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Is Shipyard AI BigBear's Next Growth Driver Amid OB3 Shipbuilding Push?
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Key Takeaways
{\"0\":\"BigBear.ai is positioning Shipyard AI to capitalize on OB3\'s $29B shipbuilding investment.\",\"1\":\"BBAI posted Q2 revenues of $32.5M and cut its 2025 guidance amid Army contract disruptions.\",\"2\":\"BBAI shares rose 57% in 3 months, driven by defense exposure and strong cash reserves.\"}
BigBear.ai Holdings, Inc. (BBAI - Free Report) is positioning itself at the intersection of artificial intelligence and defense modernization, with Shipyard AI emerging as a potential growth catalyst. The timing is critical. The recently passed One Big Beautiful Bill (“OB3”) earmarks $29 billion for domestic shipbuilding, an allocation that aligns directly with BigBear.ai’s AI-driven supply chain and logistics platform.
Shipyard AI is designed to optimize industrial base operations, bringing predictive analytics and process automation to a sector historically challenged by inefficiency and cost overruns. By integrating AI into shipbuilding, BigBear.ai aims to reduce bottlenecks, improve resource allocation, and enhance collaboration across contractors and suppliers. Such capabilities could make Shipyard AI indispensable as OB3 accelerates procurement and expands naval infrastructure.
Financially, BigBear.ai is still contending with near-term headwinds. The second-quarter 2025 revenues fell to $32.5 million, down $7.3 million year over year, while adjusted EBITDA slipped to negative $8.5 million. Contract disruptions with the U.S. Army also pressured guidance, now lowered to $125-$140 million in revenues for the year. Yet, management emphasizes a record $391 million cash balance, giving the company the flexibility to scale organically and through targeted M&A.
The question for investors is whether Shipyard AI can seize OB3-backed opportunities quickly enough to offset revenue volatility. With strong alignment to federal priorities and early proof of concept, Shipyard AI could help reposition BigBear.ai as a beneficiary of generational defense investment, though execution risk remains high.
Competing Against AI Defense Peers
While BigBear.ai is advancing Shipyard AI to capture OB3 shipbuilding opportunities, it faces stiff competition from C3.ai (AI - Free Report) and Palantir Technologies (PLTR - Free Report) . Both players have already established themselves in AI-driven defense and logistics applications.
C3.ai brings scale with its enterprise AI suite, which supports predictive maintenance, fleet readiness and energy optimization — capabilities directly relevant to shipbuilding modernization. Investors view C3.ai as a formidable peer, especially given its broad government contracts and relationships across defense agencies.
Palantir leverages its Foundry and Gotham platforms to provide data integration and real-time analytics. Palantir has deep ties with the Department of Defense and Navy, putting it in strong contention for OB3-related shipbuilding projects. Palantir also benefits from consistent revenue visibility through multi-year government agreements.
Against such entrenched rivals, BigBear.ai’s challenge is differentiation. Shipyard AI’s specialized logistics focus may give BBAI an edge, but C3.ai and Palantir remain formidable benchmarks.
BBAI’s Price Performance, Valuation and Estimates
Shares of the company have gained 57% in the past three months, outperforming the Zacks Computers - IT Services industry, the Zacks Computer and Technology sector and the S&P 500 Index. A key driver of the rally is BigBear.ai’s expanding footprint in U.S. defense and homeland security.
BBAI Price Performance
Image Source: Zacks Investment Research
In terms of its forward 12-month price-to-sales ratio, BBAI stock is trading at 14.63, down from the industry’s 17.29. The stock trades at a discount relative to its long-term potential, supported by unmatched cash reserves, direct exposure to historic AI and defense spending, and strengthening international partnerships.
BBAI’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
Over the past 60 days, the Zacks Consensus Estimate for BBAI’s 2025 loss per share has widened to $1.10 from 41 cents. The company had reported the same in the year-ago period.
Image: Bigstock
Is Shipyard AI BigBear's Next Growth Driver Amid OB3 Shipbuilding Push?
Key Takeaways
BigBear.ai Holdings, Inc. (BBAI - Free Report) is positioning itself at the intersection of artificial intelligence and defense modernization, with Shipyard AI emerging as a potential growth catalyst. The timing is critical. The recently passed One Big Beautiful Bill (“OB3”) earmarks $29 billion for domestic shipbuilding, an allocation that aligns directly with BigBear.ai’s AI-driven supply chain and logistics platform.
Shipyard AI is designed to optimize industrial base operations, bringing predictive analytics and process automation to a sector historically challenged by inefficiency and cost overruns. By integrating AI into shipbuilding, BigBear.ai aims to reduce bottlenecks, improve resource allocation, and enhance collaboration across contractors and suppliers. Such capabilities could make Shipyard AI indispensable as OB3 accelerates procurement and expands naval infrastructure.
Financially, BigBear.ai is still contending with near-term headwinds. The second-quarter 2025 revenues fell to $32.5 million, down $7.3 million year over year, while adjusted EBITDA slipped to negative $8.5 million. Contract disruptions with the U.S. Army also pressured guidance, now lowered to $125-$140 million in revenues for the year. Yet, management emphasizes a record $391 million cash balance, giving the company the flexibility to scale organically and through targeted M&A.
The question for investors is whether Shipyard AI can seize OB3-backed opportunities quickly enough to offset revenue volatility. With strong alignment to federal priorities and early proof of concept, Shipyard AI could help reposition BigBear.ai as a beneficiary of generational defense investment, though execution risk remains high.
Competing Against AI Defense Peers
While BigBear.ai is advancing Shipyard AI to capture OB3 shipbuilding opportunities, it faces stiff competition from C3.ai (AI - Free Report) and Palantir Technologies (PLTR - Free Report) . Both players have already established themselves in AI-driven defense and logistics applications.
C3.ai brings scale with its enterprise AI suite, which supports predictive maintenance, fleet readiness and energy optimization — capabilities directly relevant to shipbuilding modernization. Investors view C3.ai as a formidable peer, especially given its broad government contracts and relationships across defense agencies.
Palantir leverages its Foundry and Gotham platforms to provide data integration and real-time analytics. Palantir has deep ties with the Department of Defense and Navy, putting it in strong contention for OB3-related shipbuilding projects. Palantir also benefits from consistent revenue visibility through multi-year government agreements.
Against such entrenched rivals, BigBear.ai’s challenge is differentiation. Shipyard AI’s specialized logistics focus may give BBAI an edge, but C3.ai and Palantir remain formidable benchmarks.
BBAI’s Price Performance, Valuation and Estimates
Shares of the company have gained 57% in the past three months, outperforming the Zacks Computers - IT Services industry, the Zacks Computer and Technology sector and the S&P 500 Index. A key driver of the rally is BigBear.ai’s expanding footprint in U.S. defense and homeland security.
BBAI Price Performance
Image Source: Zacks Investment Research
In terms of its forward 12-month price-to-sales ratio, BBAI stock is trading at 14.63, down from the industry’s 17.29. The stock trades at a discount relative to its long-term potential, supported by unmatched cash reserves, direct exposure to historic AI and defense spending, and strengthening international partnerships.
BBAI’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
Over the past 60 days, the Zacks Consensus Estimate for BBAI’s 2025 loss per share has widened to $1.10 from 41 cents. The company had reported the same in the year-ago period.
Image Source: Zacks Investment Research
BBAI stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.