Huntington Ingalls Industries HII is strengthening its Mission Technologies business as the U.S. military increases its focus on intelligence, surveillance and reconnaissance (ISR), network services and all-domain capabilities. In August 2026, the company received a $2.2 billion task order to provide advanced surveillance, tracking, intelligence, reconnaissance and analysis capabilities to support U.S. Southern Command (SOUTHCOM).
The STINGRAI program will help SOUTHCOM detect, monitor and disrupt illicit activities across Central America, South America and the Caribbean. HII will lead an integrated team providing intelligence-gathering capabilities, advanced technologies and adaptable platforms to support regional security and operational readiness.
The seven-year task order highlights growing demand for integrated ISR and intelligence capabilities as the U.S. military faces increasingly complex and evolving threats. HII’s expertise across C6ISR, Artificial Intelligence, electronic warfare, cyber and unmanned systems positions it to address these requirements.
The award also expands HII’s role in supporting homeland security and multi-domain operations. As defense customers increasingly seek faster access to actionable intelligence and greater situational awareness, demand for the company’s Mission Technologies solutions should remain healthy.
With a large multiyear contract, established ISR capabilities and broad exposure to emerging defense technologies, HII is well-positioned to benefit from sustained investments in intelligence and all-domain mission systems.
Defense Stocks to Keep on the Radar
Other defense companies strengthening their ISR and intelligence capabilities are discussed below:
Leidos LDOS: Leidos provides ISR operations, intelligence analysis, sensor integration and threat assessment for U.S. defense customers. Its solutions process data from multiple sensors and convert it into actionable intelligence, supporting faster decision-making across air, space and other domains.
RTX Corporation RTX: RTX develops advanced reconnaissance and surveillance systems, including multispectral imaging and radar technologies. Its MS-110 system uses AI and machine learning to process wide-area imagery and support rapid detection and classification of threats, strengthening its position in the growing ISR market.
The Zacks Rundown for HII
Shares of HII have surged 2.5% in the past year against the industry’s 11.3% decline.
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The company's shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 0.79X compared with its industry’s average of 2.29X.
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The Zacks Consensus Estimate for HII’s 2026 and 2027 earnings has moved north over the past 60 days.
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HII stock 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).