Huntington Ingalls Industries-General Dynamics Team Awarded Contract Modification For Construction of 10th Virginia-Class Block V Submarine Awarded by U.S. Navy

Rhea-AI Summary

Huntington Ingalls Industries (NYSE: HII) announced a contract modification for the construction of the 10th Virginia-class Block V submarine, adding $9.8 billion to its total contract value. This contract is part of a larger $22 billion deal awarded in December 2019 for nine submarines. Construction is expected to start in early 2024. The contract modification supports the continued production at two submarines per year, aiming to stabilize the industrial base. HII remains the largest military shipbuilder in the U.S., employing over 42,000 people.

Positive

• Secured a $9.8 billion contract modification to construct the 10th Virginia-class submarine.
• Continues production at two submarines per year, stabilizing the industrial base.

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• None.

NEWPORT NEWS, Va., March 29, 2021 (GLOBE NEWSWIRE) -- Huntington Ingalls Industries (NYSE: HII) announced today that the shipbuilding team, which includes its Newport News Shipbuilding division, has been awarded a contract modification in support of construction of the 10th Virginia-class Block V submarine.

In December 2019, Newport News and teaming partner General Dynamics Electric Boat received a $22 billion contract to build nine Virginia-class submarines. The contract modification, which exercises an option for the last fast-attack submarine of the block, brings the total value of the contract for Newport News to $9.8 billion.

“We are pleased that Congress supported the restoration of funding for the 10th Virginia-class boat in Block V,” said Jason Ward, Newport News’ vice president of Virginia-class submarine construction. “We look forward to building and delivering the final boat of the block that maintains production at two submarines per year and continues to stabilize the industrial base.”

In total, Newport News and Electric Boat have built and delivered 19 Virginia-class submarines. Construction on the 10th submarine of the Block V is expected to begin in early 2024.

Huntington Ingalls Industries is America’s largest military shipbuilding company and a provider of professional services to partners in government and industry. For more than a century, HII’s Newport News and Ingalls shipbuilding divisions in Virginia and Mississippi have built more ships in more ship classes than any other U.S. naval shipbuilder. HII’s Technical Solutions division supports national security missions around the globe with unmanned systems, defense and federal solutions, and nuclear and environmental services. Headquartered in Newport News, Virginia, HII employs more than 42,000 people operating both domestically and internationally. For more information, visit:

• HII on the web: www.huntingtoningalls.com
• HII on Facebook: www.facebook.com/HuntingtonIngallsIndustries
• HII on Twitter: www.twitter.com/hiindustries  
• HII on YouTube: www.youtube.com/huntingtoningalls
• HII on Instagram: www.instagram.com/huntingtoningalls

Statements in this release, other than statements of historical fact, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those expressed in these statements. Factors that may cause such differences include: changes in government and customer priorities and requirements (including government budgetary constraints, shifts in defense spending, and changes in customer short-range and long-range plans); our ability to estimate our future contract costs and perform our contracts effectively; changes in procurement processes and government regulations and our ability to comply with such requirements; our ability to deliver our products and services at an affordable life cycle cost and compete within our markets; natural and environmental disasters and political instability; our ability to execute our strategic plan, including with respect to share repurchases, dividends, capital expenditures and strategic acquisitions; adverse economic conditions in the United States and globally; health epidemics, pandemics and similar outbreaks, including the COVID-19 pandemic; changes in key estimates and assumptions regarding our pension and retiree health care costs; security threats, including cyber security threats, and related disruptions; and other risk factors discussed in our filings with the U.S. Securities and Exchange Commission. There may be other risks and uncertainties that we are unable to predict at this time or that we currently do not expect to have a material adverse effect on our business, and we undertake no obligation to update any forward-looking statements. You should not place undue reliance on any forward-looking statements that we may make. This release also contains non-GAAP financial measures and includes a GAAP reconciliation of these financial measures. Non-GAAP financial measures should not be construed as being more important than comparable GAAP measures.

Contact:

Duane Bourne
Duane.A.Bourne@HII-co.com
(757) 380-3581

FAQ

What is the significance of the recent contract modification for HII?

The contract modification adds $9.8 billion to Huntington Ingalls Industries' total contract value for submarine construction, supporting continued production.

How many Virginia-class submarines has HII delivered?

HII, along with General Dynamics Electric Boat, has built and delivered 19 Virginia-class submarines.

When will construction begin for the 10th Virginia-class Block V submarine?

Construction on the 10th Virginia-class Block V submarine is expected to begin in early 2024.

What was the original contract awarded to HII for Virginia-class submarines?

In December 2019, HII received a $22 billion contract to build nine Virginia-class submarines.