HII to Build Small Surface Combatants for US Navy

Rhea-AI Summary

HII (NYSE: HII) said its Ingalls Shipbuilding division was selected by the U.S. Navy on Dec. 19, 2025 to design and build the future small surface combatant (SSC), using the Ingalls-built Legend-class national security cutter (NSC) design as the baseline.

Ingalls will leverage existing facility capacity and the same build sequence used for NSCs, while continuing simultaneous construction on DDG 51 Flight III, LHA, and LPD Flight II. HII has invested $1+ billion in Ingalls infrastructure, delivered 10 Legend-class NSCs (final cutter Oct. 2023), and this year distributed work to 23 outsourcing partners while evaluating additional U.S. shipyard capacity.

Positive

• Navy selection to design and build SSC (Dec. 19, 2025)
• $1+ billion invested in Ingalls infrastructure and tooling
• Delivered 10 Legend-class NSCs; final cutter delivered Oct. 2023
• Simultaneous production on DDG 51 Flight III, LHA, LPD Flight II
• Work distributed to 23 outsourcing partners to expand capacity

Negative

• None.

Key Figures

Legend-class cutters delivered 10 ships Legend-class national security cutters delivered to U.S. Coast Guard

Final NSC delivery October 2023 Delivery date of final Legend-class national security cutter

Ingalls investment Over $1 billion Infrastructure, facility and toolset investments at Ingalls Shipbuilding

Outsourcing partners 23 partners Shipbuilding work distributed to outsourcing partners this year

Current share price $322.63 Price before SSC ship award announcement

52-week high $333.31 Upper end of 52-week trading range

52-week low $158.88 Lower end of 52-week trading range

Market capitalization $12,607,880,330 Equity value prior to SSC news

Market Reality Check

$336.64 Last Close

Volume Volume 387,287 is slightly below the 20-day average 393,606 (relative volume 0.98x). normal

Technical Price 322.63 is trading above the 200-day MA 258.02 and within 3.2% of the 52-week high.

Peers on Argus

Peers show a mixed tape: DRS (+1.25%), KTOS (+0.65%), WWD (+0.45%) versus declines in ERJ (-0.54%) and AVAV (-1.1%). With no peers in the momentum scanner and no same-day peer headlines, the SSC award appears more company-specific than sector-driven.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 16	Submarine milestone	Positive	-0.7%	Pressure hull completion for Virginia-class submarine Oklahoma (SSN 802).
Dec 11	AUKUS engagement	Positive	+1.1%	Australian delegation visit highlighting AUKUS workforce and supplier initiatives.
Dec 11	USV technology update	Positive	+1.1%	ROMULUS unmanned surface vessel reaching 30% completion and Q4 2026 trial timeline.
Dec 9	Submarine keel laying	Positive	-0.3%	Keel laying ceremony for Virginia-class attack submarine Barb (SSN 804).
Dec 9	Partnership expansion	Positive	-0.3%	Babcock contract to build submarine assemblies for Virginia-class Block VI.

Pattern Detected

Recent operational and partnership news has often seen mixed price reactions, with several positive shipbuilding milestones followed by modest divergences.

Recent Company History

This announcement adds a new small surface combatant program to HII’s existing portfolio of Virginia-class submarines, unmanned surface vessels, and AUKUS-related collaborations. In December 2025, HII highlighted milestones such as pressure hull completion for Oklahoma (SSN 802), the ROMULUS USV reaching 30% completion, and keel laying for Barb (SSN 804), alongside a partnership expansion with Babcock for Block VI assemblies. Together, these updates underscore an expanding backlog and industrial base that today’s Navy selection directly complements.

Market Pulse Summary

This announcement highlights HII’s selection to design and build future small surface combatant ships, leveraging its Legend-class national security cutter design and more than $1 billion of recent Ingalls Shipbuilding investments. It adds to a string of December milestones across submarines and unmanned systems. Investors may track how this program integrates with existing DDG, LHA, and LPD lines, the role of 23 outsourcing partners, and any updates on potential capacity expansion, including an additional U.S. shipyard.

AI-generated analysis. Not financial advice.

PASCAGOULA, Miss., Dec. 19, 2025 (GLOBE NEWSWIRE) -- HII’s (NYSE: HII) Ingalls Shipbuilding division has been selected by the U.S. Navy to design and build the future small surface combatant (SSC) ship, leveraging the proven design of the Ingalls-built Legend-class national security cutter (NSC). With a proven track record of building complex ships, and having the available facility capacity, Ingalls shipbuilders will once again engage in construction activities alongside its destroyer and amphibious ship shipbuilding lines where the national security cutters were built, using the same sequence of build.

"We look forward to supporting the Navy on this critical program,” said Chris Kastner, HII president and CEO. “Speed matters, and the NSC ship design is stable and produceable and will lead to predictable schedules. I have great confidence in the Ingalls team to execute this program, and in our ongoing efforts with our partners to successfully expand the U.S. shipbuilding industrial base to meet the Navy’s needs.”

Currently, Ingalls is simultaneously building three classes of ships (DDG 51 Flight III, LHA, and LPD Flight II) and modernizing the Zumwalt-class of guided missile destroyers with technology upgrades including the incorporation of the conventional prompt strike weapons system. Ingalls supported the U.S. Coast Guard for nearly two decades by building and delivering 10 Legend-class national security cutters (NSCs). The final cutter was delivered in October 2023.

HII has invested over $1 billion in the infrastructure, facility and toolsets at Ingalls Shipbuilding, positioning the shipyard to support next-generation systems and platforms. HII this year has distributed shipbuilding work to 23 outsourcing partners, and established partnerships with international manufacturers, to explore meaningful ways to expand capacity including evaluation of adding an additional shipyard in the U.S.

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:

Danny Hernandez
Danny.J.Hernandez@HII-co.com
(240) 264-7143

Kimberly Aguillard
Kimberly.K.Aguillard@HII-co.com
(228) 355-5663

FAQ

What did HII announce about the small surface combatant (SSC) on Dec. 19, 2025?

HII said Ingalls was selected by the U.S. Navy to design and build the future SSC using the Legend-class NSC design as the baseline.

How much has HII invested in Ingalls Shipbuilding to support SSC work (HII)?

HII reported investing over $1 billion in Ingalls infrastructure, facilities, and toolsets.

What shipbuilding work is Ingalls running while building the SSC (HII)?

Ingalls is simultaneously building DDG 51 Flight III, LHA, and LPD Flight II while supporting SSC construction.

How many Legend-class national security cutters did Ingalls deliver and when was the last delivery (HII)?

Ingalls built and delivered 10 Legend-class NSCs, with the final cutter delivered in October 2023.

Will HII use external partners to support SSC production (HII)?

Yes; HII said it distributed shipbuilding work to 23 outsourcing partners this year and is exploring additional U.S. shipyard capacity.