Naval Systems & Shipbuilding

Oceaneering International's Aerospace and Defense Technologies segment has secured a follow-on U.S. Navy contract for Dry Deck Shelter maintenance, overhaul, engineering, and field change services, a five-year agreement with a potential value of US$154,000,000 supporting special operations forces and undersea vehicles. The award strengthens the near-term catalyst of growing ADTech revenues while modestly reducing the risk that earnings depend too heavily on deepwater oil and gas project activity. It follows the July 2026 Defense Innovation Unit CAMP shortlisting for an Extra Large Uncrewed Undersea Vehicle, together pointing to ADTech increasingly supporting undersea defense missions. Oceaneering's narrative projects $3.5 billion revenue and $103.3 million earnings by 2029, requiring 6.5% yearly revenue growth and an earnings decrease of $246.8 million from $350.1 million today, with a $46.00 fair value implying 4% upside. The most pessimistic analysts assumed earnings might fall toward about US$119 million by 2029, a view the new Navy contract could meaningfully test.

Mitsubishi Heavy Industries announced on the 2nd that it will invest approximately 100 billion yen to expand the construction capacity of its Shimonoseki Shipyard. The company will acquire industrial land on Choshu Dejima, an artificial island being developed by the city of Shimonoseki in Yamaguchi Prefecture, and build a new factory there. The move is aimed at strengthening its shipbuilding business, which the government is seeking to promote, and at the Shimonoseki Shipyard, the company's subsidiary Mitsubishi Shipbuilding builds ferries and car carriers. In addition to transferring some of the shipyard's functions to the newly acquired land, the company will build a factory to manufacture hull blocks, the components that make up a ship, with operations targeted to begin in 2030.

Lockheed Martin's Rotary and Mission Systems business received a $94.2 million contract modification from the U.S. Navy to support continued development and integration of the AEGIS Combat System for the Royal Canadian Navy. The award funds system engineering, computer program baseline development and integration testing of AEGIS Weapon System elements and interfaces, with work performed primarily in Moorestown, New Jersey, and expected completion by December 2027. The contract is funded through the Foreign Military Sales program, underscoring Canada's continued investment in advanced naval capabilities. AEGIS integrates sensors, weapons and command-and-control capabilities so ships can detect, track and respond to airborne and surface threats. The award adds to Lockheed Martin's long-term AEGIS-related work and supports its position in the naval defense market.

Huntington Ingalls Industries received a US$5.1b contract to refuel and overhaul the USS Harry S. Truman carrier, work that will be carried out at the company's Newport News Shipbuilding division in Virginia. The refueling and complex overhaul, or RCOH, lands squarely in the backlog and cash flow side of the company's business, which is built on a $56.9 billion backlog of multi-year, multi-program contracts. Separately, HII reached preliminary acceptance of the future USS John F. Kennedy aircraft carrier with the U.S. Navy ahead of formal delivery, a milestone that speaks to execution on complex Ford-class programs. Huntington Ingalls Industries is a US$10.2b aerospace and defense contractor focused on designing, building, overhauling and repairing military ships for the U.S. fleet, making large carrier projects like Truman and the future John F. Kennedy central to its operations. The carrier work keeps heavy yards fully loaded, though it also locks the business further into large manned platforms while management commits capital, partners and factory space to ROMULUS and REMUS unmanned systems.

The U.S. Navy has doubled its fleet capacity to operate the MQ-25A Stingray unmanned aircraft system over a five-month period by standing up a second operational MD-5C Ground Control Station powered by Lockheed Martin Skunk Works MDCX. USS Theodore Roosevelt (CVN 71) received the first operational MD-5C in March 2026, followed by USS Ronald Reagan (CVN 76) in August 2026. The MD-5C is a highly complex system-of-systems that includes the government Command, Control, Communications, Computers and Intelligence network, Lockheed Martin's MDCX software and hardware, and additional government-produced ancillary equipment. Within the Ground Control Station, MDCX is the mission planning and execution software that enables Navy operators to command and control the MQ-25A Stingray, extending carrier air wing reach and freeing manned aircraft for higher-priority missions. Capt. Daniel Fucito, PMA-268 program manager, said the two operational unmanned air warfare centers aboard CVN 71 and CVN 76 bring the Navy closer to integrating unmanned carrier aviation into the fleet, while MDCX Program Manager Ben Tongue said the team has doubled the number of U.S. Navy carriers ready to fly the MQ-25A Stingray in five months.

