As Funding Increases, How Can the Navy and Its Partners Work Together?

A Marine loads an AMRAAM onto an AV-8B Harrier aboard the amphibious assault ship USS Essex (LHD 2). A Department of Defense initiative to expand AMRAAM and other weapons buys helped stabilize the defense industry. Credit: U.S. Navy | Mass Communication Specialist 3rd Class Isaak Martinez

By Vicky Uhland, Seapower Correspondent 

In a new era of acquisition, it’s important to remember the most pressing operational need for the U.S. Navy is readiness. And the good news is that “today’s fleet is more forward than it’s ever been in my career. We are absolutely ready,” said Rear Admiral Thomas Dickinson during the Monday afternoon panel discussion “Speed to the Fleet.” 

“Readiness in nonnegotiable. Without it you don’t have capability or capacity,” said Dickinson, USN program executive officer for integrated warfare systems. “It might not be as sexy as new capability, but readiness is the king.” 

In a standing-room-only session, Dickinson and panelists from industry and the research community discussed how they can best work together to deliver readiness faster to the fleet, both now and in the future.  

“We’re moving from a just-in-time to a just-in-case mentality,” Dickinson said. “That’s the mentality we need. We cannot be ready enough. Urgency and resilience is really the call.”  

Dickinson said industry partners can help the Navy achieve readiness through detailed, real-time insights and data. In the current warfare environment, “it’s a gift to be able to see how we’re performing and make improvements. Innovation and learning go hand-in-hand.” 

But as the Navy ramps up its readiness, it’s logical there will be more risk, Dickinson said. That’s where data from both the Navy and its partners comes in. “We have to be able to quantify risk, and it has to be based on data,” he said. “We’re getting better at collecting data quickly.”  

Industry Viewpoints 

Panelist Barbara Borgonovi, president of naval power for Raytheon, said one of the main things helping her company aid the Navy in its readiness initiatives is the landmark agreement with the Department of Defense to expand five critical munitions: The AMRAAM missile; the block IB and block IIA variants of the SM-3 interceptor; the SM-6 missile; and the land attack and maritime strike variants of the Tomahawk cruise missile. 

Borgonovi said this multiyear commitment ensures that Raytheon will have consistent demand, which will help the company make investments in suppliers, employees and other sources.  

“We’re going to make billions of dollars in investments” in the five critical munitions, she said, noting that some Raytheon programs are increasing capacity by five to 10 times.  

From the data standpoint, the Navy’s change in focus from activities to outcomes is altering how it interacts with industry, said Vincent Bauer, research program director, data science integration, CNA. 

“The Navy is extremely complex” and its processes can be its biggest bottleneck in working with industry. “Data cuts through that complexity” and helps the Navy become a better customer for industry, he said. 

Panelists also answered questions from audience members and session moderator Megan Eckstein, founder of Maeday Communications, including: 

What challenges does money solve, and what will it not fix? 

The Navy is making generational investments for critical munitions and new entrants, Dickinson said. But “money is unfeeling and unthinking. It doesn’t hire talent; it doesn’t drive outcomes over process. We are on the hook to maximize the use of those taxpayer dollars.”  

The key, he said, is to create a culture and conditions to best spend new acquisitions money. “It comes down to leadership at the end of the day.”  

Borgonovi said threats are going to continue to evolve for weapons systems, so industry needs to stay flexible, including learning from operational use and making investments in data sets.  

“We’ve been given an opportunity that allows us to fill in the lines,” she said “We have a lot of flexibility to get to the outcome we want.”  

What’s good for a production line is stability; what’s good for the fleet is innovation. How do you balance this? 

Borgonovi said Raytheon has seen “incredible engagement” with the Navy on sharing data from Operation Epic Fury. She said her company’s focus is on having the ability and capacity to meet multiple needs for customers, including design scalability and composable designs. 

Dickinson said the Navy wants to be in an environment where software rather than hardware is driving capability. “It puts us in a much better place to be agile and address threats,” he said.  

