HII Selected to Compete on $25.4 Billion Microelectronics Multi-Award Contract

Rhea-AI Summary

HII (NYSE: HII) said its Mission Technologies division was named among 12 firms on the 10-year, $25.4 billion Advanced Technology Support Program V (ATSP5) multiple-award IDIQ contract awarded by the Defense Microelectronics Activity on Jan 20, 2026.

ATSP5 provides rapid, flexible access across the U.S. Department of Defense and civilian agencies for advanced microelectronics, engineering, prototyping, modernization and anti-obsolescence solutions. HII noted its engineers will support hardware and software workstreams including reverse engineering, assurance, prototyping, integration, testing and limited production using HII-developed tools and a model-based approach.

Positive

• Named to a 10-year, $25.4 billion ATSP5 multiple-award IDIQ
• Eligible to provide advanced microelectronics and software services across DoD and federal agencies
• Leverages >20 years of Mission Technologies engineering experience

Negative

• ATSP5 is a multiple-award IDIQ, so inclusion does not guarantee contract task orders or revenue

News Market Reaction – HII

-2.42%

1 alert

-2.42% News Effect

On the day this news was published, HII declined 2.42%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

ATSP5 contract ceiling: $25.4 billion ATSP5 duration: 10 years Awarded companies: 12 companies +5 more

8 metrics

ATSP5 contract ceiling $25.4 billion Advanced Technology Support Program V multi-award IDIQ

ATSP5 duration 10 years Performance period for Advanced Technology Support Program V

Awarded companies 12 companies Number of firms on ATSP5 multiple award contract

SHIELD IDIQ ceiling $151 billion Missile Defense Agency SHIELD contract ceiling announced Jan 13, 2026

Ingalls investment More than $1 billion Infrastructure, facilities and tools at Ingalls Shipbuilding

Ships in work More than 40 ships Active construction or modernization across Ingalls and NNS

Employees 44,000 workers HII workforce highlighted Jan 5, 2026

Director stock award 139 shares at $349.75 Form 4 insider equity award on 01/02/2026

Market Reality Check

Price: $415.71 Vol: Volume 684,412 is 7% abov...

normal vol

$415.71 Last Close

Volume Volume 684,412 is 7% above 20-day average of 642,220, showing modestly elevated interest. normal

Technical Trading just 0.43% below 52-week high and well above 200-day MA at $274.17, indicating a strong uptrend.

Peers on Argus

HII gained 1.68% while peers were mixed: DRS +0.2%, AVAV +2.77%, KTOS +3.99%, ER...

HII gained 1.68% while peers were mixed: DRS +0.2%, AVAV +2.77%, KTOS +3.99%, ERJ -0.54%, WWD -1.02%, suggesting a stock-specific reaction.

Historical Context

5 past events · Latest: Jan 13 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 13	Defense contract award	Positive	+3.4%	Missile Defense Agency SHIELD IDIQ with <b>$151 billion</b> ceiling for broad capabilities.
Jan 13	Technology demonstration	Positive	+3.4%	Sea Launcher demo of automated REMUS UUV launch and recovery for naval missions.
Jan 12	Facility expansion	Positive	+2.9%	Doubling Portchester U.K. unmanned facility to support REMUS and ROMULUS systems.
Jan 7	Leadership visit	Positive	-3.0%	Hosting top Navy leaders and highlighting more than <b>$1 billion</b> Ingalls investments.
Jan 5	Leadership visit	Positive	+1.1%	Secretary of War visit showcasing ~<b>40 ships</b> in construction and throughput efforts.

Pattern Detected

Recent contract, capability, and capacity news has usually led to positive, aligned price reactions, with one divergence on a leadership visit.

Recent Company History

Over early January 2026, HII reported multiple defense and capability milestones. On Jan. 13, a Missile Defense Agency SHIELD IDIQ with a $151 billion ceiling and a successful REMUS Sea Launcher demo both saw shares move about +3.37%. A European unmanned expansion on Jan. 12 coincided with a +2.91% move. Leadership visits and shipyard investment news on Jan. 7 and Jan. 5 produced mixed reactions. Today’s microelectronics ATSP5 award continues the theme of Mission Technologies growth and defense-aligned awards.

Market Pulse Summary

This announcement adds a large, multi-year microelectronics and engineering vehicle to HII’s Mission...

Analysis

This announcement adds a large, multi-year microelectronics and engineering vehicle to HII’s Mission Technologies portfolio, complementing the recent SHIELD IDIQ with a $151 billion ceiling and European unmanned expansion. Together with substantial shipyard investment of more than $1 billion and a workforce of 44,000, the ATSP5 award reinforces HII’s positioning across hardware, software, and modernization. Investors may track task-order wins, execution on advanced technologies, and additional defense program awards as key follow-ons.

