HII Completes Acquisition of Advanced Manufacturing Facility to Enhance Shipbuilding Capacity in South Carolina

HII acquires a manufacturing facility in South Carolina to enhance shipbuilding capacity and support U.S. Navy programs.

Quiver AI Summary

HII has finalized its acquisition of an advanced manufacturing facility in South Carolina, enhancing its Newport News Shipbuilding operations. This move aims to increase shipbuilding capacity and support national security efforts, particularly for the U.S. Navy and AUKUS initiatives. Over 99% of the previous workforce has accepted new positions at the site, which will focus on constructing nuclear-powered submarine modules and aircraft carrier units. HII plans to create hundreds of additional jobs, leveraging the facility's modern manufacturing capabilities and strategic location. U.S. Senators Lindsey Graham and Tim Scott highlighted the positive economic impact and the critical role of this expansion in bolstering national security and the local shipbuilding industry.

Potential Positives

• HII successfully closed the acquisition of an advanced manufacturing facility, enhancing its shipbuilding capabilities.
• The acquisition will increase shipbuilding capacity and throughput, supporting critical U.S. Navy programs, including nuclear-powered submarines and aircraft carriers.
• More than 99% of the legacy workforce accepted offers to continue, ensuring a skilled workforce is maintained at the facility.
• The expansion is projected to create hundreds of additional jobs, benefiting the South Carolina economy and enhancing the local job market.

Potential Negatives

• Potential risks associated with the acquisition include the possibility that anticipated benefits may not be realized or may take longer to realize than expected.
• Management time may be diverted on acquisition and integration-related matters, which could impact other business operations.
• The cautionary statement regarding forward-looking statements highlights inherent risks and uncertainties that may affect the company's future financial performance.

FAQ

What is HII's recent acquisition about?

HII has acquired an advanced manufacturing facility in South Carolina to enhance shipbuilding capacity for its national security customers.

How many jobs will the acquisition create in South Carolina?

The acquisition is expected to create hundreds of additional jobs to support increased demand at the Charleston facility.

What types of ships will be built at the newly acquired facility?

The facility will support the construction of nuclear-powered submarine modules and aircraft carrier units for U.S. Navy programs.

What benefits does the new facility offer HII?

The facility includes advanced production capabilities, over 480,000 square feet of space, and access to transportation options, enhancing efficiency.

How does this acquisition impact the South Carolina economy?

It strengthens South Carolina's role in national security and boosts the local economy by expanding job opportunities and manufacturing capabilities.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$HII Insider Trading Activity

$HII insiders have traded $HII stock on the open market 2 times in the past 6 months. Of those trades, 1 have been purchases and 1 have been sales.

Here’s a breakdown of recent trading of $HII stock by insiders over the last 6 months:

• FRANK R JIMENEZ purchased 550 shares for an estimated $103,900
• D R WYATT (Corp VP & Treasurer) sold 400 shares for an estimated $82,096

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

$HII Hedge Fund Activity

We have seen 277 institutional investors add shares of $HII stock to their portfolio, and 317 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• VAN ECK ASSOCIATES CORP added 863,800 shares (+94.5%) to their portfolio in Q3 2024, for an estimated $228,371,444
• PRICE T ROWE ASSOCIATES INC /MD/ removed 273,443 shares (-30.3%) from their portfolio in Q3 2024, for an estimated $72,292,860
• BLACKROCK, INC. removed 262,336 shares (-7.0%) from their portfolio in Q3 2024, for an estimated $69,356,391
• GOLDMAN SACHS GROUP INC added 222,404 shares (+110.5%) to their portfolio in Q3 2024, for an estimated $58,799,169
• INVESCO LTD. removed 194,157 shares (-11.4%) from their portfolio in Q3 2024, for an estimated $51,331,227
• FIRST TRUST ADVISORS LP added 193,904 shares (+70.9%) to their portfolio in Q3 2024, for an estimated $51,264,339
• FMR LLC added 187,411 shares (+5.6%) to their portfolio in Q3 2024, for an estimated $49,547,720

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Full Release

GOOSE CREEK, S.C., Jan. 27, 2025 (GLOBE NEWSWIRE) -- HII (NYSE: HII) announced today it has closed on its acquisition of an advanced manufacturing facility and assets and begun work at its Newport News Shipbuilding (NNS) — Charleston Operations site in South Carolina.

