HII is Awarded Option Year Contract for U.S. Navy Lionfish Unmanned Undersea Vehicle Production

Rhea-AI Summary

HII (HII) received an option year production contract for the U.S. Navy’s Lionfish small unmanned undersea vehicle, based on the REMUS 300 platform. Lionfish supports mine countermeasures, ISR, anti-submarine and electronic warfare missions.

The five-year program could reach up to 200 vehicles with a total contract value of over $347 million. By the end of 2025, 42 Lionfish vehicles had been completed at HII’s Pocasset facility. Lionfish is described as the Navy’s first OTA prototype-to-production transition and the first and only cyber-compliant unmanned underwater vehicle currently in production for the service.

Positive

• Lionfish program may scale to as many as 200 vehicles over five years
• Total Lionfish contract value could exceed $347 million
• 42 Lionfish vehicles completed by end of 2025 at Pocasset facility
• First U.S. Navy OTA prototype-to-full-production transition for unmanned undersea vehicle
• Only cyber-compliant unmanned underwater vehicle currently in production for the U.S. Navy
• More than 700 REMUS vehicles delivered to over 30 countries; 90% still active

Negative

• None.

News Market Reaction – HII

+0.89%

+0.89% Session close to close

In the Jul 6 session, HII gained 0.89%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The key takeaway is HII securing an option-year production award for the Lionfish SUUV program, whic...

Analysis

The key takeaway is HII securing an option-year production award for the Lionfish SUUV program, which could reach over $347 million and up to 200 vehicles. This builds on a REMUS fleet of more than 700 units, though investors may still weigh contract concentration and broader defense spending trends.

Key Figures

Total contract value: $347 million Program length: 5 years Program vehicle ceiling: 200 vehicles +5 more

8 metrics

Total contract value $347 million Potential value of five-year Lionfish SUUV program

Program length 5 years Duration of Lionfish SUUV program

Program vehicle ceiling 200 vehicles Maximum scale of Lionfish SUUV production program

Production milestone 42 vehicles 42nd Lionfish vehicle completed by end of 2025

REMUS vehicles delivered more than 700 REMUS family deliveries worldwide

Customer countries over 30 Countries operating REMUS vehicles

NATO customers 14 members NATO countries using REMUS vehicles

Active REMUS systems more than 90% Share of REMUS systems still in active service

Historical Context

5 past events · Latest: Jul 01 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jul 01	Destroyer fabrication start	Positive	-0.3%	Began fabrication of Flight III Arleigh Burke destroyer John F. Lehman.
Jun 26	Facility opening	Positive	+1.0%	Opened Carrier Refueling Overhaul Workcenter to support carrier RCOH work.
Jun 22	Fleet readiness contract	Positive	-2.8%	Won $418M five-year IDIQ to support Navy fleet operational readiness.
Jun 16	REMUS 130 delivery	Positive	-0.4%	Delivered first REMUS 130 unmanned underwater vehicle to a U.S. ally.
Jun 15	DefenseTech LIVE event	Positive	-0.4%	Hosted DefenseTech LIVE 2026 event showcasing defense tech and innovation themes.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent HII contract and program announcements have often seen share moves that diverged from the generally positive tone of the news.

Key Terms

other transaction authority (ota), unmanned undersea vehicle, intelligence, surveillance and reconnaissance (isr), electronic warfare, +2 more

6 terms

other transaction authority (ota) regulatory

"transition from an Other Transaction Authority (OTA) prototype effort to full-scale"

Other Transaction Authority (OTA) is a special buying method used by government agencies to award research and development deals and prototypes outside standard procurement rules, designed to move faster and attract companies that don’t normally sell to the government. For investors, OTA awards can accelerate revenue and partnership opportunities for a company but often come with less predictable contract terms and no guarantee of follow-on work, so they signal potential upside with added uncertainty.

unmanned undersea vehicle technical

"the Lionfish small unmanned undersea vehicle (SUUV)."

An unmanned undersea vehicle (UUV) is a robotic craft that operates below the water’s surface without a human onboard, guided either by pre-programmed instructions or remote control. Like a self-driving car for the ocean, UUVs gather data, inspect infrastructure, map seabeds, or carry payloads; investors care because they can lower operating costs, enable new services (surveying, defense, oil and gas, research) and create revenue or risk for companies tied to maritime technology and services.

intelligence, surveillance and reconnaissance (isr) technical

"supports mine countermeasures, intelligence, surveillance and reconnaissance (ISR),"

Intelligence, surveillance and reconnaissance (ISR) involves gathering information about surroundings, activities, or objects to understand what is happening around them. It’s like using cameras, sensors, or other tools to monitor and collect data, helping decision-makers see potential risks or opportunities. For investors, ISR insights can influence strategic choices by providing a clearer picture of market conditions, emerging trends, or potential threats.

electronic warfare technical

"anti-submarine warfare, and electronic warfare operations."

