HII Launches DDG 137 Fabrication, Outsourcing 2.5M Hours to Six Partner Yards
HII•HII’s Ingalls division commenced fabrication of the Navy’s Flight III Arleigh Burke-class destroyer DDG 137, engaging six partner yards across Texas, Louisiana, Mississippi and Florida and planning 2.5 million outsourced shipbuilding hours. The company is also enhancing its naval sustainment market position through expanded modernization support and recent contract wins.
1. Ingalls Begins DDG 137 Fabrication
On July 1, HII’s Ingalls Shipbuilding division officially began fabrication of the future USS John F. Lehman (DDG 137), marking the start of construction for the Navy’s newest Flight III Arleigh Burke-class destroyer. The milestone leverages a distributed shipbuilding model with six partner yards in Texas, Louisiana, Mississippi and Florida producing major structural units, allowing Ingalls to focus on final assembly in Pascagoula.
2. Distributed Shipbuilding and Outsourcing Strategy
HII plans to outsource more than 2.5 million shipbuilding hours in 2026 as part of its distributed production strategy, aimed at expanding capacity and enhancing industrial base resilience. This approach supports accelerated delivery timelines, optimizes resource utilization and mitigates labor constraints across the supply chain.
3. Naval Sustainment Market Expansion
Alongside new construction, HII is strengthening its role in the naval sustainment market by leveraging sustainment expertise in modernization support and securing multi-year Navy contracts. This diversified revenue stream complements its shipbuilding backlog and enhances long-term growth prospects.
