Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________________ Delaware 90-0607005 (I.R.S. Employer Identification No.) FORM 10-Q ______________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ...

Huntington Ingalls Industries, Inc. (NYSE:HII) Q4 2022 Earnings Conference Call February 9, 2023 9:00 AM ET Company Participants Christie Thomas - Vice President, Investor Relations Chris Kastner - President and CEO Tom Stiehle - Executive Vice President and CFO Conference Call Participants Myles Walton - Wolfe Research Robert Spingarn - Melius Research Scott Deuschle - Credit Suisse Pete Skibitski - Alembic Global David Strauss - Barclays Doug Harned - AllianceBernstein George Shapiro - Shapiro Research Se ...

CASH FLOW GENERATION ($M) SHAREHOLDER DISTRIBUTIONS ($M) Dividends Share Repurchases (at cost) Cash from Ops. CAPEX Free Cash Flow long-term historical CAGR due to continued labor pressure • Cash balance of $467 million and liquidity of $2.0 billion at year-end 2022 Tom Stiehle Executive Vice President and Chief Financial Officer HII Q4 & FY 2022 Highlights HII Q4 2022 Earnings February 9, 2023 Statements in this presentation, other than statements of historical fact, constitute "forward-looking statements" ...

Financial Performance and Backlog - Total backlog as of December 31, 2022 was $47.1 billion, including $22.2 billion in funded backlog[90] - The company's cash from operations was reduced by $102 million in 2022 due to changes in the Tax Cuts and Jobs Act of 2017, which eliminated the immediate deduction of research and development expenditures[154] - The company estimates a further reduction of $82 million in 2023 cash from operations due to the same tax law changes[154] Debt and Borrowing Capacity - The company had $2.6 billion of debt under senior notes, $225 million under a 3-year term loan, $105 million in revenue bonds, and $1.5 billion of additional borrowing capacity under a revolving credit facility as of December 31, 2022[101] - The company has a $650 million Term Loan, $1.5 billion Revolving Credit Facility, and a $1 billion commercial paper program, with $225 million outstanding on the Term Loan as of December 31, 2022[357] - A 1% increase in interest rates would increase the company's annual interest expense by approximately $2 million based on the Term Loan's outstanding amount[357] Contract Types and Revenue Distribution - Approximately 50% of 2022 revenues were generated under fixed-price incentive contracts, 44% under cost-type contracts, 3% under time and material contracts, and 3% under firm fixed-price contracts[106] Competition and Market Position - The U.S. Navy fleet size decreased from 566 ships in 1989 to 293 ships as of December 31, 2022, leading to increased competition in shipbuilding[94] - The company faces competition from five major private U.S. shipyards, two of which it owns, and smaller shipyards for naval vessel contracts[94] - The company is the only current provider of nuclear-powered aircraft carrier refueling, but U.S. Government shipyards could potentially enter this market with significant investments[96] - The company competes with major defense contractors like Lockheed Martin, General Dynamics, Northrop Grumman, Raytheon, and Boeing in certain contracts[98] Interest Rate and Inflation Risks - The company's variable rate indebtedness is transitioning from LIBOR to SOFR, which may potentially increase borrowing costs[103] - The company faces inflation risks, particularly in raw materials, components, and supplies, which could impact long-term cost assumptions and financial performance[358] - The company mitigates inflation risks through long-term supplier agreements and price escalation provisions in customer contracts[358] Supply Chain and Subcontractor Risks - The company relies on third-party suppliers and subcontractors for raw materials, components, and services, with potential risks from supplier disruptions or performance issues[109] - Dependence on sole-source suppliers for certain components could lead to increased contract costs and impact the ability to meet obligations[111] - Subcontractors and suppliers sometimes provide non-compliant or deficient materials, increasing contract costs and affecting performance[112] Labor and Workforce Challenges - The company faces challenges in recruiting and retaining skilled personnel, particularly in specialized fields like engineering and cybersecurity[113][114] - Approximately 45% of employees are covered by collective bargaining agreements, with potential risks of labor disruptions during renegotiations[129][130] Contract Performance and Cost Risks - Cost growth on flexibly priced contracts that does not result in higher contract prices reduces profitability and exposes the company to potential loss of future business[104] - Manufacturing costs may increase due to rising material costs and wages, potentially exposing the company to cost recovery risks if inflationary conditions persist[110] - New technologies and innovative designs in contracts may lead to delays, increased costs, and potential profitability risks[115][116] Quality and Compliance Issues - Quality issues with products and services could require significant resources for corrective actions, impacting financial performance[118][119] - A 2% withhold of payments on certain invoices was imposed due to a significant deficiency in the Ingalls Shipbuilding Property Management System, as determined by a Navy Contracting Officer in August 2022[141] - The company is subject to various environmental laws and regulations, which could result in substantial capital and operating costs for compliance and remediation[144] - The company's nuclear operations are subject to increased regulatory oversight, potential fines, or shutdowns in the event of noncompliance with safety requirements[152] Pension and Retiree Healthcare Costs - Pension and retiree healthcare costs are sensitive to changes in discount rates and investment returns, potentially affecting financial results[120][121] Natural Disasters and Health Epidemics - Natural disasters and environmental events could disrupt operations, supply chains, and contract performance, leading to financial impacts[122][123][124] - Health epidemics like COVID-19 have caused workforce disruptions, increased costs, and supplier challenges, with potential future impacts[125][126][127] Legal and Regulatory Risks - The company relies on indemnity from the U.S. Government for costs arising from nuclear operations, but this may not cover all liabilities[153] - The company faces potential liabilities and reputational damage from improper conduct by employees, agents, or business partners, which could lead to administrative, civil, or criminal investigations[149] - The company's intellectual property rights are subject to challenge, invalidation, or misappropriation by third parties, which could adversely affect its business[160] - The company's contracts with the U.S. Navy include notice and approval rights for the Navy in the event of a change of control of its nuclear shipbuilding operations[163] - The company's organizational documents and Delaware law contain anti-takeover provisions that could delay or prevent a change of control[162] Insurance and Capital Market Risks - The company's insurance coverage may be insufficient to cover significant risks, potentially resulting in substantial uninsured losses[168] - Market volatility and adverse capital market conditions may increase borrowing costs and limit access to funding, affecting operations and acquisitions[169] - Tightening capital markets could negatively impact suppliers and subcontractors, potentially leading to delays and increased costs for the company[170] Dividends and Share Repurchases - The company's ability to pay dividends or repurchase shares is subject to limitations under Delaware law and depends on financial performance and capital requirements[174] Acquisitions and Joint Ventures - Acquisitions and joint ventures carry risks, including potential liabilities, integration challenges, and unanticipated costs[172] - Joint ventures may expose the company to additional risks due to shared control and potential conflicts of interest with partners[173]

