Huntington Ingalls Industries, Inc. (HII): Business Model Canvas [Jan-2025 Mis à jour]

Dans le monde des enjeux élevés de la défense maritime, Huntington Ingalls Industries (HII) est un colosse, transformant l'ingénierie navale de la simple construction navale en un écosystème sophistiqué d'innovation technologique et d'infrastructure de sécurité nationale. À l'intersection de la conception de pointe, des partenariats stratégiques et de l'expertise maritime inégalée, HII fabrique non seulement des navires, mais des instruments puissants de stratégie géopolitique qui représentent le summum des capacités navales américaines. Leur toile de modèle commercial révèle une approche complexe et méticuleusement modifiée qui va bien au-delà de la fabrication traditionnelle, positionnant l'entreprise en tant qu'architecte critique des solutions de défense maritime pour les États-Unis et ses alliés mondiaux.

Huntington Ingalls Industries, Inc. (HII) - Modèle commercial: partenariats clés

Navy américaine et ministère de la Défense en tant que principaux partenaires contractuels

En 2024, Huntington Ingalls Industries maintient 95% de ses revenus des contrats du gouvernement américain, en particulier avec la marine américaine et le ministère de la Défense.

Type de contrat	Valeur annuelle	Durée du contrat
Constructeur naval	8,6 milliards de dollars	Plurian
Construction de sous-marins nucléaires	5,2 milliards de dollars	10-15 ans

Sous-traitants et fournisseurs

Hii collabore avec 350+ fournisseurs directs dans plusieurs secteurs de technologie de défense.

• Northrop Grumman
• Dynamique générale
• Lockheed Martin
• Systèmes BAE

Technologies de technologie stratégique et d'ingénierie

Partenaire	Focus technologique	Valeur de collaboration
Mit	Systèmes navals avancés	12,5 millions de dollars par an
Georgia Tech	Technologies maritimes autonomes	9,3 millions de dollars par an

Institutions de recherche et universités

HII s'associe à 27 institutions académiques pour le développement des talents et l'innovation.

• École de troisième cycle navale
• Université de Virginie
• Université de Stanford
• Université du Texas

Huntington Ingalls Industries, Inc. (HII) - Modèle d'entreprise: activités clés

Conception et construction de navires de guerre et de sous-marins navals

En 2023, HII a livré 3 navires navals à la marine américaine. Le chiffre d'affaires total des navires navals était de 7,48 milliards de dollars.

Type de navire	Production annuelle	Valeur du contrat
Destructeurs	2	2,3 milliards de dollars
Sous-marins	1	3,5 milliards de dollars

Fabrication de porte-avions à propulsion nucléaire

Hii est le seul fabricant de porte-avions de la marine américaine. Le contrat de construction actif actif est de 13,2 milliards de dollars pour les transporteurs de classe USS Gerald R. Ford.

• Construction en cours USS Enterprise (CVN-80)
• Date de livraison projetée: 2028
• Investissement total dans le programme des transporteurs: 16,5 milliards de dollars

Maintenance et modernisation des navires navals

Le segment de maintenance de HII a généré 4,6 milliards de dollars de revenus en 2023.

Catégorie de maintenance	Revenus annuels
Réparation des navires	2,1 milliards de dollars
Modernisation de la flotte	1,5 milliard de dollars
Support technique	1 milliard de dollars

Développement et production intégrés du système de défense

Les revenus de production de systèmes de défense ont atteint 3,2 milliards de dollars en 2023.

• Systèmes de défense antimissile
• Systèmes de combat naval
• Plates-formes maritimes autonomes

Services de support technique et de réparation pour les plates-formes maritimes

Les services de support technique ont généré 2,8 milliards de dollars de revenus pour 2023.

Type de service	Revenus annuels	Nombre de contrats
Support technique sur place	1,2 milliard de dollars	47
Assistance technique à distance	900 millions de dollars	32
Formation et simulation	700 millions de dollars	25

Huntington Ingalls Industries, Inc. (HII) - Modèle commercial: Ressources clés

Installations avancées de construction navale

Huntington Ingalls exploite deux installations principales de construction navale:

Emplacement	Détails de l'installation	Capacité annuelle
Newport News, Virginie	Construction du porte-avions nucléaires et de la construction sous-marin	1-2 gros navires navals par an
Pascagoula, Mississippi	Navires de guerre amphibies et expéditionnaires	2-3 navires navals de taille moyenne par an

Travail en ingénierie spécialisée

Composition de la main-d'œuvre en 2023:

• Total des employés: 44 500
• Ingénieurs: 8 900 (20% de la main-d'œuvre)
• Spécialistes techniques avancés: 6 700

Technologies de conception navale propriétaire

Catégorie de technologie	Nombre de brevets	Investissement annuel de R&D
Conception de navires navals	137 brevets actifs	487 millions de dollars en 2023
Systèmes de propulsion nucléaire	52 technologies exclusives	213 millions de dollars R&D spécialisés

Expérience de l'industrie de la défense

Société établie: 1886

Années consécutives de production de navires navals: 135 ans

Portefeuille de propriété intellectuelle

• Brevets actifs totaux: 246
• Demandes de brevet en instance: 89
• Revenus de licence technologique: 42,3 millions de dollars en 2023

