HII · 10-Q · 2026Q3 · Full report

Defense Spending Outlook

HUNTINGTON INGALLS INDUSTRIES, INC. · 2026-10-29 · Importance 26 · Surprise 24

The President’s April 3, 2026, fiscal year 2027 budget request recommends $65.8 billion for shipbuilding procurement, comprising $60.2 billion in discretionary and $5.6 billion in mandatory funding. The request funds construction across several programs relevant to HII, including Columbia- and Virginia-class submarines, an Arleigh Burke-class destroyer, amphibious ships, and the first Frigate-class ship, and continues funding Ford-class carriers and carrier refueling. Congress had not finalized annual appropriations, and the U.S. Government was operating under a Continuing Resolution funding operations through December 11, 2026.

Key facts

• HII was awarded a lead yard services contract in 2026 to begin Frigate-class baseline design engineering, including funding for long-lead-material procurement and preconstruction efforts on the first ship. source
• The fiscal year 2027 budget request, submitted April 3, 2026, recommends $60.2 billion in discretionary shipbuilding construction funding and $5.6 billion in mandatory funding, totaling $65.8 billion for shipbuilding procurement. source
• The fiscal year 2027 discretionary budget request funds one Columbia-class submarine, two Virginia-class submarines, one Arleigh Burke-class destroyer, one San Antonio-class amphibious transport dock, one America-class amphibious assault ship, and the first Frigate-class ship. source
• The fiscal year 2027 budget request continues funding Gerald R. Ford-class aircraft carriers and carrier refueling programs, provides initial advance procurement funding for the lead Trump-class battleship, and reflects increased investment in unmanned surface and underwater vehicles. source
• The U.S. Government is operating under a Continuing Resolution funding government operations through December 11, 2026, while annual appropriations have not been finalized. source