Huntington Ingalls Industries, Inc. (HII) announced the formation of a new company – Stoller Newport News Nuclear or SN3 − a full-service nuclear operations and environmental services provider.
This restructuring aims at integrating the expertise of S.M. Stoller Corp. and Newport News Nuclear, the two subsidiaries of Huntington Ingalls. The company believes that the move will boost the market competitiveness of these businesses. In a sense, SN3 will be a one-stop resource for nuclear operations and environmental services capabilities for the Department of Energy and Department of Defense markets. Post restructuring, Newport News Nuclear will operate as a subsidiary of SN3.
Founded in 2007, Newport News Nuclear operates under Huntington Ingalls’ Newport News Shipbuilding (“NNS”) unit. S.M. Stoller Corporation is also an NNS business wing acquired by Huntington Ingalls in January last year.
Stoller has provided environmental and technical support to the U.S. government and the nuclear power industry for over 54 years. Its operations span 29 states across the U.S. with services ranging from managing environmental issues to highly complex multi-year remediation projects and short-term evaluation of local groundwater quality in anticipation of commercial construction.
Huntington Ingalls, the largest military shipbuilder in the U.S., primarily deals with the supply of nuclear and non-nuclear ships to the U.S. Navy and Coast Guards. The company also provides manufacturing, engineering and management services to the commercial and non-commercial oil, gas and energy markets.
Last year, the company acquired Houston-based UniversalPegasus International Holdings (“UPI”), a supplier of a wide range of engineering and project management services to the energy industry across the world. UPI with 50 years of experience in the energy infrastructure market is known for its engineering, designing, inspection and construction management services to domestic and international customers.
Such deals and internal restructuring point to the company’s focus on diversifying into the energy and environmental business from its already entrenched presence in military shipbuilding.
The company is one of the two contractors equipped to build nuclear-powered submarines in the U.S. with the other being General Dynamics Corp. (GD). Huntington Ingalls presently carries a Zacks Rank #3 (Hold). Better-ranked stocks from the sector include The Boeing Co. (BA) and Textron Inc. (TXT), both with a Zacks Rank #2 (Buy).
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