What does the industrial base need to look like to support the modern wartime environment? 

Borgonovi believes suppliers and the military need to share data across all companies involved, not just a single contractor. 

Bauer noted the defense industry works differently than the consumer industry. “Just-in-time isn’t the kind of production system we need in missions,” he said, as a wartime environment creates the ability for production surges and opens new pathways to invest in the future. 




Bundle Buy a Welcome Investment, AWIBC Says 

A CH-53E Super Stallion assigned to Marine Medium Tiltrotor Squadron (VMM) 163 (Reinforced), 11th Marine Expeditionary Unit, hovers over the flight deck of San Antonio-class amphibious transport dock ship USS Portland (LPD 27), during flight operations in the Pacific Ocean, April 10, 2026. CREDIT: U.S. Marine Corps | Lance Cpl. Luke Rodriguez 

The Amphibious Warfare Industrial Base Coalition (AWIBC) is a trade coalition of suppliers of systems, components, parts, and services toward the construction and sustainment of the U.S. Navy’s amphibious warfare ships. Recently, Paul Roden, chair of the AWIBC, responded to questions below from Senior Editor Richard R. Burgess.  

Has AWIBC membership increased or decreased over the last year? 

RODEN: The Amphibious Warship Industrial Base Coalition is a robust and growing organization. We continue to see strong interest from suppliers who recognize the importance of a unified voice in advocating for the stability of our nation’s defense industrial base that supports the men and women of our Navy and Marine Corps. 

Is the amphibious warship industrial base in better or worse shape than last year? 

RODEN: We are incredibly grateful for recent funding in support of amphibious warships, including the multi-ship buy for LPD 33, LPD 34 and LPD 35 as well as LHA 10. However, our most recent survey data shows that less than 10% of our suppliers are operating at full capacity due to inconsistent demand signals. As this new funding is placed on contract, it will help rejuvenate production lines and inject much-needed stability into the industrial base. 

With all of the efforts to shore up the shipbuilding workforce, how healthy is the workforce of the suppliers? 

RODEN: The most critical factor in the health of the industrial base workforce is stable and predictable funding. Our survey data shows a direct link between inconsistent demand and the challenge of maintaining a skilled workforce. With a clear and consistent demand signal from the government, we can unlock the full capacity of a domestic industrial base that is 100% committed to delivering the ships our warfighters need. 

How did the well-funded reconciliation law affect the amphibious warfare ship suppliers? 

RODEN: The funding for the bundle buy was a significant and welcome investment. That funding is helping to rejuvenate idle production lines and inject much-needed stability across the amphibious warship industrial base. More than 50% of suppliers agree that the multi-ship buy has added predictability, helping plan for on-time deliveries. It was a crucial investment for the suppliers in our coalition and we are grateful for that support. 

Are you seeing any improvements in amphibious warfare ship construction schedule stability? 

RODEN: While the recent funding was a significant and welcome commitment, true schedule stability can only come from consistent and predictable funding through multi-year appropriations. To the extent that many of our suppliers support new construction across both amphibious ships and other critical naval assets, stable funding benefits the entire shipbuilding industrial base committed to delivering America’s maritime dominance. 




New U.S.-Korean ASV on Track to Be On Water This Fall

An image of a Korean shipbuilder Anduril released upon announcing its teaming with HD Hyundai. Credit: Anduril Industries.

By Vicky Uhland, Seapower Correspondent  

In October, Anduril Industries (Booth 130) is set to debut its first ship in a new class of autonomous surface vessels in collaboration with HD Hyundai and Edison Chouest Offshore. 

Anduril’s 60-meter, 500-plus-ton ASV is aimed the U.S. Navy’s medium unmanned surface vessel (MUSV) program, which focuses on building a distributed, autonomous surface fleet that can nimbly coordinate operations in order to deter threats.  

MUSV is in response to the growing expense of using manned platforms to defend commercial shipping and maintain sea control, said Cory Emmons, Anduril’s general manager of surface dominance.  