Key Terms

microelectronics, indefinite delivery/indefinite quantity, reverse engineering

3 terms

microelectronics technical

"to rapidly obtain advanced microelectronics, engineering, prototyping and technology"

The design and manufacture of extremely small electronic parts and systems—think tiny computer chips, sensors and circuits that fit inside phones, cars and medical devices. Microelectronics matters to investors because these miniature components determine a product’s speed, battery life, cost and capabilities, so advances or shortages can boost or hurt a company’s sales, profit margins and competitive edge much like swapping ordinary bricks for precision-engineered building blocks.

indefinite delivery/indefinite quantity technical

"Advanced Technology Support Program V (ATSP5) multiple award indefinite delivery/indefinite quantity contract"

A contract type where a buyer agrees to purchase an unspecified number of goods or services over a set period, with the seller receiving individual orders as needs arise. Think of it like a standing grocery order: the store promises to buy whatever supplies it needs up to an agreed limit, but exact timing and quantities are decided later. For investors, such contracts can signal a steady potential revenue stream and backlog visibility, while leaving some uncertainty about timing and total value.

reverse engineering technical

"expertise in reverse engineering, microelectronics assurance and the redeployment of"

Reverse engineering is the process of taking apart or analyzing a product, system, or process to learn how it works so it can be reproduced, improved, or tested—like disassembling a watch to see how the gears and springs interact. For investors it matters because it can lead to copycat products, generic versions, or legal disputes over intellectual property, all of which can affect a company’s future sales, costs, and competitive position.

AI-generated analysis. Not financial advice.

MCLEAN, Va., Jan. 20, 2026 (GLOBE NEWSWIRE) -- HII (NYSE: HII) announced today that its Mission Technologies division is among 12 companies included on a 10-year, $25.4 billion Advanced Technology Support Program V (ATSP5) multiple award indefinite delivery/indefinite quantity contract to provide engineering solutions for electronics and software problems.

Awarded by the Defense Microelectronics Activity, ATSP5 is used across the U.S. Department of Defense and other civilian federal agencies to rapidly obtain advanced microelectronics, engineering, prototyping and technology modernization support. The contract provides rapid, flexible access to advanced microelectronics technologies, solves operational problems caused by obsolescence and accelerates deployment.

“Delivering a trusted, assured supply of microelectronics directly impacts warfighter survivability, mission success and technological superiority at a time when secure chips shape battlefield advantage,” said Grant Hagen, president of Mission Technologies’ Warfare Systems group. “HII looks forward to applying more than two decades of engineering expertise to design and deploy next-generation microelectronics while sustaining systems with robust anti-obsolescence solutions.”

ATSP5 includes the development of appropriate solutions to keep a system operational, elevate sophistication level or meet new threats. The scope covers both hardware and software and includes studies, analysis, design, software, simulation, fabrication, prototyping, integration, testing, producibility and extended limited production.

HII’s microelectronics and software engineers provide system and component-level expertise in reverse engineering, microelectronics assurance and the redeployment of previously obsolete systems that are crucial to national security. They do this using unique HII-developed tools and capabilities and a model-based technical approach.

About HII

HII is a global, all-domain defense provider. HII’s mission is to deliver the world’s most powerful ships and all-domain solutions in service of the nation, creating the advantage for our customers to protect peace and freedom around the world.

As the nation’s largest military shipbuilder, and with a more than 135-year history of advancing U.S. national security, HII delivers critical capabilities extending from ships to unmanned systems, cyber, ISR, AI/ML 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

Contact:

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

FAQ

What did HII announce about ATSP5 on January 20, 2026?

HII said Mission Technologies was selected among 12 companies for the 10-year, $25.4 billion ATSP5 multiple-award IDIQ to support microelectronics and software work.

How long is the ATSP5 contract vehicle that HII was selected onto?

ATSP5 is a 10-year multiple-award indefinite delivery/indefinite quantity contract.

What types of services can HII provide under the ATSP5 vehicle?

Services include design, prototyping, fabrication, reverse engineering, integration, testing and limited production for hardware and software.

Does selection to ATSP5 guarantee HII specific revenue or task orders?

No; ATSP5 is a multiple-award IDIQ, so task orders are competed and selection does not guarantee work or revenue.

Which agencies can use ATSP5-awarded companies like HII?

The contract can be used across the U.S. Department of Defense and other civilian federal agencies.