Dear HII Team,
This morning we released 2023 fourth quarter and full year results that demonstrate the value of our collective effort last year. The bottom line is this: the demand for what HII delivers in people, platforms and technologies is growing. We are delivering, and our defense customers continue to need and expect top performance from us. We reported sales of $3.2 billion for the quarter and $11.5 billion for the full year. For complete financial results, please read our news release.
These 2023 highlights from our business segments reflect our ongoing focus on operational execution:
Ingalls Shipbuilding delivered the first Flight III guided missile destroyer USS Jack H. Lucas (DDG 125) to the U.S. Navy as well as national security cutter Calhoun (NSC 10) to the U.S. Coast Guard. Our team also was awarded the contracts for seven more Arleigh Burke-class destroyers. In our amphibious ship programs, we were awarded a $1.3 billion detail design and construction contract for LPD 32, and we launched Bougainville (LHA 8), the third big-deck amphibious warship in the America class. Our team is gearing up for sea trials and delivery of San Antonio-class amphibious transport dock Richard M. McCool Jr. (LPD 29) in the first half of 2024.
Mission Technologies delivered another outstanding quarter in Q4, performing ahead of plan across all business units, leading to strong revenue growth in 2023. In addition to the record revenue growth, Mission Technologies booked new and recompete contract awards with nearly $6 billion in total contract value. We ended the year with a robust potential business pipeline of $75 billion, of which over one third is qualified. Key growth drivers include support for mission-readiness in applied artificial intelligence; cyber and electronic warfare; advance modeling and simulation; live, virtual and constructive training’ and command, control, communications, computers, cyber, intelligence, surveillance and reconnaissance, known as C5ISR.
During the year, Newport News Shipbuilding re-delivered USS George Washington (CVN 73), after completing its refueling and complex overhaul, and the team continues to progress in the test program for the next-in-class carrier John F. Kennedy (CVN 79). The team was awarded the long lead time material for two additional Virginia-class submarine block five boats and the first two boats of Block six. We are excited to deliver New Jersey (SSN 796) in the first half of 2024. Meanwhile, Massachusetts (SSN 798), is nearing float off, which we anticipate in the first quarter of 2024.
In 2023, HII was awarded approximately $12.5 billion in new contracts, and our backlog is now approximately $48.1 billion. We are positioned well to execute on our backlog while growing in markets of critical importance to our customers.
I am proud of this team’s hard work and that HII remains an employer of choice, committed to supporting our customers in service of the nation. I ask you to remain focused on our mission and values in the year ahead as we build on our momentum.
Respectfully,
Chris Kastner
President and CEO
