Huntington Ingalls Wins $152M Contract For USS Enterprise

Huntington Ingalls Industries, Inc. (NYSE:HII) has won a contract from the U.S. Navy for advance planning of the detail design and production of the fiscal 2018 nuclear powered aircraft carrier, USS Enterprise (CVN 80).

The contract is valued at $152 million and the contracting activity is Naval Sea Systems Command, Washington Navy Yard, WA, District of Columbia.

Per the contract, Huntington Ingalls will carry out research and development, integrated designing, engineering, and purchase of long lead-time materials. Designing and production of a nuclear-powered aircraft carrier involves vast technical and expert knowledge regarding the ship’s mission, design, systems and nuclear reactor plants.

Work is scheduled to be complete by Mar 2018 and will be performed in Newport News, VA. The aircraft it will be delivered to the Navy in 2027. The contract will use fiscal 2016 shipbuilding and conversion (Navy); and fiscal 2016 research, development, test and evaluation (Navy) funds.

The Enterprise (CVN 80), Gerald R. Ford class’ third aircraft carrier, bears the name of the Navy’s first nuclear-powered aircraft carrier, USS Enterprise (CVN 65). Once it enters service, Enterprise will retire the USS Dwight D. Eisenhower, a Nimitz-class ship.

Huntington Ingalls is the prime industrial employer in Virginia. It is the sole designer and manufacturer of nuclear-powered aircraft carriers in the U.S. Over 70% of the active U.S. Navy fleet consists of Huntington Ingalls ships. The company has developed an exclusive ability in all aspects of aircraft carrier designing, production, innovation, repair, and technical and engineering support.

Huntington Ingalls currently has a Zacks Rank #3 (Hold).

Stocks to Consider

Some better-ranked stocks in the aerospace and defense space include Engility Holdings, Inc. (NYSE:EGL) , BAE Systems (LON:BAES) plc (OTC:BAESY) and CAE Inc. (TO:CAE) , each carrying a Zacks Rank #2 (Buy).

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