HII is Awarded $6.7 Billion Contract to Support the U.S. Air Force’s Electronic Warfare Mission

Rhea-AI Summary

HII (NYSE: HII) has secured a significant $6.7 billion contract to provide electronic warfare engineering and technical services support for the U.S. Air Force. This indefinite delivery/indefinite quantity contract marks the largest ever awarded to HII's Mission Technologies division. The contract, which was initially announced during HII's third quarter earnings call on October 31, 2024, will focus on electromagnetic spectrum and electronic warfare support services.

Positive

• Secured major $6.7 billion contract with U.S. Air Force
• Largest contract ever awarded to Mission Technologies division
• Expands presence in strategic electronic warfare sector

Negative

• None.

Insights

Financial Analyst

This $6.7 billion IDIQ contract represents a significant milestone for HII's Mission Technologies division. The award strengthens HII's position in the defense technology sector and provides substantial revenue visibility. Electronic warfare is becoming increasingly critical in modern military operations and this contract positions HII at the forefront of this growing market segment. The contract's size relative to HII's $7.5 billion market cap underscores its materiality, potentially driving future growth and margin expansion. While IDIQ contracts don't guarantee the full value will be realized, they typically result in steady, long-term revenue streams. This award should enhance HII's competitive positioning in the defense technology space and could lead to follow-on opportunities.

Tech Expert

Electronic warfare (EW) capabilities are becoming increasingly vital in modern military operations, particularly as electromagnetic spectrum warfare evolves. This contract signals the Air Force's commitment to maintaining technological superiority in EW systems, which are important for protecting aircraft and disrupting enemy defenses. The scope likely includes developing and maintaining advanced jamming systems, radar warning receivers and other electromagnetic spectrum management tools. HII's expertise in this domain will be essential as threats become more sophisticated and the battlespace grows more complex. The size of this award suggests a comprehensive approach to EW capabilities, potentially including both offensive and defensive systems development.

MCLEAN, Va., Dec. 05, 2024 (GLOBE NEWSWIRE) -- HII (NYSE: HII) was awarded a $6.7 billion contract to provide electronic warfare engineering and technical services support for the U.S. Air Force. The indefinite delivery/indefinite quantity contract is the largest ever awarded to HII’s Mission Technologies division.

“We have a team of subject matter experts with deep expertise in all aspects of electromagnetic spectrum and electronic warfare, and we are committed to staying a step ahead of our adversaries alongside our customers as the complexity of warfare changes,” said Andy Green, executive vice president of HII and president of HII’s Mission Technologies division.

This award was initially announced during HII’s third quarter earnings call on Oct. 31, 2024.

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:

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

FAQ

What is the value of HII's new U.S. Air Force contract?

HII (NYSE: HII) was awarded a $6.7 billion contract to provide electronic warfare engineering and technical services support for the U.S. Air Force.

When did HII announce the $6.7 billion Air Force contract?

The contract was initially announced during HII's third quarter earnings call on October 31, 2024.

What type of services will HII provide under the new Air Force contract?

HII will provide electronic warfare engineering and technical services support, focusing on electromagnetic spectrum and electronic warfare capabilities.

Is this the largest contract for HII's Mission Technologies division?

Yes, this $6.7 billion indefinite delivery/indefinite quantity contract is the largest ever awarded to HII's Mission Technologies division.