Huntington Ingalls Industries’ Ingalls Shipbuilding division was awarded a U.S. Navy contract on December 19, 2025 to design and construct a new Small Surface Combatant (SSC). The SSC will be built on the proven Legend‑class National Security Cutter (NSC) design, allowing the Navy to field a capable warship more quickly and at lower risk than a brand‑new design would require.
The award expands HII’s shipbuilding portfolio beyond its existing destroyer, amphibious assault ship and submarine programs. It adds a new platform to the company’s backlog, creating a multi‑year revenue stream that supports margin recovery and diversifies the customer base within the Navy’s surface fleet. The contract also signals continued confidence from the Department of Defense in HII’s ability to deliver complex vessels on schedule and within budget.
Ingalls Shipbuilding is already constructing three classes of ships—DDG 51 Flight III destroyers, LHA amphibious assault ships, and LPD Flight II amphibious transports—while simultaneously building the new SSC. The company has invested more than $1 billion in infrastructure, facilities and tooling at its Pascagoula, Mississippi yard, and it distributes work to 23 outsourcing partners to manage the increased workload.
Financially, HII reported Q3 2025 revenue of $3.2 billion, up 16.1% year‑over‑year, and an operating margin of 5.0%, a rise from 3.0% the previous year. The company’s backlog reached $55.7 billion, and it reaffirmed its full‑year guidance, underscoring confidence in sustained demand and execution. The SSC contract, while its value was not disclosed, is expected to contribute to this positive trajectory by adding a new, predictable revenue source.
The SSC program is a key element of the Navy’s fleet‑modernization strategy, especially after the cancellation of the Constellation‑class frigate program in late November. By basing the SSC on the Legend‑class NSC design, HII can deliver a capable warship faster and more cost‑effectively, reinforcing its position as the Navy’s primary shipbuilder and demonstrating its operational flexibility and capacity to integrate new programs with existing shipbuilding commitments.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.