Huntington Ingalls Industries, Inc. (HII) - Modèle d'entreprise: propositions de valeur

Navires navals de haute qualité et technologiquement avancés

En 2023, Huntington Ingalls Industries a livré 9,4 milliards de dollars de navires navals à la marine américaine. La société a construit des plates-formes navales clés, notamment:

Type de navire	Production annuelle	Valeur du contrat
Porte-avions	2 en conception / construction	11,4 milliards de dollars
Navires d'assaut amphibies	1-2 par an	3,2 milliards de dollars
Destructeurs	Maintenance continue	2,7 milliards de dollars

Support d'infrastructure de sécurité nationale critique

HII fournit des solutions de sécurité nationale avec 7,2 milliards de dollars de contrats d'infrastructure de défense en 2023.

• Entretien sous-marin à propulsion nucléaire: 4,5 milliards de dollars
• Conception et construction sous-marines: 2,7 milliards de dollars
• Plates-formes de dissuasion stratégiques: 1,8 milliard de dollars

Solutions de défense maritime à long terme et fiables

Hii maintient des contrats de défense à long terme d'une valeur de 35,6 milliards de dollars jusqu'en 2028.

Type de contrat	Durée	Valeur totale du contrat
Accumulation de marine de la Marine	5-10 ans	24,3 milliards de dollars
Accords de maintenance	3-7 ans	11,3 milliards de dollars

Ingénierie et capacités techniques personnalisées

Hii a investi 412 millions de dollars dans la recherche et le développement en 2023, en se concentrant sur:

• Systèmes de propulsion naval avancés
• Technologies maritimes autonomes
• Plates-formes de défense de cybersécurité

Support complet du cycle de vie pour les plates-formes navales

HII fournit un support de plate-forme naval de bout en bout avec 6,8 milliards de dollars de contrats de service pour 2023.

Service d'assistance	Revenus annuels	Clientèle
Entretien des navires	3,6 milliards de dollars	Marine américaine
Formation technique	1,2 milliard de dollars	Personnel militaire
Modernisation de la flotte	2,0 milliards de dollars	Ministère de la Défense

Huntington Ingalls Industries, Inc. (HII) - Modèle d'entreprise: relations avec les clients

Partenariats contractuels du gouvernement à long terme

En 2024, Huntington Ingalls Industries maintient 25,4 milliards de dollars dans un arriéré contractuel total avec la marine américaine et la Garde côtière américaine. La société a des contrats actifs, notamment:

Type de contrat	Valeur	Durée
Construction du porte-avions	14,2 milliards de dollars	2024-2030
Construction sous-marine	8,7 milliards de dollars	2024-2029
Programme de navires amphibies	2,5 milliards de dollars	2024-2027

Gestion du secteur militaire et de la défense dédié

HII sert des clients principaux par le biais d'équipes de compte spécialisées:

• Navy américaine: 68% des revenus totaux
• Garde côtière américaine: 12% des revenus totaux
• Département de la sécurité intérieure: 8% des revenus totaux

Services de support technique continu et de maintenance

Métriques de support technique pour 2024:

Catégorie de service	Valeur annuelle	Temps de réponse
Entretien des navires	3,6 milliards de dollars	Réaction d'urgence 24h / 24
Durcissement technique	1,9 milliard de dollars	Support standard de 48 heures

Accords contractuels basés sur la performance

Mesures de performance clés en 2024:

• Évaluation des performances du contrat: 94,5%
• Taux de livraison à temps: 92,3%
• Conformité de la qualité: 96,1%

Innovation collaborative et développement technologique

Investissements de recherche et développement:

Zone d'innovation	Investissement annuel	Focus clé
Technologie navale	487 millions de dollars	Techniques avancées de construction navale
Systèmes de défense	312 millions de dollars	Technologies maritimes autonomes

Huntington Ingalls Industries, Inc. (HII) - Modèle d'entreprise: canaux

Processus d'achat du gouvernement direct

Huntington Ingalls Industries (HII) opère principalement par le biais de canaux d'approvisionnement directs avec le ministère américain de la Défense. En 2023, HII a obtenu 10,2 milliards de dollars de nouveaux contrats de contrat dans ses segments d'entreprise.

Canal d'approvisionnement	Valeur du contrat annuel
Contrats de construction navale de la Marine	7,4 milliards de dollars
Contrats de systèmes de défense	2,1 milliards de dollars
Contrats de services techniques	700 millions de dollars

Salons et conférences commerciales de l'industrie de la défense

HII participe à des événements clés de l'industrie de la défense pour présenter les capacités et réseauter avec des clients gouvernementaux potentiels.

• Exposition de la marine de la Séare-espace
• Réunion annuelle AUSA et exposition
• SOFIC (Conférence de l'industrie des forces d'opérations spéciales)

Réseaux de relations militaires et gouvernementaux stratégiques

Hii entretient des relations stratégiques avec les principaux décideurs militaires et gouvernementaux sur plusieurs segments.

