HII’s order backlog has surged to more than $50 billion, fueled by accelerated U.S. Navy programs for Virginia-class submarines and Arleigh Burke–class destroyers. Management forecasts book-to-bill ratios above 1.2x for the next three fiscal years, reflecting multi-year contracts awarded in 2025 for nine additional Virginia-class submarines valued at approximately $30 billion. This robust backlog underpins revenue growth projections of 8–10% annually through 2028 and strengthens the company’s long-term revenue visibility.

As of December 31, 2025, HII reported cash and short-term investments of $1.8 billion against total debt of $3.2 billion, resulting in a net debt leverage ratio below 1.0x EBITDA. The company maintains an unutilized revolving credit facility of $1.5 billion and expects to generate operating cash flow exceeding $2.2 billion in fiscal 2026. Low leverage and ample liquidity provide financial flexibility to invest in unmanned systems and digital solutions without diluting shareholders.

HII’s Mission Technologies division secured an indefinite-delivery/indefinite-quantity contract from the Missile Defense Agency with a ceiling of $151 billion. This enterprise-wide vehicle enables rapid competition for work in directed energy, C2 integration, cyber operations, microelectronics and synthetic training solutions. Initial task orders valued at $200 million are expected to be awarded in Q2 2026, positioning HII to capture a significant share of homeland defense modernization spending over the next decade.

HII has completed a 100% expansion of its Portchester facility in the United Kingdom, adding 75,000 square feet of manufacturing and test space for REMUS unmanned underwater vehicles. This investment, which brings total UK capacity to 150,000 square feet, supports anticipated contract awards from NATO allies and strengthens after-sales service capabilities. The expanded facility is forecast to contribute an additional $50 million in annual revenue beginning in 2027.