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

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.

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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.

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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
Argus Jan 20 session
-2.42% close to close Open Argus
Details

News Market Reaction – HII

On Jan 20, the day this news came out, HII closed 2.42% below the previous close.

Data tracked by StockTitan Argus for the Jan 20 session.

Market Context

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 Figures

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

Historical Context

5 past events · Latest: Jan 13
5 events
  1. Jan 13

    Defense contract award

    24h Move
    +3.4%

    Missile Defense Agency SHIELD IDIQ with $151 billion ceiling for broad capabilities.

  2. Jan 13

    Technology demonstration

    24h Move
    +3.4%

    Sea Launcher demo of automated REMUS UUV launch and recovery for naval missions.

  3. Jan 12

    Facility expansion

    24h Move
    +2.9%

    Doubling Portchester U.K. unmanned facility to support REMUS and ROMULUS systems.

  4. Jan 7

    Leadership visit

    24h Move
    -3.0%

    Hosting top Navy leaders and highlighting more than $1 billion Ingalls investments.

  5. Jan 5

    Leadership visit

    24h Move
    +1.1%

    Secretary of War visit showcasing ~40 ships in construction and throughput efforts.

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

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. How Rhea-AI works. Not financial advice.

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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:

Contact:

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


FAQ

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

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.

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