Réseau de relations	Points de fiançailles clés
Leadership de la marine américaine	Contrats directs de la construction navale et de l'entretien
Offices d'approvisionnement du ministère de la Défense	Propositions de services techniques et de systèmes de défense

Plateformes de communication numérique

Les canaux de fiançailles numériques comprennent:

• Site Web d'entreprise avec un portail gouvernemental sécurisé
• Page d'entreprise LinkedIn à plus de 50 000 abonnés
• Réseaux de communication sécurisés par le gouvernement

Mécanismes techniques de proposition et d'appel d'offres

Hii utilise des processus de soumission de proposition sophistiqués par le biais de systèmes d'approvisionnement gouvernementaux.

Plate-forme d'appel d'offres	Soumissions de propositions annuelles
Sam.gov (Système pour la gestion des prix)	127 propositions formelles
Systèmes d'approvisionnement de la défense	89 offres contractuelles classifiées

Huntington Ingalls Industries, Inc. (HII) - Modèle d'entreprise: segments de clientèle

Marine américaine et ministère de la Défense

Le segment de la clientèle primaire avec 7,8 milliards de dollars de contrats de défense pour l'exercice 2023. Comprend 68% du total des revenus de l'entreprise.

Type de contrat	Valeur annuelle	Pourcentage de revenus
Construction du porte-avions	3,2 milliards de dollars	41%
Construction sous-marine	2,6 milliards de dollars	33%
Maintenance navale	2 milliards de dollars	26%

Agences de défense du gouvernement fédéral

Segment de clientèle secondaire générant 1,5 milliard de dollars de contrats annuels.

• Contrats de support de la Garde côtière américaine: 450 millions de dollars
• Infrastructure maritime de sécurité intérieure: 350 millions de dollars
• Contrats de l'agence de logistique de défense: 700 millions de dollars

Organisations militaires alliées internationales

Les ventes militaires étrangères et les contrats de défense internationale totalisant 625 millions de dollars en 2023.

Pays / région	Valeur du contrat
Pays de l'OTAN	375 millions de dollars
Région Asie-Pacifique	250 millions de dollars

Services à l'infrastructure de défense maritime

Contrats d'infrastructure et de maintenance spécialisés d'une valeur de 500 millions de dollars par an.

• Modernisation navale du chantier naval: 250 millions de dollars
• Mises à niveau des infrastructures maritimes: 150 millions de dollars
• Services de support technique: 100 millions de dollars

Marchés spécialisés de l'ingénierie navale

Le segment de l'ingénierie et des services techniques de niche générant 300 millions de dollars de revenus.

Service d'ingénierie	Revenus annuels
Conception avancée de systèmes navals	150 millions de dollars
Conseil de technologie maritime	100 millions de dollars
Soutien de la recherche navale	50 millions de dollars

Huntington Ingalls Industries, Inc. (HII) - Modèle d'entreprise: Structure des coûts

Investissement élevé en capital dans les installations de construction navale

Huntington Ingalls Industries a déclaré des dépenses en capital de 387 millions de dollars en 2022. La société exploite trois principales installations de construction navale:

• NEWPORT News Shipbuilding en Virginie
• Ingalls Shipbuilding au Mississippi
• Installation de solutions techniques dans plusieurs emplacements

Facilité	Coût de maintenance annuel	Investissement de l'équipement
NEWPORT News Shipbuilding	156 millions de dollars	214 millions de dollars
Ingalls Shipbuilding	98 millions de dollars	132 millions de dollars

Dépenses de recherche et développement approfondies

Les dépenses de R&D pour HII ont totalisé 175 millions de dollars en 2022, en se concentrant sur les technologies de défense navale et l'ingénierie maritime.

Compensation des effectifs qualifiés

La rémunération totale des employés pour 2022 était de 3,8 milliards de dollars, avec un salaire annuel moyen de 98 500 $ par employé.

Catégorie des employés	Salaire moyen	Total de main-d'œuvre
Ingénierie	$125,000	8,500
Personnel technique	$85,000	12,300

Gestion complexe de la chaîne d'approvisionnement

Coûts opérationnels de la chaîne d'approvisionnement: 512 millions de dollars en 2022

• Dépenses de gestion des fournisseurs: 76 millions de dollars
• Logistique et transport: 124 millions de dollars
• Gestion des stocks: 98 millions de dollars

Coûts de conformité réglementaire et d'infrastructure de sécurité

Les dépenses de conformité et de sécurité ont atteint 214 millions de dollars en 2022, notamment:

• Infrastructure de cybersécurité: 87 millions de dollars
• Surveillance de la conformité réglementaire: 62 millions de dollars
• Conformité du contrat du gouvernement: 65 millions de dollars

Huntington Ingalls Industries, Inc. (HII) - Modèle d'entreprise: Strots de revenus

Contrats de construction de navires navals à long terme

Au cours de l'exercice 2022, Huntington Ingalls Industries a déclaré 9,4 milliards de dollars de revenus totaux provenant des contrats de construction de navires navals. La société détient des contrats clés avec la marine américaine pour:

• VOIRS AIRCRAFT: Classe USS Gerald R. Ford (CVN-78)
• Navires d'assaut amphibies
• Construction sous-marine

