HII invests in new facility for army’s high-energy laser program

MCLEAN, Va. - Defense contractor HII (NYSE:HII), a $11.2 billion market cap company that has delivered a remarkable 50% return year-to-date according to InvestingPro data, announced Tuesday a capital investment in a new integration, production and test facility to support phase two of the U.S. Army’s Enduring-High Energy Laser (E-HEL) weapon system program.

The facility will expand HII’s existing laser capabilities and enable assembly and factory acceptance testing of high-energy laser prototypes and subsystems before field deployment. It will be equipped with advanced test capabilities for power, thermal and laser performance.

"We are proud to expand our infrastructure in support of the Army’s HEL program," said Grant Hagen, president of Mission Technologies’ Warfare Systems group.

The production facility’s capabilities align with the Army’s modular open systems approach, supporting rapid innovation, subsystem interchangeability, and supply chain resilience. It will prepare high-energy laser systems for low-rate initial production and future operational deployment.

This initiative builds on HII’s collaboration with the Army’s Rapid Capabilities and Critical Technologies Office (RCCTO), which previously awarded HII a contract to develop and test a high-energy laser prototype capable of countering Groups 1-3 Unmanned Aircraft Systems.

HII describes itself as a global defense provider with a workforce of 44,000. The company is known as the nation’s largest military shipbuilder with a 135-year history in advancing U.S. national security.

The announcement was made in a press release statement from the company.

In other recent news, Huntington Ingalls reported a strong second-quarter performance with diluted earnings per share of $3.86, surpassing the consensus estimate of $3.23. The company’s revenue reached $3.08 billion, exceeding analyst expectations of $2.94 billion. Huntington Ingalls has also been awarded a $276 million contract modification for the USS Harry S. Truman aircraft carrier overhaul, which includes funding for advance planning and materials. Additionally, the company secured a $98.5 million contract modification for the USS John C. Stennis Refueling Complex Overhaul.

HII’s Mission Technologies division was selected for a spot on a $267 million Navy training contract, enabling them to compete for task orders to enhance fleet readiness. In light of these developments, Bernstein raised its price target on Huntington Ingalls to $305, citing guidance on free cash flow, while maintaining a Market Perform rating. BofA Securities also increased its price target to $260, highlighting stronger shipbuilding volumes and increased investor interest in Navy ship demand, though it kept an Underperform rating. These developments reflect recent positive momentum for Huntington Ingalls.

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