Huntington Ingalls reported a better-than-expected quarterly earnings on Thursday, on the back of demand for aircraft carriers, amphibious assault ships and submarines amid high geopolitical tension. WHY IT IS IMPORTANT Demand for submarines and aircraft carriers is surging, fueled by China's expanding naval footprint and high global tensions, benefiting shipbuilding giants such as Huntington Ingalls. CONTEXT Huntington is the only major pure-play defense company that has outperformed S&P 500 index, helped by a well-supported navy shipbuilding budget, including inflation-related price increases.