serengeti130 Introduction It's time to discuss a company I believe is one of the most underappreciated dividend growth stocks. That company is Huntington Ingalls Industries, Inc. (NYSE:HII), one of the largest defense constructors in the United States and the backbone of the Navy. I held the company for a while in my dividend growth portfolio before I decided to sell it. As weird as that may sound, given that I just called it "underappreciated," my decision was solely based on me being massively overwei ...

NEWPORT NEWS, Va., April 08, 2024 (GLOBE NEWSWIRE) --  HII's (NYSE:HII) Newport News Shipbuilding division has completed the dry dock portion of the refueling and complex overhaul (RCOH) of Nimitz-class aircraft carrier USS John C. Stennis (CVN 74). Following the recent flooding of more than 100 million gallons of water into the dry dock, USS John C. Stennis was successfully moved to an outfitting berth at the shipyard, where the remainder of the RCOH work and testing will be completed. "Witnessing Stennis ...

NEWPORT NEWS, Va., April 04, 2024 (GLOBE NEWSWIRE) -- HII (NYSE: HII) will release its first quarter 2024 financial results on Thursday, May 2 and host an earnings conference call at 9 a.m. Eastern time the same day. The call will be webcast live on HII’s website: https://www.hii.com/. HII participants will include Chris Kastner, president and CEO, and Tom Stiehle, executive vice president and chief financial officer. Their remarks will be supplemented by a series of slides appearing on the company website. ...

NEWPORT NEWS, Va., April 04, 2024 (GLOBE NEWSWIRE) -- HII (NYSE: HII) will release its first quarter 2024 financial results on Thursday, May 2 and host an earnings conference call at 9 a.m. Eastern time the same day. The call will be webcast live on HII’s website: https://www.hii.com/. HII participants will include Chris Kastner, president and CEO, and Tom Stiehle, executive vice president and chief financial officer. Their remarks will be supplemented by a series of slides appearing on the company website. ...

Huntington Ingalls Industries (HII) , with rising earnings estimates, robust ROE and impressive backlog count, offers an opportunity to keep it on your watchlist in the Aerospace Defense industry.Let’s focus on the reasons that make this Zacks Rank #3 (Hold) stock a solid investment pick at the moment.Growth Projections & Surprise HistoryThe Zacks Consensus Estimate for HII’s first-quarter 2024 earnings per share (EPS) has increased 0.3% to $3.49 in the past 30 days. The Zacks Consensus Estimate for HII’s t ...

NEWPORT NEWS, Va., April 03, 2024 (GLOBE NEWSWIRE) -- Through sponsorships, presentations, interactive demonstrations, advertising, and displays, HII (NYSE:HII) will showcase the company's success in delivering the advantage to national and international sea service customers at the annual Navy League Sea-Air-Space Global Maritime Expo 2024. Attendees of the three-day expo will be encouraged to learn about HII's platforms, technologies, and solutions that support HII's growing strength as the nation's large ...

Cybersecurity Threats - Company faces significant cyber security threats, including advanced nation-state actors and ransomware, which could disrupt operations and compromise sensitive information[137] - As of the report date, no cybersecurity threats have materially affected the company, but the increasing sophistication of cyber threats poses ongoing risks[194] Contract and Cost Recovery - Company's ability to recover costs and realize profits depends on contract types (firm fixed-price, fixed-price incentive, cost-type, or time and material) with U.S. Government customers[110] - Company's procurement practices may be affected by changes in U.S. Government contract terms, including incentive-based fee arrangements and cost mandates, impacting profitability[95] Workforce and Specialized Skills - Company's reliance on qualified personnel with specialized skills, including engineering and cybersecurity, is critical to operational performance[116] - Company's suppliers and subcontractors face challenges due to COVID-19, including workforce issues, material shortages, and higher prices, impacting timely delivery and costs[134] Shipbuilding and Fleet Size - U.S. Navy fleet size reduced from 566 ships in 1989 to 291 ships as of December 31, 2023, leading to workforce reductions and intense competition for future shipbuilding programs[99] - Company's shipbuilding programs are subject to potential adverse effects if U.S. Government-owned shipyards invest in refueling nuclear-powered aircraft carriers[101] - The company's Pascagoula shipyard facilities are located on approximately 800 acres, with a 99-year lease, and are expected to remain in use for at least 43 more years[196] - The Newport News shipyard, one of the largest in the U.S., spans approximately 550 acres and includes extensive manufacturing and training facilities[198] Financial and Market Risks - Company's goodwill and purchased intangible assets accounted for approximately 23% and 8%, respectively, of total assets as of December 31, 2023[144] - Company's pension risk transfer transactions using group annuity contracts (GACs) may require additional contributions or result in noncash settlement charges[128] - The company is highly susceptible to claims and litigation, which could result in material cash payments or charges against operating income, potentially impacting financial position, results of operations, or cash flows[162] - Market volatility and adverse capital market conditions may affect the company's ability to access cost-effective funding and expose it to risks related to supplier and subcontractor financial viability[175] - The company is exposed to market risks, including interest rates and inflation[339] Intellectual Property and Acquisitions - The company relies on third-party intellectual property licenses, and there is a risk of being unable to secure necessary licenses on commercially reasonable terms in the future[167] - The company faces challenges in completing and integrating acquisitions, which could lead to unanticipated costs, liabilities, and adverse effects on business and results of operations[178] Climate Change and Compliance Costs - Company's operations and compliance costs may increase due to climate change regulations, including greenhouse gas emissions and energy taxes[154] Business Segments and Operations - As of December 31, 2023, the company's major operations are spread across multiple locations in the U.S., supporting various business segments including C5ISR, CEW&S, LVC, Fleet sustainment, Unmanned Systems, and Nuclear and Environmental Services[200]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________________ FORM 10-Q ______________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ For the transition period from ________ to ________ ...

