1. HII expands contract with Babcock for Virginia-class submarine construction. 2. Babcock to build submarine assemblies, increasing supply chain resilience. 3. Partnership supports U.S. and U.K. submarine programs, enhancing AUKUS collaboration. 4. Successful previous collaboration on naval decommissioning strengthens future capabilities. 5. HII's strategic position bolstered by new manufacturing capabilities from Babcock.
FAQ
Why Bullish?
The expansion indicates increased orders and production capabilities for HII, historically linked to positive price movements.
How important is it?
The news directly enhances HII's production capabilities and market position, making it likely to affect stock prices positively.
Why Long Term?
The strategic partnership and increased manufacturing capabilities suggest sustained benefits over several quarters, particularly in defense spending.
HII Expands Partnership with Babcock International Group for Virginia-Class Submarine Construction
ARLINGTON, Va., Dec. 09, 2025 (GLOBE NEWSWIRE) -- HII (NYSE: HII) has announced a significant contract with Babcock International Group, aimed at enhancing the construction throughput for Virginia-class submarines at HII’s Newport News Shipbuilding (NNS) division. This contract is a crucial step in strengthening HII's submarine supply base and represents the first outsourced contract for Virginia-class submarine components to be awarded to Babcock.
Details of the Strategic Partnership
The new contract authorizes Babcock to manufacture complex submarine assemblies at its Rosyth facility in Scotland, specifically for the Virginia-class Block VI fast-attack submarines. This collaboration is expected to increase the number of qualified suppliers capable of performing large structural work, ensuring adherence to high-quality standards.
- Contract Type: Virginia-class outsourced contract
- Facility: Babcock's Rosyth facility in Scotland
- Submarine Model: Virginia-class Block VI fast-attack submarines
Statements from Leadership
Chris Kastner, HII president and CEO, commented, “This is a significant next step in delivering on our joint commitment to enhance both organizations’ capabilities, for the benefit of U.S. and U.K. programs.” He emphasized that leveraging Babcock's expertise will reinforce the supplier base, strengthen U.S. submarine production, and support the trilateral AUKUS partnership.
David Lockwood, CEO of Babcock International Group, remarked, “Babcock’s advanced manufacturing expertise has enabled us to build on our established missile tube assembly capability, to deliver additional components for the U.S. submarine fleet.” He added that the partnership with HII allows for optimized capabilities beneficial to the wider AUKUS security collaboration.
Recent Collaborations and Future Prospects
The partnership between HII and Babcock dates back to July 2023, when both companies entered into a strategic agreement focusing on naval and civil nuclear decommissioning and construction opportunities in the U.S. and U.K. The collaboration has proven fruitful, with efforts underway to integrate Australian suppliers into the U.S. submarine industrial base through the Australian Submarine Supplier Qualification (AUSSQ) program.
Furthermore, at the Defence and Security Equipment International (DSEI) event earlier this year, HII and Babcock signed a memorandum of understanding to combine HII’s REMUS unmanned underwater vehicles (UUVs) with Babcock’s advanced submarine Weapon Handling and Launch Systems (WHLS). This initiative aims to enhance UUV torpedo tube launch and recovery systems, thereby fortifying the operational advantages of the U.K. Royal Navy and its allies.
About HII
HII is a leading global defense provider dedicated to delivering powerful ships and robust solutions for national security. As the largest military shipbuilder in the U.S., HII has over 135 years of experience in enhancing U.S. national security with a workforce of approximately 44,000 employees. Learn more about HII on their official website: HII.com.
About Babcock International Group
Babcock is an international defense company that specializes in enhancing defense capabilities worldwide. The company focuses on technology integration, engineering, and infrastructure management to improve the reliability and efficiency of critical defense assets. To find out more, visit BabcockInternational.com.
Contact Information
For further inquiries, please contact:
- Todd Corillo (HII): Todd.T.Corillo@hii-co.com | (757) 688-3220
- Chloé Walters (Babcock): Chloe.Walters@babcockinternational.com | +44(0)7860 653722