The U.S. Navy is adjusting its plans for the Constellation-class frigate program,leading to a reduced order for Italian shipbuilding giant Fincantieri Marine Group. The shift comes as the Navy prioritizes modernization and evolving technological needs, impacting a multi-billion dollar contract and causing a slight dip in Fincantieri’s stock price on November 26, 2025. While the initial $5 billion agreement has been revised, a $1 billion compensation package and anticipated future orders aim to mitigate the financial impact.
Fincantieri Marine Group is adjusting its Constellation program with the U.S. Navy, resulting in a reduced order for frigates and a financial impact on the Italian shipbuilding giant. The move comes as the Navy reevaluates its fleet needs and prioritizes technological advancements.
Of the $5 billion in contracts initially agreed upon, $3 billion is now confirmed for the construction of two frigates, which are already underway at Fincantieri Marinette Marine’s Wisconsin shipyard. The company’s stock price reacted negatively to the news, falling 0.91% at the close of trading on November 26, 2025.
The Frigate Program
Table of Contents
According to sources familiar with the matter, the revised agreement includes $1 billion in compensation for the reduced order of four frigates. Fincantieri anticipates recouping the remaining $1 billion through future orders from the U.S. Navy. This adjustment reflects evolving requirements within the Navy, prompting a shift in its long-term strategy.
Fleet Modernization
Fincantieri emphasized the U.S. Navy’s broader fleet modernization initiative, which is focused on “technological excellence, manned and unmanned units, and long-term sustainability.” The company anticipates future orders for smaller vessels, including icebreakers and specialized amphibious and mission-specific ships. This shift reflects the Navy’s evolving priorities in a changing geopolitical landscape.
Executive Commentary
“As the Navy prepares for new types of units, we are ready to support its evolving needs, leveraging the strength of our American facilities and the experience we have gained,” said George Moutafis, CEO of Fincantieri Marine Group. “Our investments in U.S. shipyards demonstrate our long-term vision: to be a benchmark for the American naval industry and an engine for supporting the revival of national shipbuilding.”
Equita’s Analysis
Analysts at Equita noted that the Constellation program’s restructuring “reduces the risk associated” with a complex program that “has experienced significant delays in recent years (mainly due to design revisions by the U.S. Navy) with uncertainties about the profitability of the contracts.” The report also “confirms the strength of the relationship between Fincantieri and the U.S. Navy, thanks to Fincantieri’s strong industrial presence in the United States.”
November 26, 2025 (modified November 26, 2025 | 17:55)
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