General Dynamics' Electric Boat business has received a $40 million order from the U.S. Navy for 19 hydraulic actuators used on Virginia-class submarines. The work will be performed in Groton, CT, and is expected to be completed by December 2040, a long timeline that highlights the extended nature of the Navy's submarine procurement and sustainment programs. Hydraulic actuators are critical components supporting submarine system operations, and continued procurement of such equipment reflects the Navy's focus on maintaining fleet readiness while supporting ongoing Virginia-class production. The award reinforces Electric Boat's position as a key supplier to the Navy's submarine programs, and demand for Virginia-class submarines is expected to remain an important driver for General Dynamics as the Navy expands and modernizes its undersea fleet. Shares of GD have lost 2.5% in the past year compared with the industry's 16% decline, and the stock trades at a forward 12-month Price/Sales of 1.56X versus the industry average of 2.19X.

Lockheed Martin Missiles and Fire Control has been awarded a $244.96M firm-fixed-price modification to a previously awarded U.S. Navy contract, adding scope to procure Full Rate Production 2 of F/A-18E/F Infrared Search and Track Block II systems. That modification covers 48 infrared receivers, 45 for the Navy and three for the Royal Australian Air Force, along with 74 processors and 27 inertial measurement units for the Navy, plus test equipment maintenance and lay-in material, with work performed across Florida, California and Pennsylvania and expected completion in February 2031. The Navy also awarded Lockheed a $52.11M cost-plus-fixed-fee modification to a previously awarded contract to incorporate engineering changes into F-35 Lot 18-19 air vehicle production for the Air Force, Marine Corps, Navy, F-35 Cooperative Partners and Foreign Military Sales customers. Separately, Lockheed Martin Rotary and Mission Systems of Moorestown, New Jersey, was awarded a $724M contract modification for the Japanese Ministry of Defense, raising the total contract value from $1.64B to $2.36B. That contract covers delivery of the Aegis System-equipped vessel #1 and ASEV #2 AEGIS Combat System to Japan, with work performed in Moorestown, New Jersey, and Japan from Sept. 29, 2026, through March 31, 2030.

HII announced that its Newport News Shipbuilding division has achieved preliminary acceptance of the aircraft carrier John F. Kennedy (CVN 79), the second Gerald R. Ford-class nuclear-powered carrier. Preliminary acceptance is the final step before formal delivery to the U.S. Navy, and it allows the Navy to begin underway test and evaluation of Kennedy's unique systems while the crew gains operational proficiency. CVN 79 successfully completed acceptance trials in August. Bryan Caccavale, NNS vice president of program management, said achieving preliminary acceptance is another step toward ensuring the U.S. Navy has the aircraft carriers it needs to carry out its mission of defending the nation. The carrier departed Newport News Shipbuilding today and will transition to Naval Station Norfolk.

Nel Hydrogen US, a subsidiary of Nel ASA, has received a new purchase order from Collins Aerospace for PEM electrolyser stacks valued at approximately USD 12 million. The equipment will generate oxygen for life-support systems used on US submarines, with deliveries expected throughout 2027 and 2028. The stacks will be manufactured at Nel's facility in Wallingford, Connecticut. Chief Commercial Officer Todd Cartwright said the order extends a long-standing cooperation built around reliable oxygen generation for demanding submarine applications, and confirms the continued relevance of Nel's PEM technology and manufacturing capabilities. The order reflects growing momentum for Nel's technology in defence applications, where reliability, operational resilience and a long service life are paramount.

Insiders say Iran sees little possibility of reaching an agreement to end the war with the United States and reopening the Strait of Hormuz before the midterm elections in November, while talks between the two sides on the sidelines of last week's UN General Assembly made only slight progress. Iran believes there is a high likelihood the conflict will escalate after the US midterm elections on November 3. President Donald Trump told reporters on Monday, September 28, that US representatives are discussing negotiations with Iran through intermediaries but declined to give details, stressing that the matter will end one way or another and will conclude fairly quickly. A US official said Washington will not reach a deal with Iran without resolving the issue of Iran's nuclear program, and that Trump is ready to ease sanctions and unfreeze Iran's frozen assets if Iran shows concrete progress on the nuclear issue. Meanwhile, Iranian Foreign Minister Abbas Araghchi, who met last week with Trump representatives Jared Kushner and Steve Witkoff, remains in the United States for further discussions through intermediaries. Qatari mediators are expected to arrange separate talks with Abbas Araghchi in New York and to hold discussions with the US side on Monday or Tuesday local time. The main issue is refining the proposal for a 7-day opening of Hormuz that Iran put forward last week. Mediators are pushing for an agreement different from the memorandum of understanding signed by Iran and the United States in mid-June, which led to a ceasefire and helped increase shipping through the Strait of Hormuz but collapsed within just two weeks and was criticized by US politicians as giving Iran too much financial benefit, especially through sanctions relief. Iran continues to restrict shipping in the Strait of Hormuz, leaving cargo and oil transport volumes far below pre-war levels. Two sources said the US government has told intermediaries that it wants Iran to give clear commitments on reopening the Strait of Hormuz and to make concessions on the nuclear program. Iranian President Masoud Pezeshkian reiterated to the UN General Assembly that Iran does not seek to develop nuclear weapons but will not give up its right to develop nuclear technology for economic benefit.

