Huntington Ingalls Industries (HII): Resurgence in US Shipbuilding

By Patricia Miller

Mar 06, 2025

2 min read

U.S. shipbuilding is getting a boost, with Huntington Ingalls (HII) set to benefit from government support, tax incentives, and rising defense contracts.

#What You Need to Know

Recent announcements from the U.S. government signal a significant potential rebound for the shipbuilding industry, notably benefiting Huntington Ingalls Industries Inc (NYSE: HII). President Trump highlighted plans to resurrect domestic shipbuilding, including the establishment of a White House Office dedicated to this effort. These developments have resulted in a notable surge in the stock of Huntington Ingalls Industries, following a period of decline, with expectations for expedited projects and potential tax incentives to attract investment.

Huntington Ingalls Industries stands as the largest military shipbuilder in the United States, delivering advanced naval vessels for the U.S. Navy and Coast Guard. The company’s substantial contracts, often valued in the billions, emphasize its critical role in national defense and maritime capabilities. The urgency of revitalizing the shipbuilding sector could further enhance investment opportunities in this historically significant industry.

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#Why This Is Important for Retail Investors

  • Market Opportunity: The revival of U.S. shipbuilding can create new investment avenues in a historically strong sector.

  • Growth Potential: With government backing and tax incentives, companies like Huntington Ingalls may see a boost in revenues and profits.

  • Defense Spending: Increased military contracts could solidify the financial stability and growth of Huntington Ingalls Industries, benefiting investors.

  • Economic Impact: The resurgence of domestic manufacturing in shipbuilding aligns with trends of economic nationalism, possibly leading to job growth and community revitalization.

  • Long-term Vision: Investing in sectors with government support and strategic importance can contribute to a diversified investment portfolio.

#Relevant ETFs

  • SPDR S&P Aerospace & Defense ETF (XAR)

  • iShares US Aerospace & Defense ETF (ITA)

  • Invesco S&P 500 Equal Weight Industrials ETF (RGI)

  • First Trust RBA American Industrial Renaissance ETF (OSMX)

  • VanEck Vectors Steel ETF (SLX)

  • SPDR S&P Transportation ETF (XTN)

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Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Patricia Miller does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.

Patricia Miller has not been paid to produce this piece by the company or companies mentioned above.

Digitonic Ltd, the owner of ValueTheMarkets.com, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of ValueTheMarkets.com, has not been paid for the production of this piece by the company or companies mentioned above.