Huntington Ingalls Industries HII recently delivered the first REMUS 130 unmanned underwater vehicle (UUV) to a U.S. ally, marking an important milestone for its autonomous maritime systems business.
The delivery highlights HII's continued investment in next-generation underwater technologies and expands the global presence of its REMUS family of UUVs.
HII’s Focus on REMUS UUVs
Huntington Ingalls’ REMUS family of UUVs is used to collect data for a variety of operations. They are well-known for their long service life, durability and easy upgradeability. The autonomous systems can operate independently or teamed with crewed platforms — such as Virginia-class nuclear submarines — expanding operational reach while reducing detection risk and personnel exposure.
Designed for flexibility, REMUS UUVs operate at different depths and durations, making them suitable for tasks like offshore exploration, scientific research and naval missions. Their modular design and advanced technology ensure reliable performance while keeping costs manageable. With proven capabilities, REMUS UUVs continue to enhance underwater operations across military and commercial sectors.
The REMUS 130 is the latest version of the REMUS 100 series and the third generation of the platform. Built on the proven REMUS 300 technology, it offers improved underwater capabilities, greater flexibility and a modular design while keeping costs and risks lower. The vehicle is powered by HII’s Odyssey software suite, which helps improve mission coordination, operational efficiency and autonomous operations across different platforms.
Growth Prospects
According to a report from Market Research Future, the increased demand for exploration activities among oil and gas manufacturers, along with the growing concerns regarding maritime security and cross-border maritime threats, has led to the growth of the UUV industry. Market Research Future also forecasts that the global UUV market is expected to witness a CAGR of 16.6% during 2025-2035 to reach $25.9 billion by 2035.
This market growth opportunity should boost Huntington Ingalls’ operating results as it is the largest producer of UUVs worldwide.
Opportunities for Other Defense Stocks
Other defense companies that are likely to benefit from the expanding global UUV market are discussed below:
General Dynamics GD: General Dynamics’ Mission Systems unit has a wide portfolio of autonomous UUVs, with its major programs including the Knifefish and Bluefin Robotics. Currently, the company is engaged in the production of next-generation UUVs for the U.S. and Australian Navy, which will be deployed on mine-hunting missions all over the world to protect sailors and their ships.
General Dynamics has a long-term (three to five years) earnings growth rate of 9.7%. The Zacks Consensus Estimate for GD’s 2026 sales indicates year-over-year growth of 4.7%.
BAE Systems PLC BAESY: BAE Systems’ Riptide UUVs have created unmatched vehicles by combining autonomous undersea platforms with world-class sensor and electronic payloads. These UUVs provide multiple capabilities like autonomy, navigation, signals intelligence systems, acoustic, sensor processing and many more.
BAE Systems has a long-term earnings growth rate of 15%. The Zacks Consensus Estimate for BAESY’s 2026 sales indicates year-over-year growth of 56.4%.
Lockheed Martin LMT: Lockheed Martin’s Marlin is a 10-foot-long autonomous underwater vehicle system. It uses advanced sensors and high-definition video to create 3D models of its undersea environment. With an operational depth of up to 1,000 feet below the surface, it caters to multiple civil and military operations.
Lockheed Martin has a long-term earnings growth rate of 18.5%. The Zacks Consensus Estimate for LMT’s 2026 sales indicates year-over-year growth of 5.3%.
HII Stock’s Price Performance
Shares of Huntington Ingalls have gained 27.5% in the past year compared with the industry’s 7.3% growth.
Image Source: Zacks Investment Research
HII’s Zacks Rank
HII currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).