Type de contrat	Revenus annuels (2022)	Durée du contrat
Construction du porte-avions	4,2 milliards de dollars	5-7 ans
Construction de navires amphibies	2,6 milliards de dollars	3-5 ans
Construction sous-marine	2,6 milliards de dollars	4-6 ans

Services de maintenance et de modernisation des navires

HII a généré 3,1 milliards de dollars de revenus des services de maintenance et de modernisation des navires en 2022. Les principales zones de service comprennent:

• Entretien de la flotte
• Mises à niveau technique
• Services de réparation et de refonte

Catégorie de service	Revenus annuels (2022)
Entretien des navires navals	1,8 milliard de dollars
Modernisation commerciale des navires	800 millions de dollars
Services de réparation technique	500 millions de dollars

Constructions techniques et réparation

Les accords de soutien technique et de réparation ont contribué 1,5 milliard de dollars aux revenus de HII en 2022, couvrant:

• Contrats de maintenance en cours
• Services de réparation d'urgence
• Conseil technique

Contrats de production du système de défense

La production du système de défense a généré 2,2 milliards de dollars de revenus pour HII en 2022, notamment:

• Systèmes de défense antimissile
• Systèmes de gestion de combat
• Technologies de guerre électronique

Projets de développement des infrastructures gouvernementales

Les projets d'infrastructure gouvernementale ont représenté 700 millions de dollars de revenus pour HII en 2022, en se concentrant sur:

• Construction de base militaire
• Mises à niveau des installations navales
• Développement stratégique des infrastructures

Huntington Ingalls Industries, Inc. (HII) - Canvas Business Model: Value Propositions

You're looking at the core reasons why defense customers rely on Huntington Ingalls Industries, Inc. (HII) for their most vital assets. It's not just about building ships; it's about providing unique, irreplaceable capabilities that underpin national security.

Sole provider of nuclear-powered aircraft carriers and one of two for submarines

This is the ultimate value proposition: exclusivity in the most complex naval platforms. Huntington Ingalls Industries, Inc. (HII) is the nation's sole designer and builder of nuclear-powered aircraft carriers, currently focused on the Gerald R. Ford-class. This capability is anchored by massive, long-term commitments, like the $15.2 billion multi-ship contract modification to build the Enterprise (CVN 80) and CVN 81, which provides workforce stability out to 2032. Furthermore, Huntington Ingalls Industries, Inc. (HII) is one of only two shipyards capable of constructing nuclear-powered submarines, including the Virginia-class and the next-generation Columbia-class, which drove Newport News Shipbuilding revenue up 4.4% year-over-year in Q2 2025, reaching $1.6 billion.

The sheer scale of this work translates directly into revenue visibility. As of September 30, 2025, the total contract backlog stood at $55.7 billion, with $33 billion of that already funded. The shipbuilding segment alone is guided to deliver between $9.0 billion and $9.1 billion in revenue for fiscal year 2025.

Mission-critical national security solutions for the U.S. defense apparatus

Huntington Ingalls Industries, Inc. (HII) delivers solutions that are non-discretionary for the U.S. defense apparatus. The value is demonstrated by the company's overall financial commitment to the defense cycle. For the third quarter of 2025, the company secured new contract awards worth $2.0 billion. The total projected revenue for FY 2025 across both shipbuilding and Mission Technologies is set to exceed $12 billion. This is mission assurance delivered through industrial capacity.

The Mission Technologies division supports this broader mandate, with Q2 2025 revenue hitting $791 million. This segment is focused on areas like C5ISR (Command, Control, Computers, Communications, Intelligence, Surveillance, and Reconnaissance), cyber, and electronic warfare, with FY 2025 revenue guidance between $3.0 billion and $3.1 billion.

Full life-cycle support from design through overhaul and modernization

The value extends far beyond the initial build. Huntington Ingalls Industries, Inc. (HII) supports these capital-intensive assets for their entire operational life, which can span five decades. This includes the critical Refueling & Complex Overhaul (RCOH) for Nimitz-class carriers. For example, a contract to refuel and overhaul the USS John C. Stennis (CVN 74) was valued up to $2.99 billion. Recently, the company secured a contract valued up to $471.9 million to provide engineering support for both Nimitz-class and Gerald R. Ford-class carriers, with work extending through November 2030.

Here's a look at the life-cycle services Huntington Ingalls Industries, Inc. (HII) provides:

• Design and detail engineering for new construction.
• Nuclear propulsion plant refueling and modernization.
• Ship change document development and configuration management.
• Inactivation services at the end of service life.

Advanced technological integration, including unmanned systems (e.g., ROMULUS)

To keep pace with evolving threats, Huntington Ingalls Industries, Inc. (HII) integrates advanced, often autonomous, technology into its offerings. The company recently unveiled the ROMULUS family of modular, AI-enabled unmanned surface vessels (USVs). The flagship, ROMULUS 190, is designed for speeds over 25 knots and a range of at least 2,500 nautical miles.