Lockheed Martin's Rotary and Mission Systems unit won a $155.7M cost-plus-award-fee contract modification to support systems engineering and software integration for the Integrated Combat System across U.S. Navy and Coast Guard surface forces. The work is expected to be completed by September 27, 2026. Of the $96.3M in fiscal 2025–2026 Navy procurement, R&D, weapons procurement, and operations funds obligated at award, $46.3M comes from fiscal 2025 other procurement and $40.6M from fiscal 2026 RDT&E, while $6.2M of the obligated funds will expire at the end of the current fiscal year. Naval Sea Systems Command is the contracting activity.

Guggenheim initiated coverage of Curtiss-Wright Corporation with a Buy rating and a $786 price target, representing 41% upside potential at the time of its September 15 update, citing rising global defense spending and elevated power generation demand as a compelling one-two punch. The call rests on businesses Curtiss-Wright already operates: Aerospace & Defense market sales rose 6% year over year in the second quarter on higher naval defense revenue and stronger electromechanical actuation sales, while commercial market sales rose 5%, with Power & Process growth driven mainly by commercial nuclear solutions. Total company orders increased 8% to $1.1 billion in the quarter, with record demand for defense electronics, and backlog ended at $4.5 billion, 10% higher than at the end of 2025. In July the company announced an $80 million multi-year expansion of its Cheswick, Pennsylvania operations serving naval defense and commercial nuclear customers. For the quarter, sales rose 5% to $924 million, adjusted diluted EPS increased 15% to $3.72, and adjusted operating margin improved 110 basis points to 19.4%, prompting management to raise its full-year outlook to 2026 adjusted sales growth of 8% to 9% and adjusted diluted EPS of $15.10 to $15.40, growth of 14% to 16%.

Chancellor John Healey has set out plans to reindustrialise Britain, announcing a £100 million fund for local mayors to boost apprenticeships, a £300 million investment by Rolls-Royce in British factories, and confirmed support for British shipbuilding. In his speech to the Labour Party conference in Liverpool, Healey said the new Local Apprenticeship Service would see teams acting like football scouts to link young people with firms, describing it as a down payment on work to tackle the almost one million young people not in employment, education or training. He also confirmed previously trailed plans for £6 billion of government contracts for British shipyards, and said Rolls-Royce would invest £300 million in factories in Derby, Bristol, Glasgow and Rotherham. Healey, who will deliver his first Budget next month, acknowledged he did not have the money available to his predecessor Gordon Brown and sought to reassure markets that fiscal discipline would be at the core of his Budget. The speech came as diesel hit a record 199.18p a litre and the Confederation of British Industry said firms across the private sector expect activity to fall in the three months to December, though CBI chief executive Rain Newton-Smith said Healey had set out a strong vision with many of the right signals.

