The marine tech industry is riding high on a wave of innovation, with breakthroughs in subsea technology driving its rapid growth. Thanks to advances in sensor technologies, the Internet of Things (IoT), and artificial intelligence (AI), the sector is evolving at a pace that catches the eye of investors eager to ride the tide of opportunity.
Amid this backdrop, stocks of Teledyne Technologies Incorporated (TDY), Huntington Ingalls Industries, Inc. (HII), and Oceaneering International, Inc. (OII) offer strong potential. They are well-positioned to lead the charge in modernizing ocean industries, bringing stability and growth to investors in the process. Let us discuss this in detail.
Marine technology has taken a giant leap with advancements in remotely operated vehicles (ROVs), manned submersibles, unmanned surface vehicles (USVs), and unmanned undersea vehicles (UUVs). The development of next-gen GPS systems for marine travel also plays a pivotal role, contributing to the expansion of the sector.
Adding another layer of transformation, electric boats have emerged as the latest innovation in the marine tech world. Fueled by sustainability and innovation, these battery-powered vessels are shaking up the norms of marine travel. The electric boat market is expected to soar to $16.60 billion by 2031, making it an area full of potential.
Technologies like IoT, machine learning, and AI are set to revolutionize the maritime industry further. By boosting efficiency and reducing costs across a maritime asset’s lifecycle, these technologies also hold the key to enabling autonomous and remote-controlled functions, taking marine operations to new heights of optimization.
Looking ahead, the marine electronics market is projected to reach a robust $7.74 billion by 2030, growing at a solid CAGR of 5%. This growth signals the vast potential within the marine tech sector, where new innovations and opportunities will continue to emerge, making it a prime space for forward-thinking investors.
So. let us dive deep into the fundamentals of three marine tech stocks, starting with #3.
Stock #3: Teledyne Technologies Incorporated (TDY)
TDY provides enabling technologies for industrial growth markets like factory automation, air and water quality environmental monitoring, electronics design and development, and others. The company also offers sensors, cameras, monitoring and control instruments for marine, environmental operations and more.
On November 6, TDY announced an agreement to acquire select aerospace and defense electronics businesses from Excelitas Technologies Corp. for a transaction value of $710 million. With this acquisition, TDY is set to benefit from Excelitas’ portfolio of products and boost its income streams.
On November 4, TDY and Micropac Industries, Inc. (MPAD) announced a definitive merger agreement. MPAD will merge with a wholly-owned TDY subsidiary. MPAD's complementary products and shared customer base in defense, space, and healthcare markets could strengthen TDY's capabilities, enhancing value and opportunities within these critical sectors.
For the fiscal 2024 third quarter that ended September 29, TDY’s net sales increased 2.9% year-over-year to $1.44 billion. Its operating income rose 2.4% from the year-ago value to $270.70 million. Additionally, non-GAAP net income attributable to TDY came in at $241.30 million, while non-GAAP EPS grew 1% from the prior year’s quarter to $5.10.
Analysts expect TDY’s revenue and EPS for the fiscal year ending December 2025 to increase 5% and 4.8% year-over-year to $5.90 billion and $18.26, respectively. Moreover, the company topped the consensus EPS estimates in three of four trailing quarters.
Shares of TDY have surged 12.3% over the past three months and 17% over the past year, closing the last trading session at $473.55.
TDY’s POWR Ratings mirror its sound fundamentals. The stock has an overall rating of B, translating to a Buy in our proprietary rating system. The POWR Ratings are calculated by taking into account 118 different factors, with each factor weighted to an optimal degree.
TDY has a B grade for Momentum, Stability, Sentiment, and Quality. Within the Technology - Electronics industry, TDY is ranked #7 out of 41 stocks.
In addition to the POWR Ratings highlighted above, you can check TDY’s ratings for Growth and Value here.
Stock #2: Huntington Ingalls Industries, Inc. (HII)
HII designs, builds, and repairs military ships. Its segments include Ingalls; Newport News; and Mission Technologies. The company delivers nuclear-powered ships like aircraft carriers and submarines, provides naval nuclear support services, and offers additional services to the U.S. Navy and U.S. Coast Guard.