This focus on autonomy is supported by the proven Odyssey Autonomous Control System (ACS) software suite, which has demonstrated performance on over 35 USV platforms with more than 6,000 operational hours. This complements the existing REMUS UUV line, where over 700 units have been delivered, with more than 90% remaining operational after two decades. The Pentagon's FY2025 budget reflects this priority, allocating over $12 billion for autonomy programs.

High-quality, long-term, capital-intensive defense assets with decades of service

The value proposition is intrinsically linked to the assets themselves: they are high-quality, capital-intensive, and built to last for decades. The company is targeting approximately a 15% throughput improvement for the full year 2025 to better execute on these long-duration contracts. This operational focus is paired with a $250 million annualized cost reduction effort expected to be achieved by year-end 2025.

You can see the financial commitment required to maintain this capability in the segment guidance for FY 2025:

Segment	FY 2025 Revenue Guidance (Approximate)	FY 2025 Operating Margin Guidance
Shipbuilding	$9.0 billion to $9.1 billion	5.5% to 6.5%
Mission Technologies	$3.0 billion to $3.1 billion	Approximately 4.5% (Operating Margin)

The company expects to generate between $550 million and $650 million in Free Cash Flow for FY 2025, showing the ability to convert these long-term assets into near-term liquidity.

Huntington Ingalls Industries, Inc. (HII) - Canvas Business Model: Customer Relationships

You're dealing with the U.S. government, which means the relationship isn't about quick sales; it's about decades of dependency and national security. Huntington Ingalls Industries, Inc. (HII) lives and breathes this dynamic. The core of their customer relationship is built on being the sole provider for certain critical assets, like nuclear-powered aircraft carriers and ballistic missile submarines.

The sheer scale of the commitment is best seen in the order book. As of September 30, 2025, HII's total contract backlog stood at a robust $55.7 billion, secured primarily through these government agreements. This isn't just revenue; it's guaranteed future work, which is the ultimate sign of a strong, long-term customer bond in this sector. To be fair, this backlog reflects the high-stakes nature-if HII falters, the Navy's long-term readiness is immediately impacted.

Deep, long-term, and high-stakes contractual relationships with the U.S. government

The relationship is defined by multi-decade procurement cycles. Consider the pending multi-year agreement for 15 nuclear submarines, covering 10 Block VI Virginia-class attack submarines and 5 Columbia-class ballistic missile submarines, which HII is working hard to finalize by the end of 2025. This single negotiation sets the workload for years to come. The government's need for 20 Virginia-class submarines equipped with the Virginia Payload Module (VPM) to replace retiring Ohio-class boats underscores this high-stakes dependency.

Here's a quick look at the financial weight of just a portion of these submarine contracts, showing the magnitude of the relationship:

Program Element	Contract Value / Funding Amount	Fiscal Year Context
Final two Block V Virginia-class Subs (HII Portion)	$1,293,694,000 (approx. $1.29 billion)	Awarded April 2025
First Block VI Submarine (Potomac, SSN-814) Funding	$3.6 billion	FY 2025 Appropriation
Advanced Procurement for FY 2026/2027 Subs	$3.7 billion	FY 2025 Appropriation
Estimated Cost for Columbia Build II (5 Boats)	$10.54 billion	Navy FY 2026 Budget Proposal
Total Estimated Cost for 12 Columbia-class Boats	Approximately $128 billion	Navy FY 2026 Budget Proposal

Collaborative, non-transactional engagement to expand the maritime industrial base

HII's engagement goes beyond just building ships; it involves actively strengthening the entire ecosystem. The CEO noted support for the administration's commitment to expand the nation's shipbuilding capabilities and the maritime industrial base. This collaboration is tangible through concrete actions aimed at increasing production capacity and workforce stability. For instance, the distributed shipbuilding strategy has been expanded to include 23 partners. Furthermore, HII achieved a year-to-date hiring of more than 4,600 shipbuilders as of Q3 2025, a direct response to the customer's need for increased throughput. This signals a partnership focused on long-term industrial health, not just quarterly delivery schedules.

Dedicated program management teams for multi-year, multi-billion-dollar contracts

Managing contracts worth billions over many years requires specialized focus. The relationship necessitates dedicated program management teams embedded within the contracts. The $18.5 billion contract modification for the final two Block V Virginia-class boats, awarded in April 2025, is a prime example of this structure, as it included specific funds for workforce development to raise wages across both yards. This level of detail in a contract shows the depth of the management involvement required to execute these complex, multi-year endeavors.

HII's operational initiatives are directly tied to customer success metrics:

• Targeting approximately 15% throughput improvement for the full year 2025.
• Securing new contract awards worth $11.9 billion in Q2 2025.
• Increasing FY25 free cash flow guidance to between $550 million and $650 million.

Direct negotiation on contract types (e.g., hybrid approach for Virginia/Columbia classes)

The nature of these high-value, long-lead-time programs forces direct negotiation on risk allocation. The pending 15-submarine deal faced delays due to rising labor and material costs, leading to a focus on ensuring the Navy and industry appropriately share risk. This isn't a standard fixed-price sale; it's a hybrid approach where cost escalators and workforce investment clauses become central to the agreement. The April 2025 award for the Block V submarines explicitly included money to raise wages for shipbuilders, demonstrating a shared financial responsibility for maintaining the necessary skilled labor pool. This negotiation style is defintely key to keeping these critical programs moving forward.

