© Reuters.
MCLEAN, Va. – HII, known formally as Huntington Ingalls Industries (NYSE: NYSE:), has secured a $305 million contract from the Defense Intelligence Agency (DIA) to support the Joint Intelligence Operations Center-Korea (JIOC-K), the company announced Monday. Under the agreement, HII’s Mission Technologies division will provide intelligence analysis and operational support services to United States Forces Korea (USFK).
This contract aims to enable USFK to effectively assess enemy capabilities, identify potential threats, and forecast enemy actions. HII’s role will include organizing intelligence activities within the Korean Theater of Operations (KTO) to enhance the integration of theater and global intelligence resources to protect U.S. personnel and interests in the region.
Todd Gentry, president of HII’s C5ISR business group within Mission Technologies, expressed the company’s commitment to the mission and highlighted their history of advising on national security issues. “Our experts are committed to protecting U.S. regional interests,” he said.
The task order, which is a recompete of a previous contract awarded in 2019, spans a five-year term and continues the work HII has been performing for the DIA.
HII is a major defense contractor providing a range of services from military shipbuilding to unmanned systems, cyber intelligence, surveillance, reconnaissance (ISR), and artificial intelligence/machine learning (AI/ML) solutions. With over 135 years in the defense sector and a workforce of 44,000, HII plays a significant role in advancing U.S. national security interests.
The information in this article is based on a press release statement.
InvestingPro Insights
As Huntington Ingalls Industries (NYSE: HII) continues to solidify its position as a key player in the defense sector with the recent $305 million contract, the company’s financial health and stock performance offer additional insights. With a market capitalization of $11.57 billion and a forward P/E ratio of 17.13, HII demonstrates a balance of value and growth potential, particularly as it trades at a low P/E ratio relative to near-term earnings growth.
Investors might also take note of HII’s commitment to shareholder returns, as evidenced by its consistent dividend payments. An InvestingPro Tip highlights that HII has raised its dividend for 12 consecutive years, showcasing a reliable income stream for investors. Additionally, the company has maintained dividend payments for 13 consecutive years, reinforcing its financial stability and investor-friendly approach.
From a stock performance perspective, HII has experienced a large price uptick over the last six months, with a 6-month price total return of 40.49%. This bullish trend is further supported by the fact that shares are trading near their 52-week high, at 97.03% of this peak level. This could indicate a strong market confidence in the company’s future prospects.
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