Emmons said because of lead-ship building difficulties from legacy production models in the U.S., Anduril chose to partner with Hyundai to cut production time. Anduril is also partnering with Edison Chouest Offshore for U.S. ship production, while Hyundai will mostly build ships for Anduril’s global clients.  

“The U.S. Navy has been clear: Scale is what matters. A single autonomous ship doesn’t move the needle,” according to an Anduril blog. “Commercial shipbuilders are essential to this effort because they already operate at scale, producing large numbers of reliable vessels efficiently, on time and on a disciplined budget.” 

Production on Anduril’s first ASV began in November, and Anduril has been conducting daily at-sea testing of vehicle autonomy, mission autonomy and container payloads on a surrogate vessel using the company’s high-assurance software. “We’re analyzing all potential hazards on the [sea] surface,” Emmons said.  

Along with potential naval applications, Emmons said Anduril’s ASV fleet could be used commercially for sea bed and continental shelf exploration for oil and gas companies. “It’s an emerging market,” he said.  




Launched From Submarines, Trusted by 30 Navies: REMUS Marks 25 Years Beneath the Surface 

From HII 
 

NATIONAL HARBOR, Md., April 20, 2026 (GLOBE NEWSWIRE) — HII (NYSE: HII) today celebrated the 25th anniversary of the REMUS unmanned underwater vehicle (UUV) family during the 2026 Navy League Sea-Air-Space Exposition, marking a quarter century of innovation, reliability and mission versatility that has made REMUS the world’s leading autonomous underwater vehicle platform. 

Originally funded by the Office of Naval Research (ONR) and developed by the Woods Hole Oceanographic Institution (WHOI) in Woods Hole, Massachusetts, REMUS began as a research vehicle designed to advance ocean science and undersea exploration. Over the past 25 years, HII has expanded that pioneering technology into the most widely produced and adopted autonomous unmanned underwater systems in the world, supporting defense, commercial and scientific missions. 

“REMUS has endured for 25 years because it was designed to evolve,” said Duane Fotheringham, president of the Unmanned Systems group in HII’s Mission Technologies division. “Its reliability, modularity, and open architecture allow operators to quickly adapt the platform to new missions while maintaining the performance and trust customers rely on.” 

Today, more than 750 REMUS vehicles have been delivered to over 30 nations. They are currently used by 14 NATO navies, including the U.S., United Kingdom, Norway and Germany, as well as allied partners across the Indo-Pacific. REMUS vehicles support mine countermeasures, intelligence, surveillance and reconnaissance (ISR), and seabed mapping missions. More than 90% of all REMUS systems deployed in the past 25 years remain in active service, a testament to their durability, reliability and lifecycle value. 

Among REMUS’s notable capabilities and recognition: 

  • The REMUS family supports modern naval operations with unmatched reliability. Its autonomous systems enable independent and teamed operations. In a recent breakthrough, REMUS 600 vehicles were successfully launched and recovered from the torpedo tubes of an HII-built U.S. Navy Virginia-class submarine, extending mission reach while reducing exposure risk and enhancing stealth for submarine forces. 

  • REMUS’ open-architecture design enables rapid integration of new payloads as missions evolve, maximizing platform modularity while controlling lifecycle costs. The REMUS product line includes multiple variants designed for specific mission profiles and operating depths. Vehicle designations reflect operational depth capability and generational improvements, from the compact REMUS 130 optimized for shallow-water operations, to the REMUS 6000 designed for deep-sea exploration and recovery operations. REMUS 620, a medium unmanned underwater vehicle (MUUV), features modernized electronics, modular upgrades, and endurance of up to 110 hours with a range of approximately 275 nautical miles. 

  • REMUS vehicles have played critical roles in high-profile global search operations, including the deep-ocean search for Air France Flight 447, post-tsunami maritime surveys in Japan, and the historic discovery of the USS Indianapolis (CA 35) in the Philippine Sea. 