Call Start: 09:00 January 1, 0000 9:54 AM ET Huntington Ingalls Industries, Inc. (NYSE:HII) Q3 2022 Earnings Conference Call November 3, 2022 09:00 ET Company Participants Christie Thomas - Vice President of Investor Relations Chris Kastner - President & Chief Executive Officer Tom Stiehle - Executive Vice President & Chief Financial Officer Conference Call Participants Doug Harned - Bernstein Robert Spingarn - Melius Research David Strauss - Barclays George Shapiro - Shapiro Research Seth Seifman - JPMorga ...

Huntington Ingalls Industries, Inc. (NYSE:HII) Q2 2022 Earnings Conference Call August 4, 2022 9:00 AM ET Company Participants Christie Thomas – Vice President-Investor Relations Chris Kastner – President and Chief Executive Officer Tom Stiehle – Executive Vice President and Chief Financial Officer Conference Call Participants Robert Springer – Melius Research Pete Skibiski – Alembic Global Robert Stallard – Vertical Research Partners Seth Seifman – JPMorgan Gautam Khanna – Cowen George Shapiro – Shapiro Re ...

| --- | --- | |-------------------------------------------------------------------|-------| | | | | | | | | | | | | | HII | | | | | | Q2 2022 Earnings | | | | | | August 4, 2022 | | | | | | Chris Kastner | | | President and Chief Executive Officer | | | Tom Stiehle Executive Vice President and Chief Financial Officer | | | | | | | | | | | Cautionary Statement Regarding Forward-looking Statements Statements in this presentation, other than statements of historical fact, constitute "forward-looking statements ...

| --- | --- | --- | |-------------------------------------------------------|---------------------------------------|-------| | | | | | | | | | | | | | | | | | HII | | | | | | | | | | | | Q1 2022 Earnings | | | | May 5, 2022 | | | | | | | | Chris Kastner | President and Chief Executive Officer | | | Tom Stiehle | | | | Executive Vice President and Chief Financial Officer | | | | | | | Cautionary Statement Regarding Forward-looking Statements Statements in this presentation, other than statements of historic ...

Huntington Ingalls Industries, Inc. (NYSE:HII) Q1 2022 Earnings Conference Call May 5, 2022 9:00 AM ET Company Participants Christie Thomas - VP of IR Chris Kastner - President and CEO Tom Stiehle - EVP and CFO Conference Call Participants Robert Stallard - Vertical Research Pete Skibiski - Alembic Global Advisors Seth Seifman - JPMorgan Doug Harned - Bernstein Myles Walton - UBS Gotham Khanna - Cowen Robert Springer - Melius Research David Strauss - Barclays George Shapiro - Shapiro Research Operator Ladie ...

Q4 2021 Earnings Presentation February 10, 2022 Mike Petters President and Chief Executive Officer Chris Kastner Executive Vice President and Chief Operating Officer Tom Stiehle Executive Vice President and Chief Financial Officer Cautionary Statement Regarding Forward-Looking Statements Statements in this presentation, other than statements of historical fact, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements invol ...