?

Ingalls Shipbuilding currently has five Flight III destroyers under construction and seven more in early pre-planning and material procurement. According to HII, DDG 137 is the seventh Flight III destroyer to be constructed at Ingalls as part of the growing Flight III fleet.

What does HII’s plan to outsource more than 2.5 million shipbuilding hours in 2026 mean?

HII plans to outsource over 2.5 million hours of shipbuilding work in 2026 to qualified yards nationwide. According to HII, this supports its distributed shipbuilding strategy and aims to strengthen long-term industrial base resiliency across the naval shipbuilding supply chain.

How might HII’s distributed shipbuilding model for DDG 137 impact its production capacity?

The distributed shipbuilding model is intended to expand production capacity by using external partner yards for structural fabrication. According to HII, this lets Ingalls focus its facilities on final assembly and integration while partners handle major units, potentially supporting greater Flight III throughput.