McLEAN, Va., Oct. 01, 2024 (GLOBE NEWSWIRE) -- HII (NYSE: HII) announced today that its Mission Technologies division was awarded a $458 million contract to modernize communications and information technology (IT) networks for the U.S. government that will enable rapid decision-making in the battlespace. Under the task order, HII will develop, assess and implement innovative technical solutions that will improve system hardening to potential cyber threats, introduce new capabilities and enable cloud migrati ...

PASCAGOULA, Miss., Sept. 24, 2024 (GLOBE NEWSWIRE) -- HII (NYSE: HII) announced today that its Ingalls Shipbuilding division was awarded a $9.6 billion multi-ship procurement contract for the construction of three San Antonio-class (LPD 17) amphibious ships and a contract modification for the next America-class (LHA 6) large-deck amphibious ship. This combined procurement — the first of its kind for amphibious ships — begins the journey for the construction of LPDs 33, 34, 35 and LHA 10 for the U.S. Navy. " ...

MCLEAN, Va., Sept. 09, 2024 (GLOBE NEWSWIRE) -- HII's (NYSE: HII) Mission Technologies division has successfully built and delivered two REMUS 620 uncrewed underwater vehicles (UUVs) to the National Oceanic and Atmospheric Administration (NOAA) for enhanced high-resolution ocean floor mapping. Unveiled only 22 months ago in November 2022, the REMUS 620 is the first medium-class UUV designed to deliver a comprehensive range of above- and below-water capabilities over long distances. "The rapid delivery of th ...

MCLEAN, Va., Sept. 06, 2024 (GLOBE NEWSWIRE) -- HII's (NYSE: HII) Mission Technologies division announced today that Amy Boyette, a former Department of Energy (DOE) official with more than 30 years of experience in environmental management and National Nuclear Security Administration (NNSA) operations, has joined the company's Nuclear and Environmental Services (NES) business group as vice president of strategy and integration. In her new role, Boyette will serve on the NES leadership team and focus on eva ...

Huntington Ingalls Industries, Inc.'s (HII) Newport News business unit recently secured a modification contract involving the Nimitz (CVN 68) Class aircraft carrier. The award has been offered by the Naval Sea Systems Command, Washington, D.C. Details of the Deal Valued at $18.4 million, the contract is projected to be completed by November 2024. Per the terms of the deal, Huntington Ingalls will procure additional support to conduct pre-advanced planning for Nimitz (CVN 68) Class aircraft carrier defueling ...

PASCAGOULA, Miss., Aug. 07, 2024 (GLOBE NEWSWIRE) -- HII's (NYSE: HII) Ingalls Shipbuilding division presented National Merit Scholarships to the children of four Ingalls shipbuilders on Friday, Aug. 2, during a luncheon at the shipyard. These scholarships, valued from $2,000 to $2,500 each, will be renewable for up to four years of college undergraduate study and can be used at any regionally accredited U.S. college or university of the student's choice. "The recipients of this year's scholarships have sho ...

PASCAGOULA, Miss., Aug. 07, 2024 (GLOBE NEWSWIRE) -- HII's (NYSE: HII) Ingalls Shipbuilding division presented National Merit Scholarships to the children of four Ingalls shipbuilders on Friday, Aug. 2, during a luncheon at the shipyard. These scholarships, valued from $2,000 to $2,500 each, will be renewable for up to four years of college undergraduate study and can be used at any regionally accredited U.S. college or university of the student's choice. "The recipients of this year's scholarships have sho ...

NEWPORT NEWS, Va., Aug. 01, 2024 (GLOBE NEWSWIRE) -- HII (NYSE: HII) hosted Chief of Naval Operations Adm. Lisa Franchetti at the company's Newport News Shipbuilding division Wednesday. The visit, including a meeting with company leadership and a tour of the shipyard, focused on investments by HII and the Navy to improve the working experience for shipbuilders and sailors assigned to vessels under construction or undergoing maintenance at NNS. Among them: Franchetti was briefed on the design and planning un ...