Electronic warfare involves using technology to disrupt, deceive, or disable an opponent’s electronic systems, such as communication networks, radar, or navigation signals. It is like jamming or scrambling a radio or GPS to prevent others from receiving clear information. For investors, it matters because advances in electronic warfare can impact military capabilities, influence global security, and affect the stability of markets and technological investments.

open-architecture technical

"The REMUS 300 platform is a modular, open-architecture SUUV"

Open-architecture describes a system or platform built to work with products and services from many different providers rather than only one supplier. For investors, it matters because open designs tend to attract more partners and customers, encourage innovation and price competition, and make it easier for a company to add new features or switch vendors — all factors that can boost revenue potential and reduce reliance on a single source of growth or supply.

dual-use technical

"demonstrating accelerated application of dual-use commercial technologies"

"Dual-use" describes goods, technology, or information that can be used for both civilian and military purposes. For example, a piece of equipment designed for industrial use might also be adapted for military applications. This makes such items a concern for investors because they can be subject to strict regulations or restrictions, affecting their availability and value across different markets.

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

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POCASSET, Mass., July 06, 2026 (GLOBE NEWSWIRE) -- HII, a global leader in autonomous unmanned maritime systems, has been awarded an option year production contract for the U.S. Navy’s next-generation program of record, the Lionfish small unmanned undersea vehicle (SUUV). Lionfish is based on HII’s commercial REMUS 300 platform, originally developed as part of a rapid prototyping initiative in collaboration with the U.S. Navy and the Defense Innovation Unit (DIU).

Designed to address a broad range of undersea warfare missions, Lionfish supports mine countermeasures, intelligence, surveillance and reconnaissance (ISR), anti-submarine warfare, and electronic warfare operations.

This latest option year contract continues to build the momentum of the Lionfish program, which marked a major production milestone at the close of 2025 with the completion of the 42nd Lionfish vehicle at HII’s Pocasset facility. The five-year program could scale to as many as 200 vehicles, with a total contract value exceeding $347 million.

“The decision to exercise this option year production of the Lionfish program reflects the U.S. Navy’s confidence in the platform’s operational performance, reliability and adaptability,” said Duane Fotheringham, president of the Unmanned Systems group in HII’s Mission Technologies division. “Our team remains focused on delivering advanced autonomous systems that provide sailors and marines with critical undersea warfare capabilities in support of evolving mission requirements.”

An image accompanying this release is available at: https://www.hii.com/news/hii-is-awarded-option-year-contract-for-us-navy-lionfish-unmanned-undersea-vehicle-production/.

Following the selection of HII’s REMUS 300 platform for Lionfish, the program has been recognized as the U.S. Navy’s first successful transition from an Other Transaction Authority (OTA) prototype effort to full-scale production, demonstrating accelerated application of dual-use commercial technologies in support of operational U.S. Department of Defense capabilities. Lionfish is also the first and only cyber-compliant unmanned underwater vehicle currently in production for the U.S. Navy.

The REMUS 300 platform is a modular, open-architecture SUUV engineered for multi-mission adaptability. Its open-architecture design enables rapid payload integration and future technology upgrades, allowing operators to adapt the system to evolving mission needs while maintaining cost efficiency over the platform lifecycle.

The REMUS family of unmanned underwater vehicles has been field-proven across global naval operations. HII has delivered more than 700 REMUS vehicles to over 30 countries, including 14 NATO members. More than 90% of REMUS systems delivered during the past 25 years remain in active service today.

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:

Greg McCarthy
(202) 264-7126
gregory.j.mccarthy@hii-co.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/5a5a9fec-c328-41b6-bd66-562063d1842d

FAQ

What did HII (HII) announce about the Lionfish unmanned undersea vehicle contract on July 6, 2026?

HII announced an option year production contract for the U.S. Navy’s Lionfish small unmanned undersea vehicle. According to HII, Lionfish is based on the REMUS 300 platform and supports mine countermeasures, ISR, anti-submarine warfare, and electronic warfare missions for evolving Navy requirements.

What is the total potential value and scale of HII’s Lionfish SUUV program (HII)?

The Lionfish program could reach a total contract value of more than $347 million. According to HII, the five-year program may scale to as many as 200 small unmanned undersea vehicles, reflecting extended production potential if all options are exercised.

How many Lionfish unmanned undersea vehicles has HII produced so far for the U.S. Navy?

HII reports completing the 42nd Lionfish vehicle by the end of 2025 at its Pocasset facility. According to HII, this marked a production milestone for the program and supports ongoing option-year production under the Navy’s next-generation Lionfish small unmanned undersea vehicle effort.

Why is HII’s Lionfish REMUS 300 platform notable for U.S. Navy unmanned undersea systems?

Lionfish is described as the Navy’s first successful OTA prototype transition to full-scale production. According to HII, it is also the first and only cyber-compliant unmanned underwater vehicle currently in production, using a modular, open-architecture REMUS 300 design for multi-mission adaptability.

What missions can HII’s Lionfish small unmanned undersea vehicle (HII) perform for the U.S. Navy?

Lionfish is designed for mine countermeasures, ISR, anti-submarine warfare, and electronic warfare operations. According to HII, the REMUS 300-based system uses a modular, open-architecture design that supports rapid payload integration and future upgrades for varied undersea warfare mission needs.

How does the Lionfish contract relate to HII’s broader REMUS unmanned underwater vehicle portfolio?

Lionfish builds on HII’s commercial REMUS 300 platform and long-running REMUS portfolio. According to HII, more than 700 REMUS vehicles have been delivered to over 30 countries, with over 90% of systems from the past 25 years still in active service.