Huntington Ingalls Industries Reports Strong Progress as Newport News Shipbuilding Prepares for 2026
Huntington Ingalls Industries (HII), the largest military shipbuilder in the United States, has announced significant advancements as it enters 2026 with robust momentum. During the fourth-quarter earnings call on Thursday, Chris Kastner, HII’s president and CEO, highlighted the company’s operational achievements, including the hiring of over 6,600 shipbuilders and an investment of more than $400 million in capital improvements throughout 2025. The company plans to continue this trend with hundreds of millions earmarked for capital investments in the Newport News shipyard in the upcoming year.
Key projects at Newport News include the completion of a multipurpose carrier refueling and overhaul work center, updates to the pier to support carrier inactivation, and substantial investments in manufacturing centers to enhance submarine production. Additionally, a new parking garage, which began construction in 2025, is set to improve facilities at the shipyard. Kastner emphasized the urgency of the current global security environment, stating, “The U.S. Navy and all of our defense customers need our ships and technologies now more than ever.”
Financial Growth and Future Expectations
In the fourth quarter of 2025, Newport News Shipbuilding reported revenues of $1.9 billion, reflecting a 19% increase of $303 million compared to 2024. The total revenue for the year reached $6.5 billion, a rise of $538 million or 9% from the previous year. The shipyard’s operating income also saw a significant boost, climbing to $84 million in the fourth quarter, up from $38 million the prior year. For the entire year, operating income was reported at $331 million, an increase from $246 million in 2024.
These financial gains were primarily driven by increased production volumes in submarines and aircraft carriers, along with contract adjustments related to the Virginia-class submarine program. However, these were partially offset by adjustments and incentives from the aircraft carrier refueling and complex overhaul program in 2024. Looking ahead, HII anticipates substantial contract awards in 2026 and 2027, aiming to resolve the majority of pre-COVID contract challenges.
Kastner noted the importance of maintaining hiring momentum, stating that the company expects to hire at least as many shipbuilders in 2026 as it did in 2025. This includes the integration of approximately 500 workers from the W International acquisition in South Carolina and a plan to increase outsourcing after doubling it in the previous year.
Key milestones achieved in 2025 included the launch of South Carolina operations, the installation of the first 3D-printed valve manifold assembly on a new aircraft carrier, and the awarding of contracts for two additional Virginia-class submarines. The shipyard also celebrated the keel laying of the Virginia-class attack submarine Barb, the launch of the Virginia-class submarine Arkansas, and the delivery of the Virginia-class submarine Massachusetts to the U.S. Navy.
As HII continues to navigate the evolving landscape of military shipbuilding, the company remains committed to meeting the urgent demands of national defense.
