HII to Build Small Surface Combatants for US Navy

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.

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.

Argus Dec 19 session

+4.34% close to close Open Argus

Details

News Market Reaction – HII

On Dec 19, the day this news came out, HII closed 4.34% above the previous close.

Data tracked by StockTitan Argus for the Dec 19 session.

Key Figures

Legend-class cutters delivered: 10 ships Final NSC delivery: October 2023 Ingalls investment: Over $1 billion +5 more

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

Historical Context

5 past events · Latest: Dec 16

5 events

1. Dec 16

   Submarine milestone

   24h Move

   -0.7%

   Pressure hull completion for Virginia-class submarine Oklahoma (SSN 802).

2. Dec 11

   AUKUS engagement

   24h Move

   +1.1%

   Australian delegation visit highlighting AUKUS workforce and supplier initiatives.

3. Dec 11

   USV technology update

   24h Move

   +1.1%

   ROMULUS unmanned surface vessel reaching 30% completion and Q4 2026 trial timeline.

4. Dec 9

   Submarine keel laying

   24h Move

   -0.3%

   Keel laying ceremony for Virginia-class attack submarine Barb (SSN 804).

5. Dec 9

   Partnership expansion

   24h Move

   -0.3%

   Babcock contract to build submarine assemblies for Virginia-class Block VI.

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

Key Terms

small surface combatant, national security cutter, DDG 51 Flight III, Zumwalt-class, +1 more

5 terms

small surface combatant technical

"selected by the U.S. Navy to design and build the future small surface combatant (SSC) ship"

A small surface combatant is a relatively compact warship designed for coastal and regional missions such as patrol, escort, and anti-submarine or anti-surface warfare; think of it as the navy’s tactical pickup truck compared with larger capital ships. Investors care because these ships drive steady demand for shipbuilders, suppliers, weapons and maintenance services, and changes in defense budgets or procurement plans can directly affect revenues and order backlogs in the defense sector.

national security cutter technical

"leveraging the proven design of the Ingalls-built Legend-class national security cutter (NSC)"

A national security cutter is a large, government-owned patrol ship designed to protect a country’s waters, carry out long-range missions, and support law enforcement and defense tasks at sea. Investors care because building, equipping, and maintaining these cutters involves sizable, multi-year defense contracts and supply-chain spending; think of them like long-term infrastructure projects that provide steady revenue for shipbuilders, parts suppliers, and contractors.

DDG 51 Flight III technical

"Ingalls is simultaneously building three classes of ships (DDG 51 Flight III, LHA, and LPD Flight II)"

DDG 51 Flight III is the newest configuration of the Arleigh Burke–class guided‑missile destroyer, featuring upgraded sensors, power and combat systems compared with earlier versions. It matters to investors because these ships create multi‑year government contracts and steady demand for defense contractors, suppliers and subcontractors—similar to how a new car model drives long-term manufacturing, parts and revenue streams for an automaker and its vendors.

Zumwalt-class technical

"modernizing the Zumwalt-class of guided missile destroyers with technology upgrades"

A class of advanced U.S. Navy guided‑missile warships built with stealthy shapes, powerful onboard electrical systems, and long‑range weapons and sensors. Investors care because building, upgrading and maintaining these ships creates large, long‑running government contracts and technology work for defense suppliers; delays, cost overruns or new orders can meaningfully affect revenues and stock prices of contractors, similar to how a multi‑year infrastructure project drives business for construction firms.

conventional prompt strike weapons system technical

"including the incorporation of the conventional prompt strike weapons system"

A conventional prompt strike weapons system is a non-nuclear military capability designed to hit high-value targets quickly anywhere in the world, often using long-range, fast missiles or hypersonic vehicles. For investors, it matters because development and procurement influence government defense spending, contractor revenues, supply chains and geopolitical risk—similar to investing in companies that build emergency response systems that must be fast, reliable and continually upgraded.

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

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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

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

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.