  • Research institutions and environmental organizations continue to rely on REMUS vehicles for oceanographic research, marine archaeology, and ecosystem monitoring. The National Oceanic and Atmospheric Administration (NOAA) is currently deploying REMUS 620 vehicles to map seafloor habitats impacted by the Deepwater Horizon oil spill, while universities and marine laboratories use the systems to conduct long-duration environmental surveys. 

The U.S. Navy’s Lionfish Program 

The U.S. Navy’s current Lionfish UUV is based on HII’s REMUS 300 platform, a modular, open-architecture small unmanned underwater vehicle (SUUV) engineered for multi-mission adaptability. The program was developed in collaboration with the U.S. Navy and the Defense Innovation Unit (DIU) to accelerate the adoption of dual-use commercial technologies in U.S. Department of Defense programs. 

Lionfish has been recognized as the U.S. Navy’s first successful transition from an Other Transaction Authority (OTA) prototype to full-rate production. It is also the first — and currently only — cyber-compliant UUV. 

Strategic Partnerships and Future Capabilities 

HII continues to invest in next-generation capabilities and strategic partnerships that expand how unmanned systems operate across the maritime domain. In a recent initiative, HII and Babcock International Group signed a strategic agreement to integrate REMUS UUVs with Babcock’s submarine weapon handling and launch systems, enabling autonomous launch and recovery of UUVs through submarine torpedo tubes and unlocking new deployment options for allied submarine forces. 

In the U.S. Navy’s future fleet, and together with HII’s ROMULUS unmanned surface vehicle (USV), REMUS systems enable integration of manned and unmanned platforms.




RTX’s Raytheon delivers first Next Generation Jammer shipsets to the Royal Australian Air Force 

Technology will enhance country’s electronic warfare capabilities 

From RTX 

ARLINGTON, V.A. (April 20, 2026) — Raytheon, an RTX (NYSE: RTX) business, has delivered its first Next Generation Jammer (NGJ) pods to the Royal Australian Air Force.  

NGJ is a cooperative development and production program with the Royal Australian Air Force (RAAF). It is an airborne electronic attack system containing active electronically scanned arrays that radiate in the mid-band frequency range. By disrupting enemy radars and communication systems, NGJ enables aircrew to remain undetected while airborne, allowing them to execute their missions with greater safety and effectiveness. 

“This delivery marks a significant milestone in our collaborative efforts with the U.S. Navy and RAAF on NGJ,” said Barbara Borgonovi, president of Naval Power at Raytheon. “This advanced technology will greatly enhance RAAF’s electronic warfare capabilities, safeguarding vital assets on its aircraft and more effectively neutralizing adversary technologies across a wide range of missions.” 

Raytheon has been partnering with the U.S. Navy and RAAF since the inception of the NGJ program. This first delivery of shipsets occurred ahead of schedule in September 2025, with future deliveries continuing through 2026. Raytheon is also providing on-site deployment and maintenance support in Australia to help support operational and mission readiness.




New long-range smart weapon flies hundreds of miles in first test 

The first JDAM LR cruises above the U.S. Navy’s Point Mugu Sea Range, California, on April 1, 2026. (U.S. Navy photo) 

From Chris Bishop at Boeing, April 20, 2026

Boeing, U.S. Navy complete initial flight tests of the JDAM LR, validating powered flight and long-range capability. 

Boeing and U.S. Navy teammates completed a series of flight tests last week for the GBU-75 Joint Direct Attack Munition Long Range (JDAM LR) at the Navy’s Point Mugu Sea Range, California. 

  • JDAM is a low-cost guidance kit that converts existing free-fall bombs into accurately guided smart weapons. JDAM LR adds long-range capability and is the newest in the JDAM family of systems. 

Why it matters: The tests validated the weapon’s ability to operate from an F/A-18 Super Hornet fighter and sustain powered flight of a 500-pound (230-kilogram) JDAM. 

  • Military Code GPS navigation systems on JDAM LR tracked satellites for the entire test, improving the weapon’s resilience and accuracy against GPS jamming and spoofing. 

