Huntington Ingalls Industries(HII) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter 2024 revenues were $3.0 billion, a decrease of 5.4% from $3.2 billion in the fourth quarter of 2023[2] - Diluted earnings per share for the fourth quarter was $3.15, down 54.3% from $6.90 in the same period last year[4] - Full year 2024 revenues totaled $11.5 billion, an increase of less than 1% compared to 2023[4] - The company reported net earnings of $123 million for the three months ended December 31, 2024, compared to $274 million for the same period in 2023[33] - Basic earnings per share for the year ended December 31, 2024, was $3.15, down from $6.90 in 2023[33] - Net earnings for 2024 were $550 million, down from $681 million in 2023, a decrease of 19.2%[35] - Segment operating income for the fourth quarter was $110 million, a decline of 64.7% from $312 million in the fourth quarter of 2023[3] - Segment operating income for the year ended December 31, 2024, was $573 million, down from $842 million in 2023, a decrease of 32%[47] Revenue Breakdown - Newport News Shipbuilding revenues for the fourth quarter were $1.6 billion, a decrease of 4.6% from the prior year[15] - Mission Technologies achieved revenues of $713 million in the fourth quarter, down 4.3% from 745 million in the same period last year[19] - Mission Technologies revenues for the year ended December 31, 2024, increased to $2,937 million, up 8.8% from $2,699 million in 2023[49] - Shipbuilding revenue for 2024 was $11,535 million, slightly up from $11,454 million in 2023, an increase of 0.7%[47] Cash Flow and Capital Expenditures - Full year 2024 net cash provided by operating activities was $393 million, significantly lower than $970 million in 2023[6] - For the three months ended December 31, 2024, net cash provided by operating activities was $391 million, down from $562 million in the same period of 2023[48] - Free cash flow for FY25 is anticipated to be between $300 million and $500 million[27] - Free cash flow for the three months ended December 31, 2024, was $277 million, a decrease of 36.2% compared to $434 million in the same period of 2023[48] - Capital expenditures increased to $367 million in 2024 from $292 million in 2023, an increase of 25.7%[35] - Capital expenditures for the year ended December 31, 2024, totaled $367 million, an increase from $292 million in 2023[48] - Grant proceeds for capital expenditures in 2024 were $14 million, consistent with the previous year[48] Contracts and Awards - The backlog at year-end 2024 was approximately $48.7 billion, supported by new contract awards of approximately $12.1 billion during the year[9] - Awarded a $6.7 billion contract for electronic warfare engineering and technical services support for the U.S. Air Force[22] - Awarded a $3 billion Federal Government task order for national security services and new and emerging technology[22] - Awarded a $458 million contract to modernize communications and IT networks for the U.S. Department of Defense[22] - Mission Technologies secured total contract value awards exceeding $12 billion in 2024[7] Dividends and Shareholder Returns - Declared dividends of $1.35 per share for the three months ended December 31, 2024, compared to $1.30 in 2023[33] - Dividends paid in 2024 were $206 million, compared to $200 million in 2023, an increase of 3%[35] Future Projections - FY25 shipbuilding revenue is projected to be between $8.9 billion and $9.1 billion, with an operating margin of 5.5% to 6.5%[25] - FY25 Mission Technologies revenue is expected to be between $2.9 billion and $3.1 billion, with an operating margin of 4.0% to 4.5% and an EBITDA margin of 8.0% to 8.5%[27] - The company has a mid to long-term revenue growth expectation of over 4%[27] Asset and Liability Overview - Total assets increased to $12,141 million in 2024 from $11,215 million in 2023, representing a growth of 8.2%[34] - Total liabilities increased to $7,475 million in 2024 from $7,122 million in 2023, an increase of 4.9%[34] - Cash and cash equivalents rose to $831 million in 2024, compared to $430 million in 2023, an increase of 93.5%[35] Mission Technologies Performance - Mission Technologies segment operating income for the year ended December 31, 2024, was $116 million, reflecting a 14.9% increase from $101 million in 2023[49] - Mission Technologies EBITDA for the year ended December 31, 2024, was $233 million, slightly up from $232 million in 2023[49] - The EBITDA margin for Mission Technologies for the year ended December 31, 2024, was 7.9%, compared to 8.6% in 2023[49] - The depreciation expense for Mission Technologies for the year ended December 31, 2024, was $11 million, unchanged from 2023[49] - The amortization expense for Mission Technologies decreased to $99 million in 2024 from $109 million in 2023[49]