On December 5, HII secured a $6.7 billion contract to deliver electronic warfare engineering and technical services to the U.S. Air Force. This indefinite-delivery/indefinite quantity contract marks the largest award ever for HII’s Mission Technologies division, significantly boosting its role in advanced defense capabilities.
On December 4, HII announced a definitive agreement to acquire the assets of W International SC, LLC and Vivid Empire SC, LLC, a South Carolina-based complex metal fabricator specializing in shipbuilding structures, modules, and assemblies. The investment enhances HII’s capacity to meet increased Navy build rates efficiently.
For the fiscal third quarter that ended September 30, 2024, HII’s sales and service revenues came in at $2.75 billion. Its operating income was reported to be $82 million. Moreover, the company’s net earnings and EPS amounted to $101 million and $2.56, respectively.
Street expects HII’s revenue and EPS for the fiscal year ending December 2025 to increase 3.9% and 10.6% year-over-year to $12.04 billion and $15.85, respectively. In addition, the company topped the consensus revenue and EPS estimates in three of four trailing quarters.
HII’s shares have marginally declined intraday to close the last trading session at $187.95.
HII’s prospects are projected in its POWR Ratings. The stock has an A grade for Value and a B for Momentum.
Within the Air/Defense Services industry, HII is ranked #40 out of 72 stocks. Click here to access HII’s ratings for Quality, Growth, Sentiment, and Stability.
Stock #1: Oceaneering International, Inc. (OII)
OII delivers engineered services, products, and robotic solutions across offshore energy, defense, aerospace, manufacturing, and entertainment industries. Its segments are Subsea Robotics; Manufactured Products; Offshore Projects Group; Integrity Management & Digital Solutions; and Aerospace and Defense Technologies.
On October 29, OII announced its acquisition of UK-based Global Design Innovation Ltd. (GDI), a leader in digital and software services. The strategic move enhances OII's digital expertise, enabling it to offer broader, more advanced solutions. This positions the company for stronger growth and expanded opportunities with global clients.
On October 1, OII announced a multi-million dollar contract from the U.S. Department of Defense’s Defense Innovation Unit (DIU). Its Subsea Robotics and Aerospace and Defense Technologies segments will develop a Freedom™ Autonomous Underwater Vehicle (AUV) and establish an Onshore Remote Operations Center (OROC) for the U.S. Navy. This contract is expected to strengthen OII’s role in advancing defense innovation.
For the fiscal 2024 third quarter that ended September 30, OII’s revenue increased 7% year-over-year to $679.81 million. Its adjusted EBITDA rose 16.6% from the year-ago value to $98.09 million. Plus, the company’s adjusted net income and adjusted EPS came in at $37.23 million and $0.36, respectively.
The consensus revenue and EPS estimates of $680.61 million and $0.41 for the fiscal fourth quarter ending December 2024 exhibit a year-over-year rise of 4% and 115.8%, respectively. Furthermore, the company surpassed the consensus revenue estimates in three of four trailing quarters.
Shares of OII have surged 28.6% over the past six months and 41.2% over the past year to close the last trading session at $27.09.
OII’s prospects are apparent in its POWR Ratings. It has a B grade for Growth.
The stock is ranked #21 out of 53 stocks in the Energy - Services industry.
Click here to access its Momentum, Value, Quality, Sentiment, and Stability ratings.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today’s volatile markets:
3 Stocks to DOUBLE This Year >
TDY shares were unchanged in premarket trading Monday. Year-to-date, TDY has gained 6.11%, versus a 29.08% rise in the benchmark S&P 500 index during the same period.
About the Author: Aanchal Sugandh
Aanchal's passion for financial markets drives her work as an investment analyst and journalist. She earned her bachelor's degree in finance and is pursuing the CFA program. She is proficient at assessing the long-term prospects of stocks with her fundamental analysis skills. Her goal is to help investors build portfolios with sustainable returns.
3 Marine Tech Stocks Modernizing Ocean Industries StockNews.com