Huntington Ingalls Industries, Inc. (HII) - Canvas Business Model: Channels

You're looking at how Huntington Ingalls Industries, Inc. (HII) gets its value propositions-whether it's a nuclear submarine or a cyber solution-into the hands of its customers. It's almost entirely government-driven, so the channels are less about retail shelves and more about federal procurement processes.

Direct contract negotiation and award process with the U.S. Department of Defense (DoD)

The primary channel for the shipbuilding segments, Newport News Shipbuilding and Ingalls Shipbuilding, is the direct, multi-year contract award process with the U.S. Navy. This is where the massive shipbuilding programs are secured. For instance, the total contract backlog for Huntington Ingalls Industries, Inc. stood at a massive $55.7 billion as of September 30, 2025. This backlog reflects the direct negotiation success for key platforms like Virginia-class submarines and aircraft carriers. The company is focused on improving schedule adherence for all ships built, aiming for approximately 15% throughput improvement for the full year 2025.

The direct negotiation channel is also being expanded through a distributed model. Huntington Ingalls Industries, Inc. has doubled its outsourced hours in 2025 and is on track to quadruple them within two years to meet U.S. Navy demand. This network of distributed manufacturing currently consists of 23 companies contributing to outsourced modular assembly and is growing.

Direct sales channel for Mission Technologies to government and defense customers (e.g., U.S. Air Force)

The Mission Technologies division uses a direct sales channel, often through task orders under larger IDIQ (Indefinite Delivery/Indefinite Quantity) vehicles like OASIS+. This division sells services and technology solutions directly to various DoD components and other federal agencies. Recent contract awards illustrate this direct channel:

• A $3 billion LOGIX task order for DoD logistics and intelligence support.
• A $147 million, five-year task order for U.S. Navy combat training services.
• A $133 million, 10-year task order with the U.S. Air National Guard for training support.
• A $458 million contract for DOD IT Architecture Modernization.

The Mission Technologies segment is expected to generate revenue between $3.0 billion and $3.1 billion for fiscal year 2025, with an anticipated operating margin of approximately 4.5%.

Shipyard facilities (Newport News and Ingalls) serve as primary delivery and service points

The physical delivery and final service points for the major shipbuilding products are the company's established facilities. Newport News Shipbuilding in Virginia handles nuclear-powered aircraft carriers and submarines. Ingalls Shipbuilding in Pascagoula, Mississippi, focuses on amphibious assault ships and Arleigh Burke-class destroyers. These yards are the culmination points for the complex manufacturing processes, whether the components were built in-house or via the distributed network. For example, the Newport News division acquired a facility in Goose Creek, South Carolina, now Charleston Operations, dedicated to producing completed submarine modules and structural aircraft carrier units.

Strategic partnerships for distributed manufacturing and global service delivery

Huntington Ingalls Industries, Inc. uses strategic alliances to enhance its channel capabilities, particularly for manufacturing throughput and technology integration. The company has forged international partnerships with Hyundai Heavy Industries and Babcock International Group to boost production efficiency. Furthermore, the Mission Technologies division leverages partnerships for service delivery, such as the strategic agreement with C3 AI to apply artificial intelligence to accelerate shipbuilding throughput. The company employs more than 44,000 workers across its operations.

Here's a quick look at the expected financial scale of the revenue channels for fiscal year 2025:

Channel Segment	FY2025 Revenue Guidance (USD)	Recent Quarterly Revenue (Q3 2025) (USD)	Segment Operating Margin Guidance (FY2025)
Shipbuilding (Combined)	$9.0 billion to $9.1 billion	Shipbuilding revenue growth was 18% year-over-year in Q3 2025	5.5% to 6.5%
Mission Technologies	$3.0 billion to $3.1 billion	$787 million	Approximately 4.5%

The total backlog as of March 31, 2025, was $48.0 billion, growing to $55.7 billion by September 30, 2025, showing strong forward visibility across these channels.

Finance: draft 13-week cash view by Friday.

Huntington Ingalls Industries, Inc. (HII) - Canvas Business Model: Customer Segments

You're looking at the core of Huntington Ingalls Industries, Inc.'s (HII) business, which is overwhelmingly anchored to the U.S. federal government, specifically the Department of Defense. The customer segments define the revenue streams, and as of late 2025, the numbers show a clear hierarchy.

The overall financial commitment from customers is substantial, reflected in the cumulative order backlog. As of September 30, 2025, Huntington Ingalls Industries, Inc. reported a total backlog of $55.7 billion. Of that total, the funded portion stood at $33 billion. New contract awards in the third quarter of 2025 alone totaled $2.0 billion.

The U.S. Navy (primary customer for shipbuilding)

The U.S. Navy remains the bedrock customer, driving the majority of revenue through the Newport News Shipbuilding and Ingalls Shipbuilding divisions. This segment is focused on complex, long-term platforms like nuclear-powered aircraft carriers and submarines. For Fiscal Year 2025, Huntington Ingalls Industries, Inc. reaffirmed its guidance for shipbuilding revenue to be between $9.0 billion and $9.1 billion.

