HII Secures $336M Navy Contract for Carrier CVN 82 Materials

Huntington Ingalls Industries (NYSE: HII) has secured a $336 million U.S. Navy contract to procure long-lead time propulsion plant materials for the future aircraft carrier CVN 82, designated as the USS William J. Clinton. The undefinitized agreement provides early funding for Newport News Shipbuilding as project planning advances toward a 2027 keel laying.

"This contract sends an important demand signal to the thousands of suppliers across the nation who make up the aircraft carrier industrial base," said Bryan Caccavale, vice president of program management at Newport News Shipbuilding, in a statement regarding the award.

Advancing the Ford-Class Fleet

The newly funded materials will support the construction of the fifth vessel in the U.S. Navy's Gerald R. Ford-class aircraft carrier series. According to a Naval Technology report, project timelines for the future USS William J. Clinton anticipate an official keel laying in 2027 and a scheduled vessel launch in 2032.

Work under the $336 million undefinitized contract is scheduled to run through March 2039. Undefinitized contracts allow defense contractors to begin critical work and secure raw materials before final contract terms and profit rates are fully negotiated with the Department of Defense.

Industrial Base Implications

Long-lead time procurement contracts help stabilize the defense manufacturing supply chain by ordering specialized components, such as nuclear propulsion elements and heavy structural steel, years in advance of final assembly. These advance orders help mitigate supply chain bottlenecks and control costs across the tier-one and tier-two suppliers supporting major naval programs.

For Huntington Ingalls Industries, the award reinforces order backlog visibility at its Newport News Shipbuilding division in Virginia, where the company builds all nuclear-powered aircraft carriers for the U.S. Navy.