HII’s Mission Technologies division has received a potential $3 billion task order from the Department of Defense to provide logistics and intelligence, surveillance and reconnaissance, or ISR, support to help improve joint force capabilities.
LOGIX Task Order
The McLean, Virginia-based company said Thursday the Logistics Services, ISR Operations and Next-Gen Technology, or LOGIX, task order aligns with DOD’s Joint All-Domain Command and Control, or JADC2, strategy to provide warfighters with information and decision advantage needed to improve U.S. national security.
Andy Green, executive vice president of HII and president of Mission Technologies, said the company is committed to delivering all-domain platforms to drive innovation at the speed of relevance.
“We’re pleased for the opportunity to expand our role in support of the warfighter and to continue our collaborative partnerships with teammates, technology accelerators and academia for national security initiatives around the globe,” added Green, a 2024 Wash100 awardee.
Fiscal 2024 Q3 Results
In an earnings release published Thursday, HII said its third-quarter revenue for fiscal 2024 dropped 2.4 percent to $2.7 billion. It recorded Q3 net earnings of $101 million and diluted earnings per share of $2.56.
The military shipbuilding company posted $3.6 billion in Q3 new contract awards and ended the quarter with a total backlog of approximately $49.4 billion.
Financial Performance of HII Mission Technologies, 2 Other Business Segments
The Mission Technologies segment recorded $709 million in Q3 revenues, reflecting an increase of 3.5 percent due to higher volumes in electronic warfare, cyber and space.
Third-quarter revenue of the Newport News Shipbuilding segment was $1.4 billion, down 2.8 percent from the prior-year period. The company attributed the decline to lower volumes in naval nuclear support services and cumulative adjustments on the Virginia-class submarine program and aircraft carriers.
HII’s Ingalls Shipbuilding division saw its Q3 revenues drop 6.6 percent to $664 million, driven by lower volumes in the Legend-class National Security Cutter program and amphibious assault ships.
CEO on HII’s Actions to Improve Performance
At an earnings call Thursday, HII President and CEO Chris Kastner discussed two issues that impacted the company’s third-quarter results and guidance for the year: uncertainty over the timing of an agreement for Virginia-class Block V and Block VI and Columbia-class submarines and inability to achieve its assumptions of performance improvement and risk reduction.
“Looking ahead, we continue to take decisive actions to focus on the fundamentals of shipbuilding to ensure that we finish these ships, get them delivered to the Navy, and transition to ships negotiated in the context of our current economic reality,” the chief executive told analysts.
As for measures to enhance performance, the HII board member said the company has made significant investments in leadership development and craft proficiency training, worked with the Navy to improve supply chain performance and outsourced additional work to new suppliers to expand capacity.
“We are also investing in data analytics and pilot projects utilizing AI to find faster solutions to material delivery delays and mitigate their impacts to ship assembly schedules,” Kastner stated.
“With the goal of helping to accelerate throughput in the shipyards, we are also investing in new centralized manufacturing centers of excellence for high-risk items to improve cost and schedule predictability for these build sequence critical parts,” the former HII chief financial officer added.
