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Huntington Ingalls Industries Inc.’s (HII - Free Report) business segment, Mission Technologies, recently unveiled a new unmanned underwater vehicle (UUV), the REMUS 130, at the Oceanology International 2024 conference and exhibition. This launch should strengthen HII’s demand in underwater operations.
Significance of REMUS UUVs
Huntington Ingalls’ REMUS family of UUVs is used to collect data for a variety of operations. They are well-known for their long service life, durability and easy upgradeability.
REMUS 130, the third generation of REMUS 100 vehicles, is a compact, highly capable vehicle with lower cost and risk. With an operational depth of 100 meters and an extended battery life of up to 10 hours, it has been designed to improve underwater operations. The vehicle can serve a variety of operations like offshore oil and gas exploration, data collection and research, and many more.
REMUS 130 combines the same proven technology platform as REMUS 300 and the proven modularity and open architecture of the REMUS 300 and 620 models but at a reduced cost.
Growth Prospects
The increased demand for exploration activities among oil and gas manufacturers along with the growing concerns regarding maritime security and cross-border maritime threats have led to the growth of the UUV industry. Rapid technological developments, like the adoption of Artificial Intelligence and machine learning technologies by companies in their unmanned vehicles, are expected to further stimulate this industry.
Per a report from Expert Market Research, the global UUV market is expected to witness a CAGR of 14.50% during 2024-2032 to reach $17.32 billion by 2032. This market growth opportunity should boost Huntington Ingalls’ operating results as it is the largest producer of UUVs worldwide.
Impressively, Huntington Ingalls has delivered more than 600 UUVs to 30 countries, including 14 NATO members, so far. On Oct 11, 2023, HII was awarded a contract by the U.S. Navy for building nine small UUVs. Its REMUS 620, another variant of REMUS UUV, unveiled in 2022, successfully completed its first in-water test in November 2023.
Peer Moves
A few other defense players that can gain from the expanding UUV market are General Dynamics (GD - Free Report) , BAE Systems PLC (BAESY - Free Report) and Lockheed Martin (LMT - Free Report) .
General Dynamics’ Mission Systems unit has a wide portfolio of autonomous UUVs, with its major programs including the Knifefish, Bluefin Robotics and Hammerhead. Currently the company is engaged in the production of next-generation UUVs, for the U.S. and Australian Navy, which will be deployed on mine-hunting missions all over the world to protect sailors and their ships.
GD boasts a long-term (three to five years) earnings growth rate of 10.8%. The Zacks Consensus Estimate for 2024 sales indicates growth of 9.1% from 2023.
BAE Systems’ Riptide UUVs have created unmatched vehicles by combining autonomous undersea platforms with world-class sensor and electronic payloads. These UUVs provide multiple capabilities like autonomy, navigation, signals intelligence systems, acoustic, sensor processing and many more.
BAESY boasts a long-term earnings growth rate of 12.9%. The Zacks Consensus Estimate for 2024 sales indicates growth of 34.1% from 2023.
Lockheed Martin’s Marlin is a 10-foot-long autonomous underwater vehicle (AUV) system. It uses advanced sensors and high-definition video to create 3D models of its undersea environment. With an operational depth of up to 1,000 feet below the surface, it caters to multiple civil and military operations. LMT has also been building small A-size AUVs for more than 35 years now.
LMT boasts a long-term earnings growth rate of 4.2%. The Zacks Consensus Estimate for 2024 sales indicates growth of 2.4% from 2023.
Price Performance
In the past year, shares of Huntington Ingalls have gained 39.3% against the industry’s 2.4% decline.
Image: Bigstock
Huntington Ingalls' (HII) Division Launches REMUS 130 UUV
Huntington Ingalls Industries Inc.’s (HII - Free Report) business segment, Mission Technologies, recently unveiled a new unmanned underwater vehicle (UUV), the REMUS 130, at the Oceanology International 2024 conference and exhibition. This launch should strengthen HII’s demand in underwater operations.
Significance of REMUS UUVs
Huntington Ingalls’ REMUS family of UUVs is used to collect data for a variety of operations. They are well-known for their long service life, durability and easy upgradeability.
REMUS 130, the third generation of REMUS 100 vehicles, is a compact, highly capable vehicle with lower cost and risk. With an operational depth of 100 meters and an extended battery life of up to 10 hours, it has been designed to improve underwater operations. The vehicle can serve a variety of operations like offshore oil and gas exploration, data collection and research, and many more.
REMUS 130 combines the same proven technology platform as REMUS 300 and the proven modularity and open architecture of the REMUS 300 and 620 models but at a reduced cost.
Growth Prospects
The increased demand for exploration activities among oil and gas manufacturers along with the growing concerns regarding maritime security and cross-border maritime threats have led to the growth of the UUV industry. Rapid technological developments, like the adoption of Artificial Intelligence and machine learning technologies by companies in their unmanned vehicles, are expected to further stimulate this industry.
Per a report from Expert Market Research, the global UUV market is expected to witness a CAGR of 14.50% during 2024-2032 to reach $17.32 billion by 2032. This market growth opportunity should boost Huntington Ingalls’ operating results as it is the largest producer of UUVs worldwide.
Impressively, Huntington Ingalls has delivered more than 600 UUVs to 30 countries, including 14 NATO members, so far. On Oct 11, 2023, HII was awarded a contract by the U.S. Navy for building nine small UUVs. Its REMUS 620, another variant of REMUS UUV, unveiled in 2022, successfully completed its first in-water test in November 2023.
Peer Moves
A few other defense players that can gain from the expanding UUV market are General Dynamics (GD - Free Report) , BAE Systems PLC (BAESY - Free Report) and Lockheed Martin (LMT - Free Report) .
General Dynamics’ Mission Systems unit has a wide portfolio of autonomous UUVs, with its major programs including the Knifefish, Bluefin Robotics and Hammerhead. Currently the company is engaged in the production of next-generation UUVs, for the U.S. and Australian Navy, which will be deployed on mine-hunting missions all over the world to protect sailors and their ships.
GD boasts a long-term (three to five years) earnings growth rate of 10.8%. The Zacks Consensus Estimate for 2024 sales indicates growth of 9.1% from 2023.
BAE Systems’ Riptide UUVs have created unmatched vehicles by combining autonomous undersea platforms with world-class sensor and electronic payloads. These UUVs provide multiple capabilities like autonomy, navigation, signals intelligence systems, acoustic, sensor processing and many more.
BAESY boasts a long-term earnings growth rate of 12.9%. The Zacks Consensus Estimate for 2024 sales indicates growth of 34.1% from 2023.
Lockheed Martin’s Marlin is a 10-foot-long autonomous underwater vehicle (AUV) system. It uses advanced sensors and high-definition video to create 3D models of its undersea environment. With an operational depth of up to 1,000 feet below the surface, it caters to multiple civil and military operations. LMT has also been building small A-size AUVs for more than 35 years now.
LMT boasts a long-term earnings growth rate of 4.2%. The Zacks Consensus Estimate for 2024 sales indicates growth of 2.4% from 2023.
Price Performance
In the past year, shares of Huntington Ingalls have gained 39.3% against the industry’s 2.4% decline.
Image Source: Zacks Investment Research
Zacks Rank
Huntington Ingalls currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks (Strong Buy) here.