Specific, recent contract activity highlights this deep reliance:

• HII was awarded a contract up to $471.9 million in December 2025 for engineering support on Nimitz-class and Gerald R. Ford-class aircraft carriers, with an initial award value of $91.9 million.
• In April 2025, Huntington Ingalls Inc., Newport News Shipbuilding, was awarded $1,293,694,000 as part of a larger contract for two Virginia-class attack submarines (Block V).
• Contract awards in the second quarter of 2025 totaled $11.9 billion, which included work for DDG 145 and 146, LPD33, and two Block V submarines.
• The company noted that it is the nation's sole designer and builder of the Gerald R. Ford-class aircraft carriers.

Other U.S. government agencies (e.g., Coast Guard, U.S. Air Force)

While the Navy dominates, other government entities represent important, though smaller, customer bases, often serviced through the shipbuilding or Mission Technologies segments. The Mission Technologies division is actively engaged with the U.S. Army, for instance, developing a high-energy laser counter-drone system. The shipbuilding divisions also support the U.S. Coast Guard, though specific revenue figures tied solely to the Coast Guard are typically bundled within the larger shipbuilding segment reporting.

Government and commercial entities requiring C5ISR, cyber, and technical services

This category is served by the Mission Technologies segment, which focuses on delivering advanced technology solutions. For the full Fiscal Year 2025, Huntington Ingalls Industries, Inc. projected Mission Technologies revenue between $3.0 billion and $3.1 billion. This segment showed strong momentum, with Q2 2025 revenue reported at $791 million and Q1 2025 revenue at $735 million. The third quarter of 2025 saw 11% sales growth in this segment year-over-year.

Customer demand within this segment is characterized by:

• Growth in cyber, electronic warfare, and space capabilities.
• Unmanned systems, including the unveiling of the AI-enabled ROMULUS unmanned surface vessel line.
• Reaching the 750th production unit of the REMUS UUV.
• Lower volumes reported in C5ISR offerings during the first quarter of 2025.

International defense customers for Mission Technologies and potential shipbuilding exports

International engagement is primarily seen through Mission Technologies partnerships and collaborations, rather than major export shipbuilding contracts in the reported data. The company announced new partnerships with international entities like Babcock International and Thales, alongside domestic partners like Shield AI, to enhance its technological offerings. The company is also exploring opportunities in ship production through an MOU with HD Hyundai Heavy Industries.

Here's a quick look at the expected financial scale of the two main operating segments for FY2025:

Segment	FY2025 Revenue Guidance (Approximate)	Q3 2025 Segment Operating Margin
Shipbuilding (NNS & Ingalls)	$9.0 billion to $9.1 billion	Between 5.5% and 6.5%
Mission Technologies	$3.0 billion to $3.1 billion	Approximately 4.5%

The customer base dictates the long-term planning; for example, the company warned that the next 1.5 years will be challenging as they transition out of ships contracted before the COVID-19 pandemic to the newer contracts. Finance: draft 13-week cash view by Friday.

Huntington Ingalls Industries, Inc. (HII) - Canvas Business Model: Cost Structure

You're managing a business where the cost of goods sold (COGS) is intrinsically tied to multi-year, fixed-price government contracts, which means managing labor and material inflation is a constant battle. For Huntington Ingalls Industries, Inc. (HII), the cost structure is dominated by the physical reality of building nuclear-powered ships and complex defense systems.

High fixed costs related to massive shipyard infrastructure and capital expenditures

The cost structure includes significant, ongoing capital investment to maintain and modernize the massive shipyard footprint necessary for aircraft carriers and submarines. This is a long-term, high-barrier-to-entry cost. You see this reflected in the company's capital spending guidance for 2025.

• FY2025 Capital Expenditure Additions guidance is between $450 million and $500 million.
• Capital Expenditures were guided to be approximately 4% of Sales for FY2025.
• Capital expenditure additions in Q1 2025 totaled $67 million.
• Capital expenditure additions in Q2 2025 totaled $96 million.
• Specific infrastructure projects, like a new parking deck at the shipyard, have been awarded at costs such as $120 million.

Significant labor costs for the specialized shipbuilding workforce (wage negotiations are key)

Labor is arguably the largest variable component within the Cost of Sales, given the highly skilled nature of the workforce. The focus in 2025 has been on stabilization through investment.

• The company has onboarded more than 4,600 shipbuilders so far in 2025.
• Management has affirmed progress on a $250 million annualized cost reduction effort expected to be achieved by year-end 2025.
• Investments in shipbuilder wages were a key focus area in Q2 2025.
• Wage negotiations are a key focus to reduce attrition without triggering market inflation.

High material and supply chain costs for steel, components, and long-lead items

The high Gross Profit Margin of approximately 12.34% in Q3 2025 reflects the inherent challenge of absorbing material and labor costs within fixed-price contracts, especially those awarded pre-COVID. The cost of steel and other long-lead items remains a critical pressure point, although supply chain stability is improving.

