HII (NYSE: HII) has signed long-term performance-based production agreements with Path Robotics and GrayMatter Robotics, under which HII intends to award up to $900 million in shipbuilding work over seven years, according to a company press release.

The agreements are part of HII's High-Yield Production Robotics (HYPR) program and are aimed at deploying automated systems across U.S. Navy shipbuilding programs, including aircraft carriers, submarines, destroyers, amphibious ships, frigates, and unmanned surface vessels.

The total value of the agreements is contingent on Path Robotics and GrayMatter Robotics meeting defined technology, manufacturing readiness, and performance milestones. The deal is structured in two stages: a development stage, in which the companies will validate autonomous welding, grinding, blasting, painting, assembly, and inspection processes; and a delivery stage, in which HII will begin sourcing shipbuilding work through the new production line if cost, schedule, and quality targets are met.

The delivery stage is designed to begin with small steel structures and expand to include larger units and modules, supplementing HII's existing distributed shipbuilding strategy.

HII said it plans to outsource more than 2.5 million hours of shipbuilding work in 2026, a 30% increase from 2025, as part of an effort to expand its structural assembly network.

"We are committed to making generational investments to develop new shipbuilding capability and to expand capacity," said Eric Chewning, executive vice president of maritime systems and corporate strategy at HII.

Path Robotics, founded in 2018, has raised more than $370 million to develop AI-driven welding systems. GrayMatter Robotics, founded in 2020 and headquartered in Carson, California, focuses on autonomous surface preparation, coating, and inspection processes for defense and industrial customers.