How they did it: An F/A-18E Super Hornet from China Lake Naval Weapons Station flew to Point Mugu and released an inert JDAM LR. 

  • The first test, on April 1, demonstrated safe separation, engine start, cruise and guidance through terminal flight and impact in water after a 34-minute flight. The weapon sustained powered flight for nearly 200 nautical miles and landed within meters of its planned target.   

  • For the next test, on April 3, teams flew a second planned flight profile, successfully incorporating altitude changes and weapon maneuvering during an otherwise similar flight. 



Maritime Industrial Base in Crisis, New CMS Report Finds

By Matt Reisener 

America’s maritime industrial base (MIB) is in crisis. Decades of deindustrialization, inconsistent policy support, labor attrition and increasingly globalized supply chains have left the United States struggling to produce ships on time and on budget, all while strategic competition at sea intensifies. America’s MIB is unable to support the needs of its Navy, compete with rising naval and shipbuilding powers such as China, or reliably contribute to the protection of America’s most vital national interests in the decades to come.  

However, many of the United States’ maritime allies are experiencing similar challenges to their domestic shipbuilding industries and have adopted creative approaches to solving them. The United States must utilize the experience, knowledge and resources of its allies to develop the best strategy possible for building a stronger, more resilient MIB.  

Accordingly, the Center for Maritime Strategy conducted a study of America’s allied maritime industrial base to examine how five American allies (South Korea, Italy, Canada, Sweden and the United Kingdom) build commercial and naval ships, how they support their shipbuilding industries and what lessons America can learn from its allies about how to revitalize its MIB.  

Each country faces similar shipbuilding challenges to America but has taken a different approach to addressing them. Although South Korea and Italy have successfully maintained strong commercial and naval shipbuilding sectors, Canada and the United Kingdom have largely allowed their commercial sectors to atrophy while primarily focusing on warship construction, while Sweden has seen both sectors significantly diminish and maintains only marginal naval shipbuilding capabilities. Many of America’s allies have successfully maintained strong MIBs by streamlining the process for designing and building ships. Among the countries studied, the most successful nations at sustaining strong commercial and naval shipbuilding industries have found ways to minimize late-stage design changes, build a greater variety of ships based on a common design and establish a shipbuilding culture which emphasizes delivering ships on time and under budget.  

Similarly, the study illustrates how government investments in their MIBs can set their shipbuilding industries up for success, including by training the next generation of skilled tradespeople and supporting greater supply chain resilience. America’s most successful shipbuilding allies have also heavily invested in integrating new technology into their shipyards, fully embracing automation, digitization and artificial intelligence to support their work — often with strong government support for these efforts. 

America can build a stronger, more capable MIB by partnering with and learning from its allies. Accordingly, this study provides recommendations for how America can apply these insights to support its MIB while embracing greater multilateral maritime cooperation.   

CMS and speakers from the allied nations in the report will host a panel discussion on the new report on Tuesday, April 21 from 3:30-4:30 p.m. in the Cherry Blossom Ballroom.  

Read the full report here.




Q&A: Fincantieri Marine Group CEO George Moutafis

Fincantieri Marine Group CEO George Moutafis, right, tours company facilities. (CREDIT: Fincantieri Marine Group)

In February 2026, Fincantieri Marine Group (Booth 1223) issued the following release: 

“As you may have seen in NAVSEA’s press release, the U.S. Navy tapped Fincantieri to build four of the first wave of Medium Landing Ships (LSMs) for the Marine Corps. Our $1B investment over the last 18 years to create concurrent production lines across our Wisconsin system of shipyards has positioned us to be a prime player in the American shipbuilding renaissance. This announcement represents a good start of follow-on workload, part of the framework agreed with the Navy to ensure stability following the announcement in November. Details are still being worked out between us and the Navy, and we will communicate any developments, as soon as they solidify. Our intent is to quickly build as many vessels as the Navy will trust us with, in the LSM class and other classes that our armed forces require, to contribute to our nation’s needs.” 