The TISCO Economic and Strategic Analysis Center, or TISCO ESU, assesses that global financial markets are entering a phase of capital competition, as governments around the world need to borrow heavily to expand defense budgets while private-sector big tech and hyperscaler firms seek to raise enormous sums to accelerate the buildout of data center infrastructure, chip fabrication plants, AI facilities, and power plants. This is pushing interest rates and government bond yields up by roughly 0.60 to 0.90 percent. Komson Prapakpol, head of the TISCO Economic and Strategic Analysis Center, said the United States plans to expand its defense budget from 1 trillion dollars to 1.5 trillion dollars, an increase of 50 percent, while Japan aims to raise defense spending from below 2 percent to 3.5 percent of GDP, the highest level since the period from 1970 to 1980. Germany and France are also accelerating increases in their security budgets. Thanaphat Thanachat, an analyst at TISCO ESU, said the United States has public debt exceeding 100 percent of GDP, or more than 40 trillion dollars, and a fiscal deficit as high as 6 percent of GDP per year, driving its interest burden to double that of four to five years ago. France's public debt has risen by nearly 20 percent of GDP between 2019 and 2025, with an annual deficit of 5 percent of GDP. As for the interest rate path of the three major central banks, TISCO ESU expects the Federal Reserve to raise rates one more time, by about 0.25 percent, at its December meeting, ending at 4.25 percent, and to hold at that level through 2027 before cutting in 2028. The European Central Bank is expected to raise rates one more time, by about 0.25 percent, in December, while the Bank of Japan is expected to gradually keep raising rates until they reach 1.75 percent in mid-2027. The yield on 10-year U.S. government bonds is expected in the base case to hold steady at 5 percent through the end of 2026, but if the Federal Reserve fails to control inflation, the worst case could see the bond yield rise to 6 percent.

It has emerged that negotiators for the United States and Iran are exploring a phased agreement aimed at Iran reopening the Strait of Hormuz and the United States lifting its naval blockade of Iranian ports. According to people familiar with the talks, the two countries are pursuing discussions aimed at breaking the deadlock on the 24th, on the sidelines of related meetings of the United Nations General Assembly being held in New York, with Qatari officials mediating the negotiations. The phased agreement is expected to take a form similar to a memorandum of understanding signed by the United States and Iran in mid-June, but the ceasefire that was established, albeit precariously, on the back of that memorandum collapsed just a few weeks later. Reuters was first to report on the talks over a phased agreement. A White House official said President Trump remains open to dialogue with Iran, while stressing that the United States has no need to negotiate, as intensified sanctions and the naval blockade are pressuring the Iranian economy and the United States holds the upper hand. Meanwhile, a spokesman for Yemen's Iran-aligned Houthi armed group said in a statement on Telegram that it had attacked Saudi Arabia twice using ballistic missiles, cruise missiles, and drones. The first attack targeted a key site in the Saudi capital Riyadh, and the second targeted a Saudi Aramco facility in Yanbu on the Red Sea coast, according to the spokesman.

Tutor Perini Corporation announced that its subsidiary, Perini Management Services, Inc., has been awarded a contract valued at approximately $43 million by the U.S. Coast Guard to design and construct improvements at the Coast Guard's property at East Tongue Point in Astoria, Oregon. The project, the Phase 2 Astoria Fast Response Cutter Homeport effort, covers construction of facilities to accommodate the homeporting of four Fast Response Cutters. Those new facilities consist of a new fixed pier, two floating docks, and a new uplands Maintenance Weapons Division cutter support facility, along with demolition of existing facilities, in-water dredging, and utility and site improvements. Design work is expected to begin in late September 2026, with substantial completion anticipated in May 2029. The contract value will be added to the Company's backlog in the third quarter of 2026.

BWX Technologies announced it has received an inaugural investment grade credit rating of BBB with a Stable Outlook from Fitch Ratings. Fitch assigned the company's revolving credit facility a BBB+ rating and its 4.125% senior notes due in 2028 and 2029, BBB ratings. Chief financial officer Mike Fitzgerald said the rating reflects BWXT's critical role in providing nuclear solutions to national security and commercial power customers, its strong financial position and its disciplined approach to capital allocation. Fitch cited BWXT's strong position in supplying critical nuclear reactor components and fuel for U.S. naval propulsion and other strategic government programs, backed by specialized licenses, intellectual property and the ability to meet stringent regulatory requirements. The agency also pointed to multi-year revenue visibility and cash flow stability supported by a robust backlog, along with conservative financial policy and the flexibility to fund growth while maintaining leverage consistent with the investment grade rating.

South Korean President Lee Jae-myung and US President Donald Trump agreed that discussions on a strategic investment project between the two countries have made significant progress, after the two met for 30 minutes on the sidelines of the United Nations General Assembly yesterday. Wi Sung-lac, South Korea's national security adviser, said the two leaders also agreed to strengthen cooperation and continue discussions on various issues under the joint statement issued after their summit last November, including nuclear fuel reprocessing, nuclear-powered submarines, shipbuilding, and the transfer of wartime operational control of military forces from the United States to South Korea. Trump also reaffirmed his readiness to open negotiations with North Korea again, and the two leaders agreed to maintain close contact to advance the peace process. The meeting came after South Korea's Ministry of Industry reported to legislators yesterday on implementation plans under the two countries' 350 billion dollar investment package, which includes a gas-fired power plant in Texas identified as possibly the first investment project under the package, as well as the possibility of investment in nuclear energy and a liquefied natural gas project in Alaska. Wi said President Lee also views the US-China summit scheduled for Thursday as important for developments in the region, including South Korea-China relations, and expressed hope that the meeting will be successful.

