{"id":14309,"date":"2026-07-31T21:47:34","date_gmt":"2026-07-31T21:47:34","guid":{"rendered":"https:\/\/sawahsolutions.com\/range\/hiis-sea-drone-business-is-growing-but-revenue-is-modest-ceo-says\/"},"modified":"2026-07-31T21:47:34","modified_gmt":"2026-07-31T21:47:34","slug":"hiis-sea-drone-business-is-growing-but-revenue-is-modest-ceo-says","status":"publish","type":"post","link":"https:\/\/sawahsolutions.com\/range\/hiis-sea-drone-business-is-growing-but-revenue-is-modest-ceo-says\/","title":{"rendered":"HII\u2019s sea drone business is growing, but revenue is \u2018modest,\u2019 CEO says"},"content":{"rendered":"
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The nation\u2019s largest military shipbuilder sees maritime drones producing \u201cmodest\u201d revenue now, but expects that to grow as the Navy builds its unmanned fleet, HII\u2019s chief executive said during Thursday\u2019s earnings call.\u00a0<\/p>\n

\u201cWe know it\u2019s going to become more of the Navy fleet because [unmanned systems] can do excess missions and expand the fleet size such that they can do things that large capital ships can\u2019t do and take the place of large capital ships in some of the missions,\u201d said Chris Kastner, HII\u2019s CEO and president. \u201cFrom a revenue standpoint right now, it\u2019s pretty modest.\u201d\u00a0<\/p>\n

Kastner went on to say that HII\u2019s unmanned business, which is part of the Mission Technologies division, is growing quickly. Earlier this month, the Navy extended its Lionfish unmanned undersea contract that was originally awarded in 2023 for nearly $350 million.\u00a0<\/p>\n

\u201cI don\u2019t really want to comment on how large it\u2019s going to be, but I\u2019ll tell you one thing\u2014it\u2019s the fastest-growing business unit we have,\u201d Kastner said, adding that the company is competing for the Navy\u2019s medium unmanned surface vehicle program.<\/p>\n

\u201cThe international and domestic pipeline is strong, we\u2019re going to pursue those\u2026It\u2019s a good business unit. It\u2019s a growing business unit. The profitability should be solid because it\u2019s firm fixed-price contracts. We think we\u2019re very competitive, and we\u2019re going to continue to invest in it and watch it grow. Now, is it going to be a billion-dollar battleship? No. We think it\u2019s going to grow. We think there\u2019s significant opportunity, and we think it\u2019s going to be a greater part of the fleet.\u201d<\/p>\n

Sea drones have become increasingly visible on the battlefield as navies use them for surveillance, rescues, and kinetic strikes. And more companies have entered the sector as the Navy boosts its unmanned systems budget and homes in on how it wants to integrate them into its fleet\u2014while pushing companies to grow the capacity to build them quickly.<\/p>\n

HII has emphasized its tech business more in recent years, often stressing the segment\u2019s poised growth. Mission Technologies had $760 million in second-quarter revenue this year, an approximate $31 million and nearly 4 percent drop compared to last year.\u00a0<\/p>\n

That\u2019s \u201cprimarily due to lower volumes in all domain operations in global security, partially offset by higher volumes in warfare systems and unmanned systems,\u201d Tom Stiehle, HII\u2019s chief financial officer and executive vice president, said during Thursday\u2019s call.\u00a0<\/p>\n

The Mission Technologies business is expected to grow about 5 percent in the next five years and generate up to $3.2 billion in revenue for fiscal year 2026, according to the company\u2019s earnings update.\n\n<\/svg><\/p>\n<\/div>\n