HII CEO Mike Petters: $22B Contract Sets Rhythm for Submarine Production Over Next 10 Years

Mike Petters, CEO of Huntington Ingalls Industries and a previous Wash100 award winner, told CNBC’s “Squawk Alley” program in an interview posted Tuesday about the potential impact of a $22B contract with the U.S. Navy to build nine Virginia-class submarines.

“The contract establishes the rhythm for submarine production over the next decade. It helps us balance the Virginia-class program with the start of Columbia-class program,” Petters said.

“It goes well with two aircraft carrier contract that we got back at the beginning of this year. All of that pushes our backlog up close to $50B,” he added.

General Dynamics' Electric Boat subsidiary will work with Huntington Ingalls Industries’ Newport News Shipbuilding division to build the Block V submarines under the multiyear contract modification that includes an option for a 10th vessel, which could bring the contract’s ceiling value to $24.1B if exercised.

During the interview, Petters also discussed the scheduled christening of the USS John F. Kennedy Ford-class aircraft carrier and shared his views on intellectual property theft.