HII to develop laser weapon system for U.S. Army

MCLEAN, Va. - HII (NYSE: HII), a global defense provider with a market capitalization of $7.9 billion and annual revenue of $11.54 billion, has been selected to create a High-Energy Laser (HEL) weapon system prototype for the U.S. Army’s Rapid Capabilities and Critical Technologies Office (RCCTO), according to a company statement today. The system is designed to target and neutralize enemy Unmanned Aircraft Systems (UAS) and will be adaptable for fixed-site defense or vehicle integration.

The HEL prototype will be developed by HII’s Mission Technologies division, focusing on acquiring, tracking, and destroying UAS threats. Grant Hagen, president of HII’s Warfare Systems group within the Mission Technologies division, expressed the company’s commitment to delivering a system that aligns with the Army’s protection requirements and U.S. strategic goals. He highlighted the importance of the system’s adaptability and affordability, as well as its role in safeguarding U.S. forces.

The prototype will adhere to the Modular Open Systems Approach (MOSA) architecture, ensuring interoperability and flexibility for future upgrades. This approach facilitates the interchangeability of subsystems and software, supporting the Army’s objectives for rapid innovation and supply chain resilience. HII will also provide the necessary data to enable competition among subsystems and key components. According to InvestingPro data, HII maintains strong financial health with consistent profitability and 13 consecutive years of dividend increases, demonstrating its reliability in executing defense contracts.

The RCCTO has initiated an Other Transaction agreement with HII, aiming to eventually transition the HEL system to the U.S. Army’s Program Executive Office for Missiles and Space. The prototype will undergo field testing to assess safety and operational suitability, with successful demonstrations leading to low-rate initial production.

HII, known for being the nation’s largest military shipbuilder, offers a range of defense capabilities extending from ships to cyber, ISR, AI/ML, and synthetic training. With a workforce of 44,000 and a current P/E ratio of 14.4, the company continues to advance U.S. national security interests. This new contract to develop a laser weapon system underscores HII’s role in providing cutting-edge defense solutions. InvestingPro analysis suggests the stock is currently undervalued, with analysts setting price targets ranging from $145 to $312 per share. For deeper insights into HII’s financial health and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

The information for this article is based on a press release statement.

In other recent news, Huntington Ingalls Industries (HII) announced securing a $182 million contract to provide logistics support for U.S. Air Force F-16 pilot training devices. This five-year task order involves engineering maintenance for the Mission Tactics Trainer Training System Support Center, primarily located in Mesa, Arizona. Additionally, HII has been awarded a $147 million contract by the U.S. Navy for comprehensive training support services, emphasizing their ongoing commitment to military readiness. HII’s Mission Technologies division will handle installation, certification, and maintenance tasks under this agreement. In a separate development, HII has integrated a 3D-printed valve manifold assembly into the construction of a U.S. Navy aircraft carrier, marking a significant advancement in shipbuilding processes. This innovative approach is expected to enhance manufacturing quality and reduce lead times. Furthermore, recent initiatives by former President Donald Trump to revitalize the U.S. shipbuilding industry have been announced, aiming to counter China’s dominance in the sector. These initiatives include establishing a new office of shipbuilding within the White House and introducing special tax incentives.

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