Navy Awards Hanwha $269 Million Landing Ship Contract at Philadelphia Yard

In late October 2026, the U.S. Navy and U.S. Marine Corps awarded Hanwha Defense USA a $269 million contract to build a medium landing ship (LSM) at Hanwha Philly Shipyard in Philadelphia. The contract includes options for three additional vessels. Construction is scheduled to begin in the fourth quarter of 2027, and the first vessel in the broader program is expected in 2030. The award is notable as Hanwha Defense USA’s first U.S. Navy shipbuilding contract and as a demonstration of a foreign-owned company performing naval ship construction at a U.S. yard, rather than building the ship overseas.

The award resulted from a competitive process managed by Tote Services, which oversees vessel construction under a separate $2.2 billion contract supporting the Navy’s planned 35-ship LSM fleet. That distinction matters to prospective suppliers: the Hanwha award establishes a specific production opportunity, while the larger Tote Services arrangement provides program context and should not be mistaken for the value of this individual ship contract. The three options could extend the work at the Philadelphia yard if exercised, creating potential follow-on demand for shipyard labor, materials, equipment, and other production support. The source does not identify a schedule or a separate award for those optional vessels.

For industry, the contract offers a concrete example of allied shipbuilding capability being brought into a domestic industrial facility. Hanwha acquired Philly Shipyard in 2024, and company president and CEO Michael Coulter said the company had made “significant investments in its workforce and technology to pave the way to build ships for the U.S. Navy and other federal customers.” The source emphasizes that the vessel will be built by American workers on American soil and that no waiver was needed for this arrangement. Shipbuilders and suppliers can therefore assess potential work connected to domestic production, while recognizing that the award alone does not establish which subcontractors will participate or guarantee that the options will be exercised.

The contract arrives amid a broader policy dispute over how the United States should expand shipbuilding capacity and whether foreign shipyards should be permitted to build U.S. vessels. Congressional negotiations over eligibility and conditions could affect future sourcing strategies and the structure of later procurements. Separately, the Navy’s frigate assessment is due November 12, 2026, six days after the current date; no frigate award or formal competition has been announced. The assessment may inform future procurement activity, but it is not itself a solicitation or an award. Contractors should distinguish this prospective planning signal from the awarded LSM work and avoid treating policy discussions or an assessment deadline as an open bidding opportunity.

• Award: Hanwha Defense USA received a $269 million contract for one medium landing ship for the Navy and Marine Corps.
• Production location: The ship will be built at Hanwha Philly Shipyard in Philadelphia, with construction scheduled to begin in Q4 2027.
• Options: The contract includes options for three additional vessels; their exercise and production timing are not specified in the source.
• Program context: Tote Services manages construction under a separate $2.2 billion contract supporting a planned 35-ship LSM fleet.
• Milestone: The first vessel in the broader program is expected in 2030; that program-level milestone is distinct from the start of construction on this contract.
• Supplier implications: Companies may evaluate domestic production support opportunities, but the source names no selected subcontractors or specific supplier awards.
• Frigate planning signal: The Navy’s frigate assessment is due November 12, 2026. It is not a solicitation, competition announcement, or award.
• Policy risk: Congressional negotiations over foreign shipyard eligibility and associated conditions could influence future naval shipbuilding sourcing and procurement requirements.
• Company context: Hanwha acquired Philly Shipyard in 2024 and says it has invested in workforce and technology to support U.S. Navy and other federal shipbuilding work.