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HII Selected to Compete on $25.4 Billion Microelectronics Multi-Award Contract

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MCLEAN, Va., Jan. 20, 2026 (GLOBE NEWSWIRE) -- HII (NYSE: HII) announced today that its Mission Tech...

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AI Summary

HII's Mission Technologies division secured a pivotal $25.4 billion ATSP5 contract, enhancing its role in providing critical engineering solutions. This contract ensures rapid access to advanced microelectronics, crucial for national defense, and positions HII to significantly influence the technological preparedness of U.S. military operations.

Sentiment Rationale

Historical patterns show significant stock price appreciation following large contract awards in the defense sector; similar contracts have historically lifted HII's stock performance by enhancing revenue visibility.

Trading Thesis

Bullish on HII as the ATSP5 contract will drive revenue growth over the next decade.

Market-Moving

  • The $25.4 billion contract significantly boosts HII's revenue prospects.
  • HII's contract enhances its competitive position in the defense sector.
  • Market sentiment may handle HII positively due to increased funding for defense technology.
  • Investor confidence could rise based on HII's track record in national security.

Key Facts

  • HII's Mission Technologies wins $25.4 billion ATSP5 contract.
  • The contract enables rapid access to advanced microelectronics for defense needs.
  • HII's expertise will enhance system sustainability and technological superiority.
  • Contract supports modernization across DoD and federal civilian agencies.
  • HII focuses on anti-obsolescence solutions for national security.

Companies Mentioned

  • Defense Microelectronics Activity (N/A): Awarded the contract to HII, enhancing defense capabilities.

Corporate Developments

This announcement falls under 'Corporate Developments' as it marks a significant government contract win for HII. It reflects the company's ongoing commitment to defense technology and national security.

HII Secures $25.4 Billion Microelectronics Contract

MCLEAN, Va., January 20, 2026 – HII (NYSE: HII) has been selected to participate in the Advanced Technology Support Program V (ATSP5), a significant multi-award contract valued at $25.4 billion. This 10-year indefinite delivery/indefinite quantity contract, awarded by the Defense Microelectronics Activity, includes a total of 12 companies. HII's Mission Technologies division will provide critical engineering solutions for electronic and software challenges.

Implications of the ATSP5 Contract

The ATSP5 contract is essential for the U.S. Department of Defense and various federal agencies, as it facilitates rapid access to advanced microelectronics, engineering, prototyping, and technology modernization support. This initiative aims to resolve operational problems stemming from obsolescence and expedite the deployment of advanced technologies.

“Delivering a trusted, assured supply of microelectronics directly impacts warfighter survivability, mission success, and technological superiority at a time when secure chips shape battlefield advantage,” stated Grant Hagen, president of HII’s Mission Technologies Warfare Systems group. “HII looks forward to applying more than two decades of engineering expertise to design and deploy next-generation microelectronics while sustaining systems with robust anti-obsolescence solutions.”

Scope and Services Under ATSP5

The ATSP5 contract encompasses a wide range of services that include:

  • Development of operational solutions to maintain system functionality
  • Enhancing system sophistication to address emerging threats
  • Comprehensive hardware and software support
  • Studies, analysis, design, simulation, fabrication, and prototyping
  • Integration and testing, along with limited production capabilities

HII’s team of microelectronics and software engineers brings critical expertise in reverse engineering, microelectronics assurance, and the redeployment of obsolete systems vital to national security. This is achieved through unique HII-developed tools and a model-based technical approach.

About HII

HII stands as a premier all-domain defense provider with a mission to deliver the world's most powerful ships and all-domain solutions. With a history spanning over 135 years of enhancing U.S. national security, HII is the nation’s largest military shipbuilder. The company is dedicated to providing critical capabilities, extending from ships to unmanned systems, cyber technology, intelligence, surveillance, and artificial intelligence/machine learning (AI/ML).

Based in Virginia, HII boasts a workforce of 44,000 professionals committed to creating advantages for customers to safeguard peace and freedom globally.

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