Huntington Ingalls Industries Inc.’s HII business unit, Ingalls Shipbuilding, recently launched the USS Harrisburg, which is the 14th San Antonio-class amphibious transport dock ship, otherwise known as LPD 30. This should bolster HII’s position in the naval shipbuilding industry.

A Brief Note on HII’s LPD 30 Amphibious Ship

Landing Platform Dock (LPD) 30, the first LPD Flight II warship, is a versatile, durable and cost-effective warship that will meet the Navy and Marine Corps' needs. Using LPD 17's proven hull, this LPD variant is versatile and could be used for a wide range of military activities, from significant combat operations to humanitarian aid and disaster relief, owing to its good deck, flight deck, medical facilities and self-defense capabilities.

HII’s Growth Prospects

In response to the growing geopolitical unrest throughout the world, countries are quickly increasing their defense spending to improve their ability to wage war. Such defense spending is done on varied military products, including amphibious assault ships like LPD 30, which form an integral part of a nation’s naval security. Shipbuilders like HII are witnessing a solid order flow for their warships. The latest contract win is a bright example of that.

Growing spending on warships is likely to have prompted the Mordor Intelligence firm to forecast a compound annual growth rate of 6.5% for the global naval vessels market during the 2024-2029 period. This market growth prospect should bode well for Huntington Ingalls, which is the largest military shipbuilding company in the United States, with an expertise of more than 100 years.

HII’s shipbuilding divisions have built more types of ships than any other U.S. naval shipbuilder. The company has a handful of LPD San Antonio class Amphibious Ships in its portfolio, like the LPD 7, LPD 18, LPD 20, LPD 21 and LPD 23, along with the LPD 30.

Opportunities for HII’s Peers

Other defense companies that are likely to enjoy the perks of the expanding naval vessels market have been discussed below.

General Dynamics Corporation GD: The company’s Marine Systems segment is a leading designer and builder of surface combatant and auxiliary ships for the U.S. Navy.

On Sept. 21, 2024, General Dynamics announced that its NASSCO unit has christened and launched the USNS Lucy Stone (T-AO 209), the fifth ship in the fleet oiler program for the U.S. Navy. These ships are designed to transfer fuel to the U.S. Navy carrier strike group ships operating at sea.

BAE Systems BAESY: The company designs, builds, commissions, repairs and services a wide range of complex navy ships, from offshore patrol vessels to aircraft carriers, enabling customers to conduct broad naval operations. It also provides a collection of complementary services, such as training solutions, and maintenance and modernization programs, to support ships and equipment in service across the globe.

A joint team of engineers from BAE Systems and the UK Ministry of Defence is currently working to mature the detailed design and support solution for the Type 26 Global Combat Ship, which will serve the Royal Navy.

Northrop Grumman Corporation NOC: It supplies advanced defense systems, including navigation, control and combat systems for naval vessels. NOC is the premier provider of missile launch systems for naval surface ships.

The company's Integrated Platform Management Systems provides safe control, monitoring, steering and diagnostics on the status of a ship and its major systems.