Core Insights - HII's Mission Technologies division has been awarded a task order valued at approximately $70 million by the U.S. Air Force to enhance the security of its systems and software [1][2]. Group 1: Contract Details - The task order spans five years and involves identifying and mitigating vulnerabilities to protect U.S. Air Force systems from unauthorized access and destruction [2]. - The work will be conducted primarily at Hanscom Air Force Base in Bedford, Massachusetts [5]. Group 2: Strategic Importance - Proactive defense is emphasized as critical for the secure operation and communication of U.S. Air Force systems, with a commitment to enhancing resiliency and cybersecurity [3]. - Effective cybersecurity measures are highlighted as essential for mission success, with a focus on developing solutions that adapt to evolving threats [4]. Group 3: Organizational Background - HII is recognized as the nation's largest military shipbuilder, with a history of over 135 years in advancing U.S. national security [6][7]. - The company employs a workforce of 44,000 and provides a range of capabilities, including ships, unmanned systems, cyber solutions, and artificial intelligence [7].

Core Viewpoint - Huntington Ingalls (HII) stock has faced significant losses due to a missed earnings report, but recent analyst support suggests potential recovery [1][2][3]. Group 1: Stock Performance - HII shares experienced an 18% decline in the first week of February following a Q4 2024 earnings miss [1]. - The stock briefly rebounded but remained around the $160 level until a recent uptick of approximately 5% after Citigroup's note [2]. Group 2: Analyst Insights - Citigroup has lowered its price target for HII to $235 per share while maintaining a "buy" rating [3]. - The lack of detailed reasoning from Citigroup leaves investors to assess the stock's potential independently [3]. Group 3: Financial Metrics - HII's revenue grew less than 1% in 2024, totaling $11.5 billion, indicating stalled sales [3]. - The stock is valued at approximately 0.55 times trailing sales, which is historically low for a defense stock, despite having $2.6 billion in net debt [4]. - The enterprise value-to-sales ratio is less than 0.8x, and the P/E ratio stands at 11.5, with a projected long-term earnings growth rate of 11% [4]. - HII offers a dividend yield of 3.3%, although it faces challenges with weak free cash flow [4][5].

NEWPORT NEWS, Va., Feb. 12, 2025 (GLOBE NEWSWIRE) -- HII (NYSE: HII) will participate in Citi’s Global Industrial Tech and Mobility Conference on Feb. 18. A conversation with HII President and CEO Chris Kastner will begin at 7:10 a.m. Eastern time and will be webcast on ir.hii.com. About HII HII is a global, all-domain defense provider. HII’s mission is to deliver the world’s most powerful ships and all-domain solutions in service of the nation, creating the advantage for our customers to protect peace and ...

NEWPORT NEWS, Va., Feb. 12, 2025 (GLOBE NEWSWIRE) -- HII (NYSE:HII) will participate in Citi's Global Industrial Tech and Mobility Conference on Feb. 18. A conversation with HII President and CEO Chris Kastner will begin at 7:10 a.m. Eastern time and will be webcast on ir.hii.com. About HII HII is a global, all-domain defense provider. HII's mission is to deliver the world's most powerful ships and all-domain solutions in service of the nation, creating the advantage for our customers to protect peace and f ...

Huntington Ingalls Industries (NYSE: HII ) is a defense contractor and the leading naval shipbuilder. Its competitive advantages include an effective monopoly in specific ship classes, scale, a classified workforce, and technical expertise. The company is undervalued, the dividend yield is the highest in aI am a self-taught individual investor and I have been investing in stocks for over 25 years. I focus on dividend growth investing with a long-term horizon since I believe in the compounding power of divid ...

Group 1 - The article discusses the investment opportunities in the aerospace, defense, and airline industry, highlighting the role of data analytics in identifying these opportunities [1] - Huntington Ingalls Industries (NYSE: HII) was previously rated as a buy after a significant drop in stock price following its earnings report [1] - The investing group, The Aerospace Forum, aims to provide insights and analysis on developments in the aerospace sector, emphasizing the industry's growth prospects [1] Group 2 - The article emphasizes that past performance does not guarantee future results, indicating a cautious approach to investment recommendations [2] - It clarifies that the views expressed may not reflect those of Seeking Alpha as a whole, highlighting the diversity of opinions among analysts [2] - The article notes that analysts may not be licensed or certified, which could impact the reliability of the investment insights provided [2]

PASCAGOULA, Miss., Feb. 07, 2025 (GLOBE NEWSWIRE) -- HII's (NYSE:HII) Ingalls Shipbuilding division awarded $95,600 in STEM grants today to 22 local schools and educational organizations, reinforcing the company's commitment to fostering innovation and critical thinking among youth. The grants will support a variety of hands-on projects, classroom technology enhancements, and STEM-focused curriculums. "STEM education isn't just about learning formulas or theories — it's about hands-on experiences that inspi ...