Fincantieri Marine Group CEO George Moutafis later discussed the LSM program’s vessel construction management (VCM) concept with Senior Editor Richard R. Burgess. 

The Vessel Construction Management concept proved successful with Philly Shipyards and its National Security Multi-Mission Vessel (NSMV) program. What advantages and disadvantages do you see with the VCM concept? 

MOUTAFIS: Advantages: I trust our Navy wants to see whether this mechanism can deliver quality vessels fast, by streamlining oversight and creating unity of effort. Such benefits can be achieved if the concept is applied in its intended form: 

A key aspect is to empower the VCM to make decisions on construction, favoring schedule, without compromising quality and without seeking constant guidance or approval from the Navy. When combined with a complete and final design and a commercial-type relationship between the VCM and shipbuilders, this can be truly powerful and harness efficiency in decision-making and speed. 

So, overall, this concept is aimed at simplifying things. From that vantage point, this approach aligns perfectly with our goal of fast serial production of naval vessels, and we are ready to continue our partnership with the Navy and help them test this concept.   

Disadvantages: More than disadvantages, it will be key for all parties involved (the Navy, the VCM, the shipbuilder(s) to embrace the concept, draw the relevant lines and collectively ensure we do not fall into mishaps of the past that might jeopardize what this concept is trying to achieve. 

 The U.S. Navy has issued a request for proposal for a vessel construction manager to oversee the acquisition of the new Medium Landing Ship. This strategy is designed to maximize commercial practices to accelerate delivery, improve cost discipline, and expand the U.S. shipbuilding industrial base, with a contract award anticipated for mid-2026. (CREDIT: Naval Sea Systems Command

With the VCM chosen as the LSM program management concept, what changes will Marinette have to institute to accommodate the concept? 

MOUTAFIS: We are ready. In Wisconsin we have a system of yards where we have executed successfully programs for our Navy, for our Coast Guard, but also for commercial customers, under a variety of contractual setups.  

We will wait to see the details of how the Navy will position itself towards the program and how the VCM will seek to exercise oversight and work with us. We are ready to adjust to whatever those requirements are. 

At first glance, an oversight and collaboration similar to the one witnessed during the NSMV program and a “build-to-print” design, for now, appear to alleviate some demands in terms of administration and engineering, allowing us to swiftly get into what we do best: swift serial construction … but it all remains to be seen.  

What adjustments, if any, will be needed for your workforce as you shift from LCS production to the LSM? 

MOUTAFIS: Using a “build-to-print” approach allows construction to happen quicker. Plus, it minimizes change and prevents extensive and time-consuming design iterations.   

We will need to review all the technical details, but we do not foresee major adjustments to workforce. Our system-of-yards configuration ensures agility in the workforce, rendering them able to jump from Navy standards to commercial or ABS standards.  

And with the right level of sustained demand signal, we will be able to improve efficiency and speed, which will be a win for all parties. Our system of yards can accommodate multiple parallel lines, almost concurrently. 

How is Marinette fairing with the nationwide shortage of skilled shipyard workers? 

MOUTAFIS: No doubt, shipbuilders and the related trades remain in high demand. We have expanded our recruiting efforts over the previous few years, and we are blessed to say that our efforts worked. Last year alone we hired nearly 800 employees and improved our retention by 50%.   

Our Wisconsin operations saw positive feedback on several new initiatives over the previous 18 months, aimed at stabilizing the workforce. Efforts like cash bonuses to incentivize employee retention and tax-free subsidized childcare had a positive effect on our employees and our operations. 

In years past Marinette had difficulty in retention of shipyard workers because of housing shortages in the region. Has that situation been alleviated to any degree? 

MOUTAFIS: Yes, there has been a concerted effort by the local communities and developers to expand the number of local housing options that closely align to our growing workforce and their families. We believe this is less of an issue given the development and community support over the last couple of years in Northeast Wisconsin.       

