What Happened?
Shares of aerospace and defense company Huntington Ingalls (NYSE:HII) jumped 3.1% in the afternoon session after the stock extended gains from the previous session as the U.S. Department of War awarded the shipbuilder a $5.1 billion contract to refuel and overhaul the nuclear-powered aircraft carrier USS Harry S. Truman, a company press report revealed.
Under the terms detailed by the U.S. Department of War, Huntington Ingalls' Newport News Shipbuilding division received a fixed-ceiling incentive contract valued at $5.10 billion, with options potentially extending total compensation to $5.18 billion.
Adding to the gains, the company disclosed that it also secured a U.S. Navy award to construct 10 ROMULUS unmanned surface vessels under the Medium Unmanned Surface Vessel program. Huntington Ingalls stated that the unmanned vessel project marks a critical milestone in deploying operational autonomy across the fleet.
The shares were trading at $268.10, up 3.3% from the previous close.
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What Is The Market Telling Us
Huntington Ingalls’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 11 months ago when the stock gained 9.1% on the news that it reported strong third-quarter results that surpassed Wall Street expectations.
Revenue grew 16.1% year on year to $3.19 billion, beating analysts' forecasts. Earnings per share were $3.68, also outperforming predictions and showing a significant increase from the $2.56 reported a year earlier. Adding to the positive sentiment, Huntington Ingalls's backlog of future work grew 12.7% over the last year to $55.7 billion, indicating a solid pipeline of future business.
Huntington Ingalls is down 23.3% since the beginning of the year, and at $268.10 per share, it is trading 40.9% below its 52-week high of $453.73 from March 2026. Despite the year-to-date decline, investors who bought $1,000 worth of Huntington Ingalls’s shares 5 years ago would now be looking at an investment worth $1,389.
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