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HII Completes Dry Dock Work for Aircraft Carrier USS John C. Stennis (CVN 74) Refueling and Complex Overhaul

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HII's Newport News Shipbuilding division completes dry dock phase of USS John C. Stennis refueling and complex overhaul, showcasing significant upgrades and maintenance work.
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The completion of the dry dock phase for the USS John C. Stennis represents a significant milestone in the lifecycle of the vessel and underscores the importance of maintenance and modernization in the defense sector. The refueling and complex overhaul (RCOH) process is vital, as it extends the operational capabilities and service life of Nimitz-class aircraft carriers, which are central assets in naval power projection and national security.

From a business perspective, this phase of the RCOH likely involves substantial capital expenditure, which can have a considerable impact on the financials of HII and its supply chain. The overhaul includes extensive updates and technological enhancements, which may contribute to the broader defense industry by creating demand for new systems and components. This can have a ripple effect, potentially benefiting subcontractors and suppliers specializing in naval equipment and technology.

Investors should note that while the RCOH is a routine part of a carrier's lifecycle, the scale of such projects can affect HII's revenue stream and backlog. The successful transition from dry dock to outfitting berth indicates project adherence to schedule, which is critical in government contracting for maintaining trust and securing future contracts. The implications for HII's stock could be positive if this project signals the company's continued competence in managing complex defense contracts.

The RCOH of a Nimitz-class aircraft carrier, such as USS John C. Stennis, is not just a refurbishment but a strategic overhaul that ensures the vessel remains at the forefront of military technology and capability. The upgrades to the ship's power plant, structural integrity and combat systems are essential for the carrier to adapt to evolving threats and mission requirements.

For stakeholders, the implications are two-fold. Firstly, the carrier's enhanced capabilities can deter aggression and provide a versatile tool in geopolitical strategy. Secondly, the improvements in living spaces for the crew can boost morale and effectiveness, which is often an overlooked aspect of military readiness.

From a strategic standpoint, the RCOH contributes to the broader defense posture of the United States. Given the increasing tensions in various global hotspots, the timely return of the USS John C. Stennis to the fleet could serve as a significant factor in maintaining a balance of power. This, in turn, may indirectly influence defense spending and investment in sectors related to national security and defense.

The defense industry is a unique market segment where government contracts play a pivotal role. HII's update on the USS John C. Stennis's RCOH progress can be seen as an indicator of the company's current project execution and future market opportunities. Market analysts typically scrutinize such updates to assess a company's operational efficiency and its ability to capitalize on government defense spending, which is often seen as a stable and predictable revenue source.

Investors and market participants may interpret the successful completion of a project phase as a positive signal regarding HII's project management capabilities. This can influence investor sentiment and potentially impact the stock's performance. Additionally, the focus on upgrading and testing combat and propulsion systems highlights HII's involvement in high-tech defense markets, which could attract interest from investors seeking exposure to advanced defense technology sectors.

Long-term, the successful overhaul of the USS John C. Stennis could serve as a testament to HII's ability to handle complex defense projects, potentially leading to further government contracts and partnerships. This aspect is important for investors looking at the company's future growth prospects and competitive positioning in the defense industry.

NEWPORT NEWS, Va., April 08, 2024 (GLOBE NEWSWIRE) --  HII’s (NYSE: HII) Newport News Shipbuilding division has completed the dry dock portion of the refueling and complex overhaul (RCOH) of Nimitz-class aircraft carrier USS John C. Stennis (CVN 74).

Following the recent flooding of more than 100 million gallons of water into the dry dock, USS John C. Stennis was successfully moved to an outfitting berth at the shipyard, where the remainder of the RCOH work and testing will be completed.

“Witnessing Stennis leave the dry dock and return to the water is a testament to the hard work of our shipbuilders, the crew and our government partners,” said Rob Check, NNS vice president of in-service aircraft carrier programs. “We remain laser focused on the work ahead during this RCOH period and look forward to preparing this mighty aircraft carrier for the next half of its operational life.”

DCS24-72-198

Photos accompanying this release are available at: https://hii.com/news/hii-aircraft-carrier-uss-john-c-stennis-cvn-74-refueling-and-complex-overhaul-drydock/.  

During the dry dock phase of the RCOH, USS John C. Stennis received significant upgrades and began an extensive overhaul process, both inside and outside the ship. In addition to defueling and refueling its power plant, NNS shipbuilders preserved tanks and replaced thousands of valves, pumps and piping components. On the outside, they performed major structural updates to the island, mast and antenna tower; upgraded all aircraft launch and recovery equipment; painted the ship’s hull, including sea chests and freeboard; restored the propeller shafts; and installed refurbished propellers and rudders.

During the next phase of RCOH, shipbuilders will complete the overhaul and installation of the ship’s major components and test its electronics, combat and propulsion systems. This period will also focus on improving the ship’s living areas, including crew living spaces, galleys and mess decks.

“Our focus remains steadfast to get our ship back into the fight and to foster the professional and personal development of our sailors,” said Capt. J. Patrick Thompson III, the ship’s commanding officer. “We look forward to continue working with our industry partners to complete remaining production and test work and redeliver Stennis back to the fleet.”

USS John C. Stennis is the seventh Nimitz-class aircraft to undergo its RCOH — the mid-life refueling overhaul and maintenance availability that produces a recapitalized carrier capable of supporting current and future Navy requirements. Once the RCOH is complete, USS John C. Stennis will be equipped to operate in the fleet for the second half of her 50-year expected service life.

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:

Todd Corillo

Todd.T.Corillo@hii-co.com

(757) 688-3220

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/94abb0bc-939e-45b6-9faa-880087fff109


FAQ

What is the status of the refueling and complex overhaul (RCOH) of USS John C. Stennis (CVN 74) by HII's Newport News Shipbuilding division?

HII's Newport News Shipbuilding division has completed the dry dock portion of the RCOH of USS John C. Stennis, with the ship successfully moved to an outfitting berth for the remainder of the work and testing.

What upgrades were performed on USS John C. Stennis during the dry dock phase of the RCOH?

During the dry dock phase, significant upgrades were made to USS John C. Stennis, including defueling and refueling its power plant, structural updates to the island, mast, and antenna tower, and installation of refurbished propellers and rudders.

What improvements are planned for the next phase of the RCOH of USS John C. Stennis?

In the next phase of the RCOH, shipbuilders will focus on completing the overhaul and installation of major components, testing electronics, combat and propulsion systems, and improving living areas such as crew living spaces, galleys, and mess decks.

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