Is Marinette continuing with cooperative relationships with community colleges for workforce development? What is your assessment of the cooperation?  

MOUTAFIS: Yes, we are continuing and seeking to expand our network of such collaborations. We have a continuously growing relationship with Northeast Wisconsin Technical College to not only reinforce the need to up-skill current employees, but also to introduce new technologies and digital tools to attract the shipbuilders of the next generation.  

Imagine a not-so-distant future replete with examples of shipyard welders leveraging cobots (collaborative robots) to weld in places where it’s difficult for humans to easily work. That is the future of shipbuilding and why we’re equipping our employees with digital tools like exoskeletons for demanding and repetitive tasks and augmented and virtual reality that allows workers on the deckplates to communicate challenges directly to the engineering team using a wearable digital device.    




Raytheon Doubled ESSM Production in 2025

An Evolved SeaSparrow Missile is launched from a Mk 29 launcher aboard USS Carl Vinson (CVN 70) in 2010. (CREDIT: U.S. Navy | Mass Communication Specialist 3rd Class Patrick Green)

By Richard R. Burgess, Senior Editor 

Raytheon Missiles & Defense (Booth 911) doubled production of the Block II RIM-162 Evolved SeaSparrow Missile (ESSM) in 2025 as it addressed the increased demand from the U.S. Navy and its partners in the NATO consortium, a company official told Seapower

“Last year, we produced over 350 ESSM missiles, which more than doubled what we were able to deliver in 2024,” said Misty Holmes, vice president for the Shipboard Organization within the Naval Power division. Her portfolio includes the ESSM, the Rolling Airframe Missile and the Standard family of surface-to-air missiles. She noted Raytheon delivered the 500th Block II version of the ESSM last September. 

“We’re continuing to increase production this year to deliver over 400 all-up rounds, and we have a North Star in terms of our production capacity to go beyond 700 per year to meet that increased demand signal and service the needs of all of our customers’ navies,” Holmes said. 

The ESSM, which became operational in 2004, is a short-to-medium shipboard surface -to-air missile deployed on several classes on U.S. Navy ships, including many guided-missile destroyers, aircraft carriers and amphibious assault ships. The missile is designed to counter advanced, highly maneuverable threats, and features a warhead specifically designed to defeat hardened anti-ship cruise missiles. In 2007, a surface-to-surface/anti-low-velocity air threat capability was introduced on the missile. The missile was developed by a consortium of 12 NATO nations and has been acquired by Japan through direct commercial sales. 

“I believe that gives ESSM a unique and a distinct advantage in today’s munitions programs over those that are solely developed and managed by one nation,” Holmes said. “The consortium is NATO’s largest and most successful cooperative weapons project, and it’s been together for over 15 years supporting international military industrial cooperation. 

The Block II ESSM, which became operational in 2020, features an active guidance system in addition to semi-active guidance, reducing the need for shipboard radar illumination.  

“This particular capability does come with significant digital processing margin,” Holmes said, “[A]s we are focused on innovation, [we] can continue to upgrade this capability to keep it ahead of pace with the threat to ensure that we’re keeping our ships and our Sailors, both U.S. and international allies, safe and coming home.” 

Recent conflicts in Ukraine and the Red Sea have spurred demand for such weapons as the ESSM, which was fired against Houthi missiles and drones during 2023 and 2024. 

“I do see this as a multi-factor issue, Holmes said. “We are seeing increase in the defense budget across numerous of our customers largely in Europe as well as others due to the threats, the war in Ukraine, the realization of expenditures in the Red Sea and others. So, we are seeing that increased demand signal come in pretty globally.” 

Holmes said Raytheon is focused on the increased demand signal.  

“This production really does showcase exceptional program performance that has been heavily supported by a very robust supply chain that’s been meeting and exceeding targets, and that supply chain is extremely diverse and global, she said. “Our suppliers, in ESSM’s case, are not just suppliers, there are partners, international industrial-based partners. Two areas that have been really big on this production are our industrial partners delivering on their contracts to make all those components ready for integration, and then the dedicated action by the Raytheon factory teams to improve throughput and remain focused on the goal that we have to meet and exceed our production targets. We’ve been working on test efficiencies, optimization and throughput to ensure we can continue to improve on our delivery.” 

