HII Shortlisted for $25B Pentagon Contract; Charleston Shipyard Delivers First Unit in 40 Days
HII has been shortlisted by the Pentagon for a potential $25 billion contract and its Charleston shipyard delivered its first unit within 40 days of the January 2025 acquisition. The 480,000 square-foot facility has exceeded 2025 production targets through partnerships with 23 shipyards supporting submarine and carrier programs.
1. Pentagon Shortlists HII for $25 Billion Attack Submarine Program
The U.S. Navy has placed Huntington Ingalls Industries (HII) on a shortlist for a potential $25 billion contract to design and build the next generation of attack submarines. This designation follows rigorous technical evaluations and positions HII to compete alongside two other defense primes. Award of this multiyear agreement—expected in late 2026—would encompass detailed design work, construction of lead and follow‐on vessels, and integrated logistics support. Analysts estimate the program could span 15 years and deliver up to 15 submarines, reinforcing HII’s backlog and supporting more than 7,000 manufacturing jobs across Virginia and Mississippi shipyards.
2. One Year Milestone at NNS Charleston Operations
On January 22, 2026, HII marked the first anniversary of its Newport News Shipbuilding (NNS) Charleston Operations facility in Goose Creek, South Carolina. Since acquiring the 45‐acre site in January 2025, the division has delivered its inaugural submarine module within 40 days and surpassed its 2025 production targets by 12 percent. The facility, featuring 480,000 square feet of covered manufacturing space, supports both submarine and aircraft carrier programs and leverages barge and rail access to streamline supply chain logistics.
3. Distributed Shipbuilding Initiative Expands Capacity
To accelerate ship delivery rates, HII has forged partnerships with 23 regional shipyards and fabricators beyond its traditional labor markets. This distributed shipbuilding model aims to raise annual construction capacity by 30 percent before 2028. In parallel, the company is evaluating a potential fourth U.S. shipyard site to further boost throughput. By decentralizing module fabrication and assembly, HII projects savings of up to 15 percent per hull through reduced lead times and localized workforce deployment.
4. Workforce Growth and Local Economic Impact
HII’s workforce now exceeds 44,000 employees nationwide, with the South Carolina team growing from zero to more than 600 shipbuilders within one year. The Goose Creek operations have injected an estimated $75 million in local wages and vendor contracts into the Lowcountry economy. NNS President Kari Wilkinson highlighted ongoing recruitment drives targeting welders, pipefitters and machinists to sustain production ramps, while Navy leadership confirmed that enhanced capacity will be critical to meeting a requirement for 66 attack submarines by 2040.