Leonardo DRS announced September 17 that it signed a contract with Doosan Enerbility to supply electric propulsion for South Korea's KDDX destroyer program, covering propulsion motors and the electronic drives that control them. The broader KDDX program is expected to include at least six destroyers, but the announcement does not establish funded orders covering all six ships, and no contract value, delivery timing, or expected profitability was disclosed. Leonardo DRS says its hybrid electric drive systems have been provided for 20 Korean frigates across the FFX Batch II, III and IV programs, an existing relationship the company cites as strengthening its commercial case. The award fits an area already contributing to growth: Leonardo DRS reported second-quarter revenue of $913 million, up 10% year over year, with electric power and propulsion among the growth drivers, and funded backlog reached approximately $5.1 billion at June 30, up 17%, figures that predate the September announcement. Insider Monkey's database showed 32 hedge funds holding Leonardo DRS at the end of 2Q2026, up from 28 funds three months earlier.

HII has expanded its unmanned systems production campus in Pocasset, Massachusetts, by 10,000 square feet, increasing the existing 40,000-square-foot manufacturing facility's capacity by 25 percent to meet growing global demand for autonomous maritime platforms. The expansion adds production capacity for the U.S. Navy's Lionfish small unmanned undersea vehicle, which is based on HII's commercial REMUS 300 platform and is currently in production, following a Navy option-year contract awarded to HII in July for continued Lionfish production. The facility will also support production of HII's REMUS 620 unmanned underwater vehicle and advance integration of the company's Odyssey Autonomous Control Solutions software, including simulation and modeling capabilities and autonomy hardware for ROMULUS unmanned surface vessels. HII celebrated the expansion with a ribbon-cutting ceremony attended by U.S. Rep. Bill Keating, MA-09, a longtime supporter of the company's Massachusetts operations who also spoke at the 2014 grand opening of the Pocasset facility. HII currently employs approximately 300 people in Pocasset and has added 50 employees year to date in 2026; the REMUS family of unmanned underwater vehicles, which marked its 25th anniversary in 2026, has seen more than 750 vehicles delivered to customers in more than 30 countries, including 14 NATO members, with more than 90 percent of systems delivered over the past 25 years still in active service.

South Korea's Minister of Trade, Industry and Energy Kim Jung-kwan said on the 22nd that the government has selected the first project to be pursued under a $350 billion investment agreement with the United States. Kim told lawmakers that no decision has yet been made on whether to proceed with two other projects under consideration, saying they reflect the "interests of both countries" but declining to give details. The explanation is seen as an important step as the two countries work toward final arrangements to implement a trade agreement that lowers US tariffs on South Korean goods to 15 percent. According to people familiar with the negotiations, a gas-fired power plant in Encinal, Texas, was described to lawmakers as the first candidate project, and South Korean media reported that the 6.3-gigawatt plant is worth $22.3 billion and is intended to supply power to AI data centers and semiconductor factories. Of the $350 billion, $150 billion is earmarked for shipbuilding, while details of the remaining $200 billion in strategic investment have not yet been finalized. South Korea is also considering building up to eight large nuclear reactors in the United States, acquiring a minority stake in US nuclear company Westinghouse, and participating in an Alaska liquefied natural gas project, but no agreement has been reached on investment in Westinghouse, and South Korea is seeking a $20 billion annual cap on investment to limit the impact on its domestic foreign exchange market.

President Donald Trump announced a security agreement with Denmark and Greenland that would give the United States a permanent role in the Arctic territory's security and prevent adversaries from establishing military bases or making sensitive investments without U.S. approval. Trump said the United States would begin developing a larger military presence on the island, and the agreement is expected to be signed during the United Nations General Assembly in New York, though its full terms have not been released. Morningstar analysts led by Christian Aufsatz said Greenland's strategic importance is likely to be realized sooner through its military position and potential Arctic trade routes than through its mineral resources, noting the island's role in the Greenland-Iceland-United Kingdom Gap, a key maritime corridor linking North American and European markets. The commentary said greater Arctic navigation could eventually create routes shortening travel between Asia, Europe and North America, increasing the potential for Greenland to serve as a location for deep-water ports, refueling facilities and logistics stations, while cautioning that climate-related uncertainty remains substantial. Morningstar also said Greenland has offshore hydrocarbon basins and rock formations that could host lithium, copper and rare earth elements, but stressed that geological potential does not guarantee commercially viable resources, as Greenland has not achieved the same exploration success as other regions and does not currently have significant mineable mineral deposits or proven oil and gas reserves ready for extraction.