Research, development, and engineering (R&D/E) for next-generation platforms

While the company is focused on next-generation platforms like unmanned systems, reported R&D expenses for the twelve months ending September 30, 2025, were stated as $0M. However, favorable tax changes related to the reversal of prior Section 174 R&D capitalization treatment are estimated to benefit the company by more than $150 million in 2025.

Selling, General, and Administrative (SG&A) overhead to manage complex contracts

Managing the complex web of government contracts, compliance, and administrative oversight requires substantial overhead. While a specific 2025 SG&A figure isn't immediately available, the consolidated Operating Margin for Q3 2025 was 5.0%, with operating income at $179 million on $3.2 billion in revenue.

Here's a quick look at the key financial metrics that define the cost environment:

Cost/Financial Metric	Value/Range (2025 Data)	Period/Context
Gross Profit Margin	12.34%	Q3 2025
Consolidated Operating Margin	5.0%	Q3 2025
FY2025 Shipbuilding Operating Margin Guidance	5.5% to 6.5%	Full Year
FY2025 Capital Expenditures Guidance	$450 million to $500 million	Full Year
FY2025 Free Cash Flow Guidance	$500 million to $600 million	Full Year
Annualized Cost Reduction Effort Target	$250 million	Expected by Year-End

Finance: draft 13-week cash view by Friday.

Huntington Ingalls Industries, Inc. (HII) - Canvas Business Model: Revenue Streams

You're looking at the core of how Huntington Ingalls Industries, Inc. (HII) brings in money, which is almost entirely tied to long-term, complex government shipbuilding and defense technology work. This revenue base is incredibly stable, underpinned by a massive backlog that stood at $56.9 billion as of the second quarter of 2025. That backlog gives you long-term revenue visibility, which is key in this sector.

The financial guidance for Fiscal Year 2025 clearly segments the two primary revenue drivers. Shipbuilding revenue is projected to land between $9.0B and $9.1B for FY25, carrying an expected operating margin in the range of 5.5% to 6.5%. The Mission Technologies segment is forecasted to contribute between $3.0B and $3.1B in revenue for FY25, with an expected segment operating margin between 4.0% and 4.5%, and an EBITDA margin projected between 8.0% and 8.5%. To be fair, Q1 2025 saw total revenue dip 2.5% year-over-year to $2.7 billion, but Q3 2025 bounced back strongly with revenue reaching $3.2 billion, a 16.1% increase year-over-year.

The foundation of the shipbuilding revenue stream is long-term, fixed-price, and cost-plus government contracts for new construction. You see this in the massive programs HII supports, like the Columbia-class submarine and the Ford-class aircraft carriers, which are decades-long commitments. For instance, Ingalls Shipbuilding secured a $9.6 billion multi-ship procurement contract in 2024 for LPD 33, 34, and 35. Contract structures authorize various payment methods; for example, the ITES-3S contract vehicle allows for Firm Fixed Price (FFP), Time and Materials (T&M), and Cost Reimbursement (CR) Task Orders. Furthermore, HII secured a Navy contract valued up to $471.9 million for aircraft carrier support, structured as a cost-plus-fixed-fee contract.

Service and repair revenue flows from vessel maintenance and modernization programs, often bundled within the larger shipbuilding segment or as part of Mission Technologies offerings. While specific service-only revenue figures aren't always broken out separately from the main segments, the work is critical. For example, Newport News Shipbuilding's Q1 2025 revenue was impacted by reduced aircraft carrier and service support volumes. Mission Technologies itself provides fleet maintenance and modernization services.

The Mission Technologies segment is where you find the revenue from technical solutions and services, specifically in cyber, C5ISR, and unmanned systems sales. In Q1 2025, this segment generated $735 million in revenue, and by Q2 2025, it grew to $791 million. This growth is supported by specific product lines; HII delivered the first two small uncrewed undersea vehicles (SUUVs) for the Lionfish system program in Q1 2025, and Mission Technologies delivered REMUS 300 SUUVs to Hitachi in Q2 2025. The C5ISR (Command, Control, Computers, Communications, Intelligence, Surveillance, and Reconnaissance) offerings are a key part of this, though Q1 2025 saw lower C5ISR volume.

Here's a quick look at the segment revenue targets for the full year 2025:

Revenue Stream Segment	FY25 Projected Revenue Range	Projected Margin
Shipbuilding	$9.0B to $9.1B	5.5% to 6.5% Operating Margin
Mission Technologies	$3.0B to $3.1B	4.0% to 4.5% Operating Margin

The flow of new contract awards directly feeds these revenue streams, showing the pipeline health. You can see the quarterly activity:

• Q1 2025 New Contract Awards: $2.1 billion
• Q2 2025 New Contract Awards: $11.9 billion
• Q3 2025 New Contract Awards: $2 billion

The nature of the work dictates the contract type, which impacts revenue recognition and margin realization. You'll find revenue derived from:

• Sole designer, builder, and refueler of nuclear-powered aircraft carriers
• Construction of Virginia-class and Columbia-class submarines
• Amphibious assault ships and surface combatants
• Management and operation (M&O) contracts with cost-plus-award-fee provisions
• Services under GSA OASIS+ contracts on a time and materials or fixed price basis

Finance: draft 13-week cash view by Friday.