Financial Performance - HII reported record second quarter revenues of $3 billion, a 6.8% year-over-year increase[3] - Operating income reached $189 million, up 21.2% year-over-year[3] - Net income increased to $173 million, a 33.1% year-over-year rise[3] - Diluted EPS grew to $4.38, marking a 33.9% year-over-year increase[3] - The company's quarter-end backlog stood at $48.5 billion[3] Segment Results - Ingalls Shipbuilding's revenue increased from $664 million to $712 million, a 7% increase[9] with operating income decreasing 14%[10] - Newport News Shipbuilding's revenue increased from $1.509 billion to $1.535 billion, a 2% increase[11] with operating income increasing 17%[11] - Mission Technologies revenue increased from $645 million to $765 million, a 19% increase[13] with operating income increasing 300%[15] Capital Deployment - Distributions to shareholders totaled $116 million, including $51 million in dividends and $65 million spent to repurchase 250 thousand shares[19] - Net capital expenditures accounted for 3.0% of revenues in Q2[19] Financial Outlook - The company reaffirmed its FY24 shipbuilding revenue guidance of $8.8 billion to $9.1 billion and shipbuilding operating margin of 7.6% to 7.8%[22] - Mission Technologies revenue guidance was raised to a range of $2.75 billion to $2.8 billion[22] - The company reaffirmed its 5-year (FY24-FY28) Free Cash Flow outlook of $3.6 billion[21]

Financial Data and Key Metrics Changes - Record second quarter revenue was $3 billion, up 6.8% from a year ago, and diluted earnings per share was $4.38 for the quarter, up from $3.27 in the second quarter of 2023 [4][10] - Operating income for the quarter was $189 million, an increase of $33 million or 21.2% from the second quarter of 2023, with an operating margin of 6.3% compared to 5.6% in the same period last year [10] - New contract awards during the quarter were $3.1 billion, resulting in a backlog of $48.5 billion at the end of the quarter, of which $27 billion is currently funded [5][10] Business Line Data and Key Metrics Changes - At Mission Technologies, revenues were $765 million, an increase of $129 million or 18.6% compared to the second quarter of 2023, with a trailing 12-month book-to-bill ratio of 1.15 [5][13] - Ingalls revenues were $712 million, up $48 million or 7.2% from the same period last year, driven by higher volumes in amphibious assault ships and surface combatants [11] - Newport News revenues were $1.5 billion, up $26 million or 1.7% from the same period last year, with operating income of $111 million and an operating margin of 7.2% [12] Market Data and Key Metrics Changes - The company continues to see bipartisan support for its programs in Washington, reflected in the fiscal year 2025 defense appropriations and authorization bills [8] - The Senate authorizers included additional funding authority for various shipbuilding programs, indicating strong market support for the company's initiatives [8] Company Strategy and Development Direction - The company is focused on executing its programs and meeting commitments to customers, with significant efforts in shipyards to create labor stability and improve capacity [3][6] - Long-term investments in capital and employee development are expected to stabilize and improve performance as the portfolio shifts towards new contracts [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving financial commitments to shareholders and highlighted the importance of executing on fundamentals in programs [9] - The company is optimistic about the second half of the year, anticipating strong cash collections and contract awards [17][28] Other Important Information - Cash used in operations was $9 million in the quarter, with net capital expenditures of $90 million [15] - The company paid dividends of $1.30 per share, totaling $51 million, and repurchased approximately 250,000 shares at a cost of approximately $65 million [15] Q&A Session Summary Question: Labor and Attrition - Management confirmed that hiring goals are being met, but attrition remains a challenge, with efforts focused on improving attendance and labor stability [20][21] Question: Free Cash Flow Visibility - Management indicated that achieving the expected free cash flow in Q4 will depend on meeting milestones and contract incentives, with some variability expected [24][25] Question: Ship Contracts and Pricing - The company expects to put another 21 boats under contract in the next 6 to 12 months, reflecting current macroeconomic pricing [29] Question: Ingalls Margin and Performance - Management acknowledged a dip in Ingalls margin due to milestone timing and lower risk retirement, but expects recovery in future quarters [31] Question: Block IV and Block V Work - Management provided updates on the progress of Block IV and Block V work, indicating that negotiations for Block VI are ongoing [33][34] Question: Free Cash Flow Guidance - Management reiterated a conservative approach to free cash flow guidance, with expectations for significant cash generation in Q4 [50][53]