HII is America's largest naval shipbuilder, operating two shipyards and a defense technology division, with roughly 80% of revenue coming from the U.S. Navy. The Newport News shipyard in Virginia builds and refuels nuclear-powered aircraft carriers and submarines — HII is the sole builder and refueler of U.S. nuclear aircraft carriers and one of only two companies capable of building nuclear submarines. The Ingalls shipyard in Mississippi builds non-nuclear warships, including Arleigh Burke-class destroyers, amphibious assault ships, and Coast Guard cutters. A third segment, Mission Technologies, provides defense technology services including C5ISR, cybersecurity, electronic warfare, AI/ML applications, and unmanned underwater and surface vehicles. HII sells essentially all shipbuilding output to the U.S. government under long-term contracts, most of them cost-reimbursable or hybrid structures, with revenue recognized on a percentage-of-completion basis. Given this structure, profitability in any period is driven by construction milestones and changes in cost estimates — HII has absorbed significant losses on pre-COVID contracts where labor productivity and supply chain performance have lagged original assumptions. The company is investing heavily in wages, workforce development, and outsourced fabrication capacity to improve throughput, and expects new contracts negotiated under current cost conditions to produce more predictable margins over time. Mission Technologies operates on cost-plus contracts, generating lower but more stable margins than shipbuilding, with growing exposure to the Navy's unmanned systems market through its REMUS underwater vehicles and Odyssey autonomy software platform.