“HII is committed to going where the labor is to increase shipbuilding capacity and increase throughput for our national security customers,” HII President and CEO Chris Kastner said. “This lets us efficiently add trained talent and state-of-the-art manufacturing capabilities to the urgent job of building ships, making it a unique opportunity to immediately accelerate throughput at Newport News Shipbuilding in support of the Navy and AUKUS.”

HII announced last month its intent to acquire the facility and associated assets. Since then, more than 99% of the legacy workforce have accepted offers to continue to work on site, supporting the construction of nuclear-powered submarine modules and aircraft carrier units for U.S. Navy programs. Working closely with the South Carolina state and regional leadership, HII plans to create hundreds of additional jobs to support the increased demand and growth at the Charleston facility.

Photos accompanying this release are available at:

https://hii.com/news/hii-closes-on-asset-acquisition-to-expand-shipbuilding-capacity/

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In addition to existing trained talent, HII’s acquisition also provides:

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  Advanced production facilities with state-of-the-art manufacturing equipment, tooling and infrastructure used to fabricate complex metal modules and structures.
  


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  Facility location on 45-acres with more than 480,000 square feet of manufacturing space.
  


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  Access to barge and rail transportation.
  


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  Access in nearby Charleston and surrounding region to rapidly growing shipbuilding ecosystem and capacity to expand a highly skilled maritime trades workforce.
  

“This is great news for the South Carolina economy. This investment will allow us to expand our manufacturing footprint more aggressively in the shipbuilding industry,” U.S. Sen. Lindsey Graham, R-S.C., said. “If you can drive it, fly it, shoot it or float it, South Carolina makes it.”

“The expansion of our nation’s largest military shipbuilder in South Carolina underscores the pivotal role our state plays in strengthening America’s national security,” U.S. Sen. Tim Scott, R-S.C., said. “The dedicated shipbuilders in the Charleston area are part of a highly skilled workforce that will propel our nation forward. This innovation and modernization in our defense industrial base will create jobs and draw resources to our state’s already robust Navy presence.”

About HII

HII is a global, all-domain defense provider. HII’s mission is to deliver the world’s most powerful ships and all-domain solutions in service of the nation, creating the advantage for our customers to protect peace and freedom around the world.

As the nation’s largest military shipbuilder, and with a more than 135-year history of advancing U.S. national security, HII delivers critical capabilities extending from ships to unmanned systems, cyber, ISR, AI/ML and synthetic training. Headquartered in Virginia, HII’s workforce is 44,000 strong. For more information, visit:

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  HII on the web:
  
  https://www.HII.com/
  
  


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  HII on Facebook:
  
  https://www.facebook.com/TeamHII
  
  


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  HII on X:
  
  https://www.twitter.com/WeAreHII
  
  


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  HII on Instagram:
  
  https://www.instagram.com/WeAreHII
  
  

Cautionary Statement Regarding Forward-Looking Statements

Statements in this release, other than statements of historical fact, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue," “guidance,” “projections,” “outlook,” and similar words or phrases or the negative of these words or phrases generally identify these forward-looking statements. Forward-looking statements include, among other things, statements relating to the Company’s future financial condition, results of operations or cash flows, and expected benefits of the transaction. Forward-looking statements are based upon assumptions, expectations, plans and projections that we believe to be reasonable when made, but which may change over time. These statements are not guarantees of future performance and inherently involve a wide range of risks and uncertainties that are difficult to predict. Specific risks that could cause actual results to differ materially from those expressed or implied in these forward-looking statements include, but are not limited to: those discussed in this release; those identified under “Risk Factors” and other important factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023 and from time to time in our other filings with the SEC; the possibility that anticipated benefits of the acquisition may not be realized or may take longer to realize than expected; the risk that management time may be diverted on acquisition and integration-related matters; and other events or circumstances that could adversely impact the business. There may be other risks and uncertainties that we are unable to predict at this time. You are urged to consider the limitations on, and risks associated with, forward-looking statements and not unduly rely on the forward-looking statements including the accuracy thereof. Forward-looking statements are based on information, plans and estimates as of the date they are made and there may be other factors that may cause actual results to differ materially from these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, subsequent events or otherwise, except as required by applicable law.

A photo accompanying this announcement is available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/5eea076b-7c75-42b9-8fbe-72479d514f66

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.