If you're going to name a class of warships after yourself, you might as well go big. President Donald Trump did exactly that this week, announcing a new fleet of Navy vessels to be built by South Korean shipbuilder Hanwha Ocean at its Philadelphia facility. The market liked what it heard.
Hanwha Ocean shares climbed 12.5% in Seoul trading on Tuesday following the announcement. The company acquired the Philly Shipyard in 2024 and is now pledging $5 billion in investments as part of a wider U.S.-South Korea trade deal. That's real money flowing into American shipbuilding infrastructure.
The 'Trump-Class' Makes Its Debut
Speaking at Mar-a-Lago in Florida, Navy Secretary John Phelan introduced what he called "Trump-class battleships" to the world. The first vessel, the USS Defiant, will reportedly be "the largest, deadliest and most versatile, and best-looking warship anywhere on the world's oceans." Someone's clearly angling for a promotion.
These aren't your grandfather's battleships. We're talking hypersonic weapons, electronic rail guns, high-powered lasers, plus the standard guns and missiles. It's essentially everything short of a Star Destroyer.
Here's how the production will work: Hanwha Ocean will manufacture many of the ship components in South Korea, then ship them to Philadelphia for final assembly. The company currently produces just one vessel annually at its Philadelphia yard. Company executives told CNBC that this arrangement lets them leverage South Korean manufacturing efficiency while maintaining the "Built in America" credentials.
Trump outlined an ambitious timeline: two vessels over the next two years, followed quickly by eight more, eventually scaling to around 20-25 ships total. The push reflects broader Pentagon plans to modernize and expand the U.S. naval fleet, with new frigates and flagships also in the works.
Defense Stocks on Fire
Tuesday's pop wasn't Hanwha Ocean's first rodeo this year. The stock had already rocketed 226% in 2025 before this announcement, driven by surging demand for liquefied natural gas carriers and growing optimism around defense contracts. Shares closed the latest session at KRW 123,400 (roughly $83.30).
The rally fits a broader pattern in South Korean defense stocks. Hanwha Aerospace and Hyundai Rotem have gained over 170% and 270% respectively this year, according to market data. Turns out building weapons systems in an increasingly tense geopolitical environment is good business.