Q2 2023 Highlights - The company achieved record second-quarter revenues of $2.8 billion, a 4.7% year-over-year increase[11] - Diluted EPS for the quarter was $3.27[11] - Shipbuilding revenue reached $2.2 billion, representing a 3.9% increase from Q2 2022[5] - Mission Technologies revenue was $645 million, up 7.5% from Q2 2022[5] Financial Outlook - The company reaffirms its shipbuilding and Mission Technologies guidance[11] - The company reaffirms free cash flow guidance[11] - The company expects shipbuilding operating margin to be flat sequentially from Q2 in Q3 2023[43] - The company expects Mission Technologies segment operating margin to be approximately 2.5% in Q3 2023[43] - The company reaffirms FY23 free cash flow guidance and interest expense[50] - The company expects FY23 free cash flow to be between $400 million and $450 million[51]

Financial Data and Key Metrics Changes - The company reported a revenue of $2.8 billion for Q2 2023, representing a 4.7% increase from Q2 2022 [38] - Diluted earnings per share decreased to $3.27 from $4.44 in the same quarter last year [44] - Operating income for the quarter was $156 million, down 18% from the previous year [44] Business Line Data and Key Metrics Changes - At Newport News, revenues increased by 5.3% to $1.5 billion, driven by growth in aircraft carrier and submarine construction [46] - Mission Technologies achieved record revenue of $645 million, a 7.5% increase year-over-year, but operating income decreased to $9 million from $25 million due to non-recurring income in the previous year [40][47] Market Data and Key Metrics Changes - The backlog at the end of the quarter was approximately $47 billion, with $24 billion currently funded [38] - New contract awards during the quarter were approximately $2.6 billion [38] Company Strategy and Development Direction - The company is focused on executing its shipbuilding backlog and expanding Mission Technologies, which is seen as a foundation for future growth [43] - There is strong bipartisan support for shipbuilding programs in Congress, which is expected to benefit the company [41] Management's Comments on Operating Environment and Future Outlook - Management highlighted labor as the greatest risk to meeting operational targets, despite hiring over 3,200 craftsmen in the first half of the year [66] - The company expects shipbuilding revenue to be approximately $2.1 billion in Q3, with an operating margin consistent with Q2 results [50] Other Important Information - The company reaffirmed its free cash flow guidance for 2023, expecting $400 million to $450 million [49] - Cash from operations was $82 million in the quarter, down from $267 million in Q2 2022 [48] Q&A Session Summary Question: What are the risks associated with the VCS program? - Management indicated that labor is the largest obstacle, but they are ahead of hiring plans [55] Question: How does the relationship with Electric Boat affect operations? - Management stated that there is no significant difference in operations between the Virginia class and Columbia class programs [79] Question: Can you provide insights on hiring and retention? - Management noted that while hiring is improving, retention remains a challenge, particularly with walk-in applicants [154] Question: What is the impact of the Kennedy contract modification? - Management expressed confidence in the Kennedy project, stating that the modification has integrated well into the baseline schedule [102] Question: How is the company addressing the challenges in Mission Technologies? - Management acknowledged that the majority of contracts are cost-plus, but they are pursuing fixed-price opportunities to improve margins [92]