PASCAGOULA, Miss., Feb. 07, 2025 (GLOBE NEWSWIRE) -- HII’s (NYSE: HII) Ingalls Shipbuilding division awarded $95,600 in STEM grants today to 22 local schools and educational organizations, reinforcing the company’s commitment to fostering innovation and critical thinking among youth. The grants will support a variety of hands-on projects, classroom technology enhancements, and STEM-focused curriculums. “STEM education isn’t just about learning formulas or theories — it’s about hands-on experiences that insp ...

Financial Data and Key Metrics Changes - In Q4 2024, consolidated revenues were $3 billion, a decrease of approximately 5% year-over-year, driven by lower revenues across all segments [31] - For the full year 2024, revenues totaled $11.5 billion, an increase of $81 million or approximately 1% compared to 2023, primarily due to higher volumes at Mission Technologies [37] - Net earnings for Q4 2024 were $123 million, down from $274 million in the same quarter last year, with diluted earnings per share at $3.15 compared to $6.90 [36] - Full-year net earnings were $550 million, compared to $681 million in 2023, with diluted earnings per share at $13.96, down from $17.07 [44] Business Line Data and Key Metrics Changes - Mission Technologies achieved revenues of $713 million in Q4 2024, a decrease of 4.3% year-over-year, primarily due to lower volumes in C5ISR [32] - For the full year, Mission Technologies revenues were $2.9 billion, an increase of 8.8% from 2023, driven by higher volumes in cyber, electronic warfare, and space contracts [38] - Ingalls revenues for 2024 were $2.8 billion, a slight increase of 0.5% from 2023, while Newport News revenues decreased by 2.7% to $6 billion [38] Market Data and Key Metrics Changes - The year-end backlog was $49 billion, with $27 billion funded, and 2024 contract awards totaled $12 billion [10] - The company expects to secure over $50 billion in contract awards over the next 24 months, indicating strong demand for its products and services [6][28] Company Strategy and Development Direction - The company aims to grow to $15 billion in annual revenue by 2030, with associated margin expansion and free cash flow growth [9] - Operational initiatives include a target of $250 million in annual cost reductions and a focus on increasing throughput and workforce stability [22][21] - The company plans to increase outsourcing by 30% in 2025 to address critical skill gaps within its shipyards [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving historical margin levels of 9% to 10% in the future, citing ongoing negotiations for new contracts that include inflation protection [66][68] - The company anticipates that the majority of its revenue by 2027 will come from contracts reflecting the current operating environment, which should facilitate margin improvement [52] Other Important Information - The company completed significant milestones in shipbuilding, including the delivery of submarines and aircraft carriers, and expects to deliver five ships over the next two years [28] - The Defense Authorization Act for fiscal year 2025 supports the company's shipbuilding programs, authorizing funding for multiple vessels [26] Q&A Session Summary Question: Margin outlook and inflation impact - Management acknowledged the challenges of inflation on margins but expressed belief that achieving 9% margins is possible with new contracts that include inflation protection [60][66] Question: Contract awards and guidance assumptions - The guidance assumes contract awards for FY24 and negotiations for Block 5 and Columbia contracts, with confidence in securing these contracts [76][81] Question: Lessons from past performance and EAC improvements - Management highlighted the importance of transparency and accurate cost estimates in negotiations, with expectations for improved profitability as pre-COVID contracts are phased out [88][99] Question: Shipbuilding margin guidance - Management indicated that the guidance reflects a conservative approach, considering recent negative adjustments, but expects gradual improvements in margins over time [155][156] Question: Hiring plans and shipyard capacity - The company plans to maintain hiring levels while focusing on experienced personnel, with no immediate plans to acquire additional shipyards [120][123] Question: Free cash flow expectations - Management expects free cash flow to improve as pre-COVID contracts run off, with a return to more normalized levels anticipated in the coming years [129][132]

Military shipbuilder Huntington Ingalls (HII -16.84%) missed quarterly expectations, and its issues are likely to continue into the new year.Shares of Huntington Ingalls traded down 17% as of 11:15 a.m. ET, as investors see little reason to get excited about the stock right now.It's tough to turn a battleshipHuntington Ingalls is one of two major shipbuilders for the military, and its massive Newport News, Virginia, shipyard is responsible for producing the nation's aircraft carriers and other important ves ...