Mercury Systems reported fourth quarter fiscal 2026 revenues of $289.8 million, up 6.1% year on year and 9.2% above analysts' expectations, as the 14 defense contractors stocks tracked by the report collectively beat consensus revenue estimates by 4% and guided next quarter 1.1% above expectations. Chairman and CEO Bill Ballhaus said the company delivered record bookings, record backlog, record revenue, the highest EBITDA margin of the year, and robust free cash flow, though Mercury shares are down 18.5% since reporting and trade at $85.56. Huntington Ingalls posted the group's best quarter, with revenues of $3.42 billion, up 10.9% year on year and 8.2% above expectations, while its shares have traded sideways at $278.53. Parsons delivered the weakest quarter, with revenues of $1.58 billion, flat year on year and 1.9% below expectations, alongside full-year revenue and EBITDA guidance that missed significantly, sending its stock down 25.5% to $46.19. Northrop Grumman reported revenues of $10.88 billion, up 5.1% and 0.5% above expectations, with shares flat at $526.95, and Leidos reported revenues of $4.56 billion, up 7.2% and 2.6% above expectations, with its stock up 10.4% at $131.09. On average, defense contractors shares are down 2.9% since the latest earnings results.

The U.S. Department of War announced a $336,112,000 Navy contract for Huntington Ingalls Industries to advance procurement of long-lead materials for construction of the future USS William J. Clinton, designated CVN 82. Work will be executed in Newport News, Virginia, with completion anticipated by March 2039, and shipbuilding and conversion funding from FY 2026 will be obligated at the time of award. The award is a sub-component of the Navy's larger aircraft carrier replacement program, which defense websites say the service plans to fund at $22.34 billion over the next five years, with this contract seen as among the first in a sequence of awards as procurement accelerates. The sole-source contract reaffirms HII's status as the sole nuclear carrier builder for the U.S. Navy and extends revenue visibility to 2039, supporting the company's raised full-year shipbuilding revenue guidance of $10.2 billion to $10.4 billion and shipbuilding operating margin of 6% to 6.5%. The contract is cost-only and undefinitized, meaning work begins before final pricing and terms are agreed, adding to cash strain after HII used $31 million of net cash in operating activities in Q2, spent $193 million on capital expenditure, and posted negative free cash flow of $611 million for the first half of 2026 against full-year FCF guidance of $500-600 million. Hedge fund ownership in HII rose 18% in the second quarter to 47 funds from 40, with AQR Capital Management remaining the largest stakeholder at approximately $184 million as of June 30, 2026, followed by Diamond Hill Capital at over $55 million and Citadel Investment Group at $53 million.

Marusan Securities has maintained its "Buy" rating on Tokyo Keiki and raised its target price to 13,300 yen. The move reflects the company's upward revision of its full-year company plan on growth in marine and port equipment as well as defense and communications equipment, and the brokerage also expressed the view that over the medium term new areas for the company, such as unmanned asset-related business and work for Australia's next-generation general-purpose frigates, will drive an acceleration in earnings growth. Buying in defense-related names today also provided support.

BWX Technologies announced on September 3 that it secured a $4 million contract to develop a conceptual design for the first module of a new Lithium Processing Facility for the U.S. National Nuclear Security Administration. The planned facility is meant to modernize and replace aging infrastructure used for lithium reprocessing while supporting purification, component production, and other nuclear security activities. Heatherly Dukes, president of BWXT's Technical Services Group, said the project represents an important investment in modernizing the nation's nuclear security infrastructure. The $4 million award is small relative to BWXT's more than $8.6 billion backlog at the end of the second quarter and is unlikely to significantly affect near-term earnings and cash flows, but it could lead to follow-on work: after the initial four-month first phase, the NNSA plans to select one of two companies for the next design phase and potential construction contract. The win also fits a broader expansion of BWXT's government business, which includes a near-sole-source monopoly supplying nuclear reactors and high-assay enriched fuel for the U.S. Navy's submarine and aircraft carrier fleet, and its BWXT Advanced Nuclear Reactor technology was recently selected by the U.S. Army for its Janus program.