The nation’s largest shipbuilder, HII, is anticipating steady growth in its emerging technologies business this year, driven by the Defense Department’s demand for counter-UAS and data solutions. HII CEO Christopher Kastner stated on Wednesday, “We’re in all the right areas that are achieving growth and budget and so we’re able to capture that,” and provided a growth guidance of approximately 5 percent.
In 2023, HII’s Mission Technologies division experienced a growth of nearly 9 percent, securing about $12 billion in contract awards once the projects are finalized, according to their fourth-quarter earnings report for 2024. However, the division noted a slight decline in fourth-quarter revenue—down by 4 percent or $32 million—compared to the previous year due to a reduction in C5ISR contracts. Nonetheless, the total revenue for 2024 reached $2.9 billion, marking an 8.8 percent increase over 2023, aided by an uptick in contracts for cyber, electronic warfare, and C5ISR.
Kastner expressed optimism regarding potential growth in the uncrewed vehicles sector. HII anticipates maintaining revenue around $3 billion for 2025. Recently, the Army awarded HII a prime contract to develop a high-energy laser system capable of targeting uncrewed aerial systems, which Kastner noted could have broader military applications.
Positioned as the prime contractor for this high-energy laser development, Kastner remarked, “We’re not often thought of as a laser company, but that’s part of the technology that we acquired when Alion came on board.” The Newport News-based shipbuilder has been rebranding and expanding its scope through its Mission Technologies division, focusing more on emerging technologies such as cyber, electronic warfare, uncrewed systems, nuclear technologies, and data analytics.
Mission Technologies has achieved significant milestones, delivering 700 underwater uncrewed vehicles, including production units for small UUVs earlier this year. Kastner mentioned that they have established a steady rhythm within their uncrewed organization, with high hopes for continued success. He also highlighted their advanced medium-sized UUV, which successfully executed the first underwater launch and recovery from a Virginia-class submarine.
Additionally, Kastner hinted at contributing to the Trump administration’s Golden Dome missile-defense project by leveraging data solutions. He noted the importance of data and mentioned some flexible platforms currently utilized for other clients, emphasizing prudent investments in Mission Technologies.
Regarding economic factors, the White House imposed widespread tariffs on imports, including steel and aluminum, but Kastner expressed limited concern about their effects on HII, stating, “We buy and build in America.” The company does not rely on foreign steel apart from purchases from Australia for training. However, Kastner did voice apprehensions about potential impacts from federal workforce reductions under the Trump administration, particularly regarding contract actions and the quality of technical expertise, especially for nuclear shipbuilding programs. He emphasized the challenging nature of finding skilled professionals in nuclear program management.
