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MCLEAN, Va. - HII’s Mission Technologies division has been selected as one of multiple companies on a U.S. Army contract to provide live training solutions, according to a press release statement issued Monday. The company, currently valued at $9.1 billion, has shown strong momentum with a 24.9% year-to-date return. According to InvestingPro analysis, HII appears undervalued based on its Fair Value calculations.
The indefinite-delivery, indefinite-quantity (IDIQ) contract has a ceiling of $379 million and will allow HII (NYSE: HII) to compete for delivery orders for the Army’s Live Training, Ranges and Combat Training Centers (LTRaC). The contract adds to HII’s robust business operations, which generated $11.46 billion in revenue over the last twelve months. InvestingPro subscribers can access detailed financial analysis and 12+ additional expert insights about HII’s business performance.
The contract, known as MAC 3, is one of three contract vehicles under the LTRaC program. It will provide new products and equipment, technology refreshment, modernization, studies and development efforts for existing and new live-fire ranges for both the Army and U.S. Marine Corps.
"Training is absolutely vital for warfighter readiness," said Michael Lempke, president of Mission Technologies’ Global Security group. "We look forward to supporting the Army’s evolution of training systems that will provide realistic and efficient preparation for combat scenarios."
The contract was awarded by the Army’s Program Executive Office for Simulation, Training and Instrumentation (PEO STRI).
HII provides engineering and technology solutions for multi-domain training, creating realistic live and synthetic training environments for mission rehearsal support.
The Virginia-headquartered company is the nation’s largest military shipbuilder with a workforce of 44,000 employees. HII delivers capabilities ranging from ships to unmanned systems, cyber, intelligence surveillance and reconnaissance, artificial intelligence, machine learning and synthetic training.
In other recent news, Huntington Ingalls Industries reported first-quarter earnings that exceeded expectations with an earnings per share (EPS) of $3.79, surpassing the forecast of $2.84. However, the company’s revenue fell short of expectations, coming in at $2.73 billion compared to the anticipated $2.80 billion. Despite the revenue miss, the operating margin improved to 5.9% from 5.5% in the previous year. Additionally, Huntington Ingalls was awarded a $49.7 million contract modification for work on the USS John C. Stennis, with completion expected by October 2026. Analyst firm Bernstein raised its price target for Huntington Ingalls to $257 from $232, maintaining a Market Perform rating, citing strong EPS performance and potential for improved margins. The company also announced strategic initiatives focused on new product developments and international partnerships to bolster its competitive position. Huntington Ingalls’ backlog stands at $48 billion, with $28 billion funded, indicating robust future business prospects. These developments reflect the company’s ongoing efforts to enhance its financial performance and operational efficiency.
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