Is Raytheon working on a Block III ESSM? Holmes would only say, “We are working on enhanced kinematics and maneuverability, things that will keep this weapon system ahead of the threat for the next few decades. But we’re eager to participate with the U.S. in the consortium in their next significant variant. 

“We don’t sit back and rest on our laurels that what we’ve delivered is good enough,” she said. “We’re constantly adding capability to the suite of capabilities to make sure [that we are] staying ahead of the threat and those are investments we’re making in future ESSM capabilities as well in terms of funding new research and development ahead from government requirements.” 




HII Moves Further into Physical AI for Shipbuilding

 A GrayMatter Robotics technology performs autonomous grinding to an HII foundation project that used internal research and development funds.

By Brett Davis 

Shipbuilding giant HII (Booth 923) has added another artificial intelligence partner to its shipbuilding program, taking another step toward adding “physical AI” to the process of constructing Navy ships. 

In early April, the company announced it signed a memorandum of understanding with Carson, California-based GrayMatter Robotics to explore integrating GMR’s physical AI into shipbuilding operations, including for surface preparation, coating and inspection. 

The companies will identify and potentially pursue future opportunities in four areas that include autonomous shipbuilding capability development; integration of GMR technologies with other shipbuilding technology initiatives; workforce training to extend automation; and acceleration and scaling of unmanned system production.  

“Our shipbuilding throughput was up 14% in 2025 and we are looking for an additional 15% increase in 2026,” said Eric Chewning, HII’s executive vice president of maritime systems and corporate strategy. “By working with new partners like GMR we can further augment our workforce and speed up U.S. Navy shipbuilding production.” 

This follows on to a similar announcement from February, when HII signed an MOU with Ohio-based Path Robotics to incorporate physical AI for welding.  

HII said much of the work that would be pursued by these companies currently is “hands-on and highly skilled,” but AI-driven technologies “offer promising opportunities to support these critical processes by reducing repetitive work and improving consistency to help accelerate delivery timelines and meet the U.S. Navy’s growing demand.” 

Chewning said the introduction of physical AI is just one step of a series of actions HII is taking to improve shipbuilding, from increasing its supplier base to hiring and retaining new workers to making capital investments. 

“And finally, what brings us here today, we are investing in new industry 4.0 technologies like digital engineering, additive manufacturing, enterprise AI and physical AI to drive overall shipyard efficiency,” he told reporters in a call about the announcement. “By working with new physical AI partners like GrayMatter Robotics and integrating them into our high-yield production robotics initiative, or HYPR, we can further augment the AI workforce and speed up the shipbuilding process by bringing automation into more areas of production.” 

So far, shipyard automation remains limited to repeatable activities, where one robot might do a single task 100,000 times, but “there’s a broader set of industrial use cases where we need a single robot to do a hundred thousand tasks just once,” Chewning said. “And that’s where physical AI is a game changer and our partnership with GrayMatter Robotics is so important.” 

Ariyan Kabir, GrayMatter Robotics’ CEO and cofounder, said his company’s technology will help HII do the work it needs at a time when there aren’t enough skilled workers to do it. 

“These are physically brutal tasks,” he told reporters on the press call. “These require incredible precision and we don’t have enough people, skilled people anymore in the U.S. to do these jobs, who are capable of doing these jobs. And that is the problem we solve at GrayMatter Robotics. We build physical AI systems that learn how to perform these skilled manufacturing tasks autonomously — no pre-programmed robots — robots that understand complex material physics and environmental physics, the physics of force friction, contact tool wearing out, temperature and humidity affecting the material behavior, so on and so forth.” 

HII will discuss its physical AI efforts at 1:30 p.m. today at its booth, along with the CEOs of its new physical AI partners.