Photo Release — Huntington Ingalls Industries Awarded $2.9 Billion Contract To Execute USS John C. Stennis (CVN 74) Refueling and Complex Overhaul

Rhea-AI Summary

Huntington Ingalls Industries (NYSE:HII) has been awarded a significant $2.9 billion contract for the refueling and complex overhaul (RCOH) of the nuclear-powered aircraft carrier USS John C. Stennis (CVN 74). This project constitutes 35% of the ship's total maintenance during its 50-year service life. The RCOH will involve extensive modernization across over 2,300 compartments, including refueling of reactors and upgrades to various systems. More than 4,000 employees will be involved in the project, slated to be completed by late 2025.

Positive

• Awarded a $2.9 billion contract for USS John C. Stennis RCOH, enhancing revenue.
• The RCOH project represents 35% of maintenance in the carrier's lifecycle, indicating substantial work ahead.
• Involvement of over 4,000 employees, supporting job stability and local economy.

Negative

• None.

NEWPORT NEWS, Va., Feb. 19, 2021 (GLOBE NEWSWIRE) -- Huntington Ingalls Industries (NYSE:HII) announced today that its Newport News Shipbuilding division has been awarded a $2.9 billion contract for the refueling and complex overhaul (RCOH) of the nuclear-powered aircraft carrier USS John C. Stennis (CVN 74).

“We are pleased to be awarded the contract to execute this extensive construction and engineering project,” said Todd West, Newport News’ vice president, in-service aircraft carrier programs. “Our teams have spent three years preparing and planning for each step of the process along the way, and we look forward to continuing our work with our suppliers and Navy partners in anticipation of the ship’s arrival at Newport News.”

The RCOH represents 35% of all maintenance and modernization in an aircraft carrier's 50-year service life. Stennis’ RCOH will include the refueling of the ship’s reactors, as well as extensive modernization work to more than 2,300 compartments, hundreds of tanks and systems. In addition, major upgrades will be made in the propulsion plant, to the flight deck, catapults, combat systems and the island.

A photo accompanying this release is available at: https://newsroom.huntingtoningalls.com/file/stennis-rcoh.

Built at Newport News, Stennis was christened in 1993 and delivered to the Navy in 1995. The ship is the seventh Nimitz-class carrier to undergo this major life-cycle milestone. More than 4,000 Newport News employees will support the execution effort, which will continue through late 2025.

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 value of the contract awarded to HII for the USS John C. Stennis?

HII was awarded a $2.9 billion contract for the RCOH of the USS John C. Stennis.

What does the RCOH project for the USS John C. Stennis include?

The RCOH will include refueling of reactors and extensive modernization across over 2,300 compartments.

How many employees will support the USS John C. Stennis RCOH?

More than 4,000 Newport News employees will be involved in the execution of the RCOH.

When is the expected completion date for the USS John C. Stennis RCOH?

The RCOH is slated to continue until late 2025.