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Huntington (HII) Unveils New Amphibious Assault Ship LHA 8
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Huntington Ingalls Industries, Inc.’s (HII - Free Report) business segment, Ingalls Shipbuilding, recently unveiled its third America class amphibious assault ship, Bougainville (LHA 8), for the U.S. Navy and Marine Corps partners.
This signifies HII’s continuous efforts to provide state-of-the-art products to the Navy that boast upgraded and technologically advanced features, suiting the evolving and ever-changing warfare needs of the military.
In this context, it is imperative to mention that, to date, Ingalls has delivered 15 large-deck amphibious ships to the U.S. Navy and is currently in the process of building Bougainville, Fallujah.
Significance of Bougainville (LHA 8)
Bougainville is the first ship in the America class to be built with a well deck. The ship will retain aviation capabilities while adding the surface assault capability of a well deck and a larger flight deck configured for F-35B Joint Strike Fighter and MV-22 Osprey aircraft. These large-deck amphibious assault ships also include top-of-the-line medical facilities with full operating suites and triage capabilities.
The America class is a multi-functional and versatile warship that is capable of operating in a high-density, multi-threat environment as an integral member of an expeditionary strike group, an amphibious task force or an amphibious ready group.
The expertise in making such a versatile ship with unparalleled sea-basing capabilities should result in considerable order inflow for Huntington Ingalls from the U.S. Navy, thus boosting its long-term revenue generation prospects.
Growth Prospects
The changing dynamics of the military landscape and the rising geopolitical tension have led the world to continuously strengthen its defense structure. To this end, Navy ships form an integral part of any military missions and arm them in ship warfare affairs.As nations increase their spending for strengthening sea warfare capabilities, the military shipbuilding market is projected to witness strong demand.
Per a report from Mordor Intelligence, the naval vessel market is projected to grow, witnessing a CAGR of 13.3% over the 2023-2028 period. This should significantly benefit HII, as it constructs amphibious assault ships and expeditionary warfare ships for the U.S. Navy and boasts a strong portfolio of products.
Other prominent defense majors that are also likely to enjoy the benefits of the expanding submarine market are General Dynamics(GD - Free Report) , Lockheed Martin(LMT - Free Report) and BAE Systems plc (BAESY - Free Report) .
General Dynamics’ unit Bath Iron Works is the leading designer and builder of the Arleigh Burke (DDG 51) class of AEGIS destroyers. In August 2023, the company was awarded a contract from the U.S. Navy to construct three Flight III Arleigh Burke-class destroyers. There are currently six DDG 51 destroyers in production at Bath Iron Works.
General Dynamics boasts a long-term growth rate of 9.2%. GD shares have increased by 2.4% in the past three months.
Lockheed Martin manufactures Littoral Combat Ships (LCS). Its freedom-variant LCS USS Nantucket (LCS 27) is a resilient, flexible warshipdesigned to encounter the evolving missions of the U.S. Navy. LCS 27 is particularly designed to conduct close-to-shore missions.
Lockheed’s long-term earnings growth rate is pegged at 8.4%. The Zacks Consensus Estimate for LMT’s 2023 sales calls for growth rate of 1% from the prior-year reported figure.
BAE Systems designs, builds, commissions, repairs and supports a full range of complex naval ships, from offshore patrol vessels to aircraft carriers, giving customers the capability to carry out extensive naval operations. Its Queen Elizabeth Class Aircraft Carriers are the largest warships ever constructed in the United Kingdom.
BAE Systems boasts a long-term earnings growth rate of 14%. The Zacks Consensus Estimate for BAESY’s 2023 sales suggests growth rate of 33.6% from the prior-year reported figure.
Price Movement
In the past six months, shares of Huntington Ingalls have decreased by 3.4% compared with the industry’s fall of 17.7%.
Image: Bigstock
Huntington (HII) Unveils New Amphibious Assault Ship LHA 8
Huntington Ingalls Industries, Inc.’s (HII - Free Report) business segment, Ingalls Shipbuilding, recently unveiled its third America class amphibious assault ship, Bougainville (LHA 8), for the U.S. Navy and Marine Corps partners.
This signifies HII’s continuous efforts to provide state-of-the-art products to the Navy that boast upgraded and technologically advanced features, suiting the evolving and ever-changing warfare needs of the military.
In this context, it is imperative to mention that, to date, Ingalls has delivered 15 large-deck amphibious ships to the U.S. Navy and is currently in the process of building Bougainville, Fallujah.
Significance of Bougainville (LHA 8)
Bougainville is the first ship in the America class to be built with a well deck. The ship will retain aviation capabilities while adding the surface assault capability of a well deck and a larger flight deck configured for F-35B Joint Strike Fighter and MV-22 Osprey aircraft. These large-deck amphibious assault ships also include top-of-the-line medical facilities with full operating suites and triage capabilities.
The America class is a multi-functional and versatile warship that is capable of operating in a high-density, multi-threat environment as an integral member of an expeditionary strike group, an amphibious task force or an amphibious ready group.
The expertise in making such a versatile ship with unparalleled sea-basing capabilities should result in considerable order inflow for Huntington Ingalls from the U.S. Navy, thus boosting its long-term revenue generation prospects.
Growth Prospects
The changing dynamics of the military landscape and the rising geopolitical tension have led the world to continuously strengthen its defense structure. To this end, Navy ships form an integral part of any military missions and arm them in ship warfare affairs.As nations increase their spending for strengthening sea warfare capabilities, the military shipbuilding market is projected to witness strong demand.
Per a report from Mordor Intelligence, the naval vessel market is projected to grow, witnessing a CAGR of 13.3% over the 2023-2028 period. This should significantly benefit HII, as it constructs amphibious assault ships and expeditionary warfare ships for the U.S. Navy and boasts a strong portfolio of products.
Other prominent defense majors that are also likely to enjoy the benefits of the expanding submarine market are General Dynamics(GD - Free Report) , Lockheed Martin(LMT - Free Report) and BAE Systems plc (BAESY - Free Report) .
General Dynamics’ unit Bath Iron Works is the leading designer and builder of the Arleigh Burke (DDG 51) class of AEGIS destroyers. In August 2023, the company was awarded a contract from the U.S. Navy to construct three Flight III Arleigh Burke-class destroyers. There are currently six DDG 51 destroyers in production at Bath Iron Works.
General Dynamics boasts a long-term growth rate of 9.2%. GD shares have increased by 2.4% in the past three months.
Lockheed Martin manufactures Littoral Combat Ships (LCS). Its freedom-variant LCS USS Nantucket (LCS 27) is a resilient, flexible warshipdesigned to encounter the evolving missions of the U.S. Navy. LCS 27 is particularly designed to conduct close-to-shore missions.
Lockheed’s long-term earnings growth rate is pegged at 8.4%. The Zacks Consensus Estimate for LMT’s 2023 sales calls for growth rate of 1% from the prior-year reported figure.
BAE Systems designs, builds, commissions, repairs and supports a full range of complex naval ships, from offshore patrol vessels to aircraft carriers, giving customers the capability to carry out extensive naval operations. Its Queen Elizabeth Class Aircraft Carriers are the largest warships ever constructed in the United Kingdom.
BAE Systems boasts a long-term earnings growth rate of 14%. The Zacks Consensus Estimate for BAESY’s 2023 sales suggests growth rate of 33.6% from the prior-year reported figure.
Price Movement
In the past six months, shares of Huntington Ingalls have decreased by 3.4% compared with the industry’s fall of 17.7%.
Image Source: Zacks Investment Research
Zacks Rank
Huntington Ingalls currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.