HII Details Strategy to Increase Shipbuilding Pace for U.S. Navy
HII details operational gains and a 2026 growth target to accelerate U.S. Navy shipbuilding through workforce, infrastructure, and supply-chain expansion.
Rhea-AI Summary
HII (HII) outlined its strategy to boost shipbuilding throughput for the U.S. Navy during a House Appropriations Defense Subcommittee field hearing on Sept. 4, 2026.
The company reported a 14% year-over-year throughput increase in 2025 and is targeting a 15% increase in 2026, with about 40 ships in active construction or modernization at Ingalls and Newport News. The plan focuses on strengthening its workforce, modernizing shipyard infrastructure including use of physical AI, and expanding the maritime industrial base through a distributed shipbuilding strategy.
HII cited new collective bargaining agreements that provide competitive wage increases and a plan to outsource over two million work hours in 2026, a 178% increase from 2024, to raise throughput and support small and medium suppliers nationwide.
Positive
- Shipyard throughput +14% year-over-year in 2025, demonstrating recent operational improvement.
- Targeting a further 15% year-over-year throughput increase in 2026 to deliver ships to the U.S. Navy faster.
- Approximately 40 ships in active construction or modernization at Ingalls and Newport News shipyards.
- Plan to outsource more than two million work hours in 2026, a 178% increase from 2024, to expand capacity and support suppliers.
- New shipyard collective bargaining agreements with competitive wage increases aimed at retaining a highly skilled workforce.
Negative
- None.
News Explained
HII says its Newport News Shipbuilding Charleston Operations has been transformed from an underutilized facility into a growing advanced-manufacturing campus supporting the submarine industrial base and expanding skilled-trade opportunities.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 15 | Carrier trials completed | Positive | -2.9% | Acceptance sea trials completed for aircraft carrier John F. Kennedy |
| Aug 11 | Contract award | Positive | -0.9% | HII received a $2.2 billion surveillance and intelligence task order |
| Aug 11 | Autonomous vessel test | Positive | -0.9% | Autonomous ROMULUS USV project successfully completed a Defense Innovation Unit test |
| Aug 6 | Production agreements | Positive | +1.3% | HII signed robotics agreements involving up to $900 million of shipbuilding work |
| Aug 4 | Automation partnership | Positive | -1.7% | HII expanded welding automation through a partnership with HD Hyundai Heavy Industries |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
HII's recent positive operational and contract announcements were followed by negative 24-hour price reactions in four of five comparable events.
Key Terms
throughput technical
physical ai technical
collective bargaining agreements regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
SANTA CLARITA, Calif., Sept. 04, 2026 (GLOBE NEWSWIRE) -- HII’s (NYSE: HII) executive vice president of maritime systems and corporate strategy, Eric Chewning, reaffirmed the company’s commitment to strengthening the nation’s defense industrial base and revitalizing U.S. shipbuilding today during a House Appropriations Subcommittee on Defense field hearing. Speaking at College of the Canyons before subcommittee Chairman Rep. Ken Calvert, and members of the subcommittee, Chewning underscored the critical importance of a modernized workforce, upgraded shipyard infrastructure, and an expanded maritime industrial base.
“America’s ability to maintain peace and defend our interests depends on a strong, secure, and ready industrial base,” Chewning said. “At HII, our mission to deliver the world’s most powerful ships and all‑domain solutions is only possible because of our dedicated workforce and the continued support of Congress and the U.S. Navy.”
A photo accompanying this release is available at www.HII.com/newsroom.
Chewning, drawing on his experience as former Deputy Assistant Secretary of Defense for Industrial Policy, highlighted past reforms during the hearing to address strategic threats and bolster resilience. He also emphasized what HII is doing to accelerate throughput to meet national security demands.
“In 2025, throughput in our shipyards increased by
Chewning said HII’s strategy to increase throughput centers on three parts: hiring, teaching, and retaining a world-class workforce; modernizing shipbuilding infrastructure with capital investments such as the use of physical AI in shipbuilding; and expanding the maritime industrial base by growing HII’s supply chain and implementing a distributed shipbuilding strategy.
While describing the strategy, Chewing thanked Congress and the Navy for their support that enabled HII to enter into new shipyard collective bargaining agreements that provided competitive wage increases to maintain a highly skilled workforce. In addition, he highlighted HII’s ongoing industrial base expansion, including a plan to strategically outsource more than two million hours of work in 2026, a
Additional contributions to the revitalization discussion included progress at HII’s Newport News Shipbuilding Charleston Operations. Chewning pointed out the facility is a model for maritime industrial base revitalization. Working closely with the U.S. Navy, the State of South Carolina, and the Department of Defense’s Industrial Base Policy Office, HII was able to transform the underutilized facility into a growing advanced manufacturing campus supporting the submarine industrial base and expanding skilled trade opportunities.
“This is a powerful example of what can be achieved when industry, the federal government, and state partners work together to strengthen America’s maritime dominance,” said Chewning. “We thank the U.S. Navy, Congress, and specifically the House Defense Appropriations Subcommittee for their continued support and look forward to working together to ensure America’s maritime superiority for generations to come.”
You can read the full written testimony here: https://appropriations.house.gov/schedule/hearings/field-hearing-industrial-base-and-workforce-development-skilled-trades.
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 45,000 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/428157cc-ebb3-4012-9125-a5d5dcddbb78
