HII's Underwater Drone Business Sees Modest Growth Amid Navy Expansion
HII's underwater drone segment, specifically the Lionfish system, received a contract extension worth nearly $350 million. Despite modest current revenues, the company anticipates significant growth as the Navy increases its unmanned fleet capabilities.
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HII's underwater drone business is experiencing growth but currently generates modest revenue, according to CEO Chris Kastner. The company secured a contract extension for its Lionfish unmanned undersea vehicle, originally valued at approximately $350 million.
HII's Mission Technologies division reported $760 million in second-quarter revenue, reflecting a decline compared to the previous year, attributed to lower global security operations. The Mission Technologies segment is projected to grow by 5% over the next five years, potentially reaching $3.2 billion in revenue by fiscal year 2026. The increasing utilization of sea drones in military operations presents opportunities for HII, which plans to invest in and expand this segment.
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