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    Trump’s New Navy Frigate and Battleship Plans Might Change The Case For Investing In HII

    Simply Wall St·01/05/2026 02:17:51
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    • In recent days, President Trump announced that Huntington Ingalls Industries will build a new fleet of U.S. Navy frigates based on a proven Coast Guard design, alongside plans for a new “Trump class” of battleships where Huntington Ingalls and General Dynamics are expected to be the primary builders.
    • This combination of fresh frigate work and potential battleship awards could materially reshape Huntington Ingalls’ future workload, revenue mix, and long-term visibility on U.S. naval shipbuilding programs.
    • We’ll now examine how this prospective wave of new Navy frigate and battleship contracts could reshape Huntington Ingalls’ existing investment narrative.

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    Huntington Ingalls Industries Investment Narrative Recap

    To own Huntington Ingalls Industries, you need to believe the U.S. will keep funding large manned ships and advanced maritime technology, and that HII can execute on a heavy backlog despite labor and supply chain challenges. The new frigate and “Trump class” battleship plans, if converted into funded contracts, would strengthen short term revenue visibility but also heighten dependence on timely program awards, which is already one of the key risks for the business.

    Among recent announcements, the extended partnership with Babcock International to support Virginia class submarine throughput stands out as closely related to this news. It underlines how HII is preparing for higher volumes on complex naval programs, which matters if frigate and battleship work accelerates. Together, these developments tighten the focus on execution risk, workforce capacity and the company’s ability to manage a larger, more complex backlog without margin slippage.

    Yet even with all this apparent opportunity, investors should be aware of how much hinges on the timing and certainty of future Navy contract awards...

    Read the full narrative on Huntington Ingalls Industries (it's free!)

    Huntington Ingalls Industries’ narrative projects $13.6 billion revenue and $785.0 million earnings by 2028. This requires 5.4% yearly revenue growth and a $260.0 million earnings increase from $525.0 million today.

    Uncover how Huntington Ingalls Industries' forecasts yield a $331.89 fair value, a 5% downside to its current price.

    Exploring Other Perspectives

    HII 1-Year Stock Price Chart
    HII 1-Year Stock Price Chart

    Seven members of the Simply Wall St Community currently see HII’s fair value between US$180 and about US$452 per share, reflecting very different expectations. Against this wide range, the concentration of HII’s fortunes in a few large Navy programs means any delay or reshaping of future awards could have outsized implications for how those expectations play out.

    Explore 7 other fair value estimates on Huntington Ingalls Industries - why the stock might be worth 49% less than the current price!

    Build Your Own Huntington Ingalls Industries Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.