HII secures spot on $267 million Navy training contract

MCLEAN, Va. - HII (NYSE:HII) announced Wednesday that its Mission Technologies division has been selected as one of multiple companies on a U.S. Navy contract to provide training products and services aimed at enhancing fleet readiness.

The indefinite-delivery, indefinite-quantity (IDIQ) contract has a ceiling of $267 million and will allow HII to compete for task orders from the Naval Education and Training Professional Development Center and other naval education training commands.

According to the press release, the contract will support education, training, career development and personnel advancement for the Navy’s force development enterprise. This includes curriculum development and learning management systems such as Navy e-learning, which enables sailors to access on-demand web-based training.

Michael Lempke, president of Mission Technologies’ Global Security business, said the initiative "empowers sailors with the technical skills they need to perform at the highest level, while opening doors for career advancement and lifelong learning."

The training services are designed to help sailors meet changing mission requirements in what the company describes as an increasingly network-centric warfare environment.

HII, headquartered in Virginia with a workforce of 44,000, provides engineering and technology solutions for multi-domain training, creating realistic training environments for mission rehearsal support. The company is also the nation’s largest military shipbuilder with a history spanning more than 135 years.

The contract represents part of the Navy’s ongoing efforts to enhance professional growth and readiness for enlisted personnel through improved training resources. With a moderate debt level and consistent dividend payments for 14 consecutive years, HII demonstrates the financial stability needed to support long-term military contracts.

In other recent news, Huntington Ingalls Industries reported second-quarter 2025 earnings that exceeded market expectations. The company posted earnings per share of $3.86, surpassing the forecasted $3.26, and revenue reached $3.08 billion, outpacing the anticipated $2.93 billion. This performance was noted in an earnings call transcript, highlighting an 18.4% surprise in earnings per share. Additionally, Huntington Ingalls was awarded a $276 million contract modification for the overhaul of the USS Harry S. Truman, as announced by the U.S. Department of Defense. This contract involves advance planning and long-lead-time materials for the aircraft carrier’s Refueling Complex Overhaul. Analyst firms have also adjusted their outlooks on the company, with BofA Securities raising its price target to $260 while maintaining an Underperform rating, citing stronger shipbuilding volumes. Meanwhile, Bernstein increased its price target to $305, following Huntington Ingalls’ earnings beat and favorable free cash flow guidance. These developments reflect a growing investor interest in the shipbuilding sector and Huntington Ingalls’ strategic positioning within it.

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