(Reuters) -U.S. military shipbuilder Huntington Ingalls reported a fall in first-quarter profit and revenue, weighed down in part by a continued slowdown at its facility that makes aircraft carriers for the Navy.

Though demand for submarines and aircraft carriers has remained strong, fueled by China's expanding naval footprint and high global tensions, Huntington Ingalls has been lagging in output due to persistent problems in retaining shipyard labor.

Huntington said in February it aims to increase outsourcing by 30% in 2025 to ease skill gaps within its shipyards.

Ingalls Shipbuilding, one of Huntington's shipbuilding units, saw a slowdown in volume for its assault ships, prompting a 2.7% fall in revenue.

Companies such as Huntington, however, are expected to receive a boost as President Donald Trump pushes to revitalize American shipbuilding through higher spending in the sector.

For the first quarter, Huntington's per-share profit was $3.79 on a net income of $149 million, lower than the $3.87 or $153 million it reported a year earlier.

Its sales and services revenue declined 2.5% to $2.73 billion, below expectations of $2.79 billion per data compiled by LSEG.

Huntington reaffirmed its full-year outlook and said it continues to expect shipbuilding revenue between $8.9 billion and $9.1 billion in 2025.