Shares of warship builder Huntington Ingalls Industries rose in premarket trading and are on track for the largest annual gain in 12 years, driven by news of President Trump’s continued push to rebuild the U.S. Navy.
HII gained 5% on Monday and another 5% in premarket trading early Tuesday after President Trump announced a plan on Monday evening to build two new “Trump-class” battleships, to acquire 20-25 of these ships in the coming years.
Here are critical details about Trump’s major announcement Monday evening (courtsey of Goldman analyst Noah Poponak):
Trump-class battleships. On December 22, 2025 President Trump announced that he had approved a plan for the U.S. Navy to build two new “Trump-class” battleships, with the goal of acquiring 20-25 of these ships in the coming years. In his address, the President noted these 30,000-40,000 ton ships will carry a large quantity of missiles, including hypersonic missiles, and will also be outfitted with electromagnetic rail guns and directed energy lasers. Trump-class battleships will also carry nuclear-armed sea launched cruise missiles (currently under development) adding an additional element of nuclear deterrence to the Navy. Trump-class destroyers appear to be designed as the center of enhanced command and control networks at sea, as the Navy looks to field more autonomous assets and traditional vessels in the coming years. The WSJ has reported that the U.S. Navy will launch a vendor competition, with plans to procure the first hull in 2030.
Poponak told clients that his 12-month price target for HII was upgraded to $384 from $356.
This year, HII shares are up a whopping 87%, the largest annual increase since the 107% increase in 2013.
Shares are at record high levels.
The S&P 500 Aerospace & Defense Index nears record highs.
Secretary of the Navy John Phelan recently said that the U.S. military will be acquiring a “new frigate class based on HII’s Legend-Class National Security Cutter design.”
Earlier this year, HII stock had one of the largest intraday gains on record as Trump touted his move to revitalize domestic shipbuilders.
All of this plays into the total reposturing of the U.S. military to focus on Western hemispheric defense and securing the hemisphere ahead of the 2030s. We’ve outlined how to profit from this (read here).
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