HII Lands $336 Million Advance Procurement Award for Next Ford-Class Aircraft Carrier

Newport News-based shipbuilder HII (HII) has been awarded a $336 million advance procurement contract by the U.S. Navy to support early work on a future Gerald R. Ford-class aircraft carrier, according to a report from The Defense Post.

Advance procurement contracts allow the Navy to purchase long-lead-time materials — such as steel, major components, and specialized equipment — before a full construction contract is finalized. This approach helps keep major shipbuilding programs on schedule, since carriers require years of preparation before assembly can begin in earnest.

The work will be carried out at HII’s Newport News Shipbuilding division in Virginia, the nation’s sole builder of nuclear-powered aircraft carriers. The Ford class represents the current generation of U.S. Navy carriers, with several hulls already in service or under construction.

For HII, the award adds to a backlog anchored by naval shipbuilding. The company, which also operates the Ingalls shipyard in Mississippi and the Mission Technologies services segment, is one of two primary builders of military ships for the U.S. armed forces.

Shares of HII closed at $287.67, down 1.03% from the previous close of $290.65, giving the company a market capitalization of roughly $11.46 billion. The stock’s move came amid broader trading in the aerospace and defense sector.

Advance procurement awards typically precede a larger, multi-billion-dollar construction contract once budget approvals and negotiations are complete. Such awards give shipyards visibility into future workload and allow suppliers to ramp up production of critical components ahead of the formal award.

Source: original release

What to watch

• Follow-on construction contract award for the future Ford-class hull, which would substantially expand HII’s backlog
• HII’s upcoming quarterly earnings, for updates on Newport News workload and shipbuilding margins
• Navy budget requests for carrier procurement in forthcoming appropriations cycles