Huntington Ingalls Industries Inc (HII)

History and Background

Huntington Ingalls Industries (HII) was founded in 2011 when it spun off from Northrop Grumman. It is the largest military shipbuilding company in the US, with roots tracing back to the late 19th century. Significant milestones include building numerous classes of US Navy warships and expanding its technical services offerings.

Core Business Areas

• Newport News Shipbuilding: Designs, constructs, and overhauls nuclear-powered aircraft carriers and submarines for the U.S. Navy.
• Ingalls Shipbuilding: Builds non-nuclear surface combatants, amphibious assault ships, Coast Guard cutters and national security cutters.
• Technical Solutions: Provides professional services, including fleet maintenance, modernization, training, cybersecurity, and unmanned systems.

Leadership and Structure

Chris Kastner is the President and CEO. The company is structured into three main divisions: Newport News Shipbuilding, Ingalls Shipbuilding, and Technical Solutions.

Key Offerings

• Aircraft Carriers (Ford-class): Nuclear-powered aircraft carriers. HII is the sole builder of these ships. Competitors include other defense contractors for various components, but not for the overall ship build. Revenue is significant, but not publicly broken out per product.
• Submarines (Virginia-class): Nuclear-powered attack submarines. HII shares production with General Dynamics Electric Boat. Competitors include General Dynamics Electric Boat. Revenue is significant, but not publicly broken out per product.
• Amphibious Assault Ships (America-class): Amphibious assault ships. HII is the sole builder of these ships. Competitors include other defense contractors for various components, but not for the overall ship build. Revenue is significant, but not publicly broken out per product.

Industry Overview

The defense shipbuilding industry is characterized by high barriers to entry, long-term contracts, and a heavy reliance on government funding. It is a consolidated market with a few dominant players.

Positioning

HII is the largest military shipbuilder in the US, possessing a dominant position due to its unique capabilities in nuclear shipbuilding and strong relationships with the US Navy.

Total Addressable Market (TAM)

The total addressable market for naval shipbuilding and maintenance is substantial, estimated to be hundreds of billions of dollars over the next decade. HII is positioned to capture a significant portion of this TAM through its established contracts and capabilities.

Key Competitors

• GD
• LMT
• BA

Competitive Landscape

HII's advantages lie in its specialized capabilities in nuclear shipbuilding and established relationships with the US Navy. Disadvantages include a lack of diversification compared to larger defense contractors like Lockheed Martin and General Dynamics.

Alion Science and Technology

• Year: 2021
• Acquisition Price (USD millions): 1650
• Strategic Rationale: Expanded HII's capabilities in defense technology and solutions.

Historical Growth: Historical growth data needed. Check current SEC filings for current values.

Future Projections: Future financial estimates needed. Check analyst estimates.

Recent Initiatives: Recent initiatives data needed. Check current SEC filings for current values.

Huntington Ingalls Industries is a dominant player in US naval shipbuilding, underpinned by its exclusive nuclear-powered aircraft carrier construction and strong ties to the US Navy. The company benefits from long-term contracts, providing revenue visibility. Risks include heavy reliance on government funding and potential project delays. Opportunities arise from increased defense spending and expansion into related sectors.

• GD
• LMT
• BA
• RTX

Data Sources:

• SEC Filings
• Company Investor Relations
• Industry Reports
• Analyst Estimates

Disclaimers:

This analysis is based on publicly available information and is not financial advice. Market conditions and company performance are subject to change.