HII wins $74 million contract for space simulation capabilities

MCLEAN, Va. - Defense contractor HII (NYSE:HII), a $10.4 billion market cap company with annual revenues exceeding $11.4 billion, announced today it has secured a $74 million task order to provide modeling and simulation capabilities to the U.S. Air Force that will inform technology decisions for the space community. According to InvestingPro data, the company maintains strong financial health with a fair overall rating.

Under the five-year contract, HII’s Mission Technologies division will continue supporting the U.S. Air Force Research Laboratory’s Space Vehicles Directorate, delivering end-to-end modeling and simulation capabilities to the U.S. Air Force, U.S. Space Force and strategic partners. The company’s stock has shown impressive momentum, with a 32.8% return over the past six months and trades at a P/E ratio of 19.3x.

The work includes developing simulations enabling space units to train from their wartime locations and creating decision aid software that uses machine-to-machine data collection for space command and control organizations.

"Modeling and simulation are central to the U.S. Air Force’s ability to meet its top priorities, particularly in the space domain, which presents a unique set of challenges," said Michael Lempke, president of Mission Technologies’ Global Security group, in a press release statement.

The task order was awarded under the U.S. Department of Defense’s Information Analysis Center Multiple Award Contract vehicle by the U.S. Air Force’s 774th Enterprise Sourcing Squadron.

Work will be performed at Kirtland Air Force Base in New Mexico, according to the company announcement.

HII, formerly known as Huntington Ingalls Industries, describes itself as a global defense provider with a workforce of 44,000. The company develops technology for the U.S. Space Force and various combatant commands, including U.S. Space Command and U.S. Strategic Command. InvestingPro analysis reveals the company has maintained dividend payments for 14 consecutive years, currently offering a 2% yield. For deeper insights into HII’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Huntington Ingalls Industries (HII) reported several significant developments. The company launched the Virginia-class submarine Arkansas into the James River from its Newport News Shipbuilding division, marking a key step in the vessel’s final outfitting and testing process. Additionally, HII has secured an order from Hitachi for over a dozen REMUS 300 uncrewed underwater vehicles, which are part of a multi-year delivery program. The REMUS 300 is already in service with several nations and supports the U.S. Navy’s Lionfish program.

Moreover, HII’s stock rating was upgraded by TD Cowen from Hold to Buy, with a price target of $300. This upgrade reflects the firm’s optimism about the potential recovery of HII’s shipbuilding margins. The company also completed compatibility testing of the REMUS 620 underwater vehicle with submarine torpedo tube systems, preparing for further testing later this summer. In another strategic move, HII announced a partnership with C3.ai to integrate artificial intelligence into its shipbuilding operations, aiming to enhance production efficiency and support the U.S. Navy’s fleet readiness.

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