Huntington Ingalls Industries(US:HII)2025-10-30 11:13Financial Performance - Third quarter revenues reached a record $3.2 billion, up 16.1% from $2.749 billion in the same quarter of 2024[3] - Net earnings for the third quarter were $145 million, or $3.68 diluted earnings per share, compared to $101 million and $2.56 per share in the third quarter of 2024, representing a 43.6% increase[5] - Operating income in the third quarter was $161 million with an operating margin of 5.0%, compared to $82 million and 3.0% in the same quarter of 2024[4] - For the three months ended September 30, 2025, product sales were $2.072 billion, an increase from $1.761 billion in the same period of 2024[26] - Service revenues for the nine months ended September 30, 2025, reached $3.266 billion, compared to $3.057 billion in 2024[26] - Operating income for the three months ended September 30, 2025, was $161 million, up from $82 million in the same period of 2024[26] - Net earnings for the nine months ended September 30, 2025, were $446 million, compared to $427 million in 2024[26] - Total revenues for the nine months ended September 30, 2025, reached $9,008 million, compared to $8,531 million in 2024, reflecting a year-over-year growth of 5.6%[40] - Net earnings for the nine months ended September 30, 2025, increased to $446 million, up from $427 million in the same period of 2024, representing a growth of 4.4%[28] Revenue Breakdown - Ingalls Shipbuilding revenues increased by 24.7% to $828 million, driven by higher volumes in surface combatants[9] - Newport News Shipbuilding revenues rose 14.5% to $1.617 billion, primarily due to increased volumes in submarines and aircraft carriers[13] - Mission Technologies revenues grew by 11.0% to $787 million, attributed to higher volumes in C5ISR and cyber solutions[14] - The Mission Technologies segment reported revenues of $2,313 million for the nine months ended September 30, 2025, up from $2,224 million in 2024, marking a growth of 4.0%[42] Backlog and Contracts - New contract awards in the third quarter totaled $2.0 billion, increasing the total backlog to $55.7 billion as of September 30, 2025[6] - The company achieved a book-to-bill ratio of 1.25x in the third quarter[17] Financial Outlook - The financial outlook for shipbuilding revenue is projected between $9.0 billion and $9.1 billion for fiscal year 2025[19] - FY25 shipbuilding revenue is projected to be between $9.0 billion and $9.1 billion, with an expected operating margin of 5.5% to 6.5%[22] - FY25 Mission Technologies revenue is expected to be between $3.0 billion and $3.1 billion, with an operating margin of approximately 4.5% and an EBITDA margin between 8.0% and 8.5%[22] - The guidance for FY25 free cash flow has been increased to between $550 million and $650 million, with a cumulative target of $1.2 billion for FY25 and FY26[22] Cash Flow and Capital Expenditures - Operating cash flow for the nine months ended September 30, 2025, was $546 million, a significant increase from just $2 million in the same period of 2024[28] - Free cash flow for the nine months ended September 30, 2025, was $284 million, a significant recovery from a negative $237 million in the same period of 2024[41] - Capital expenditures for the nine months ended September 30, 2025, totaled $268 million, compared to $253 million in 2024, indicating an increase of 5.9%[28] Debt and Assets - Total assets as of September 30, 2025, were $12.309 billion, compared to $12.141 billion as of December 31, 2024[27] - Total liabilities decreased to $7.325 billion as of September 30, 2025, from $7.475 billion as of December 31, 2024[27] - The company repaid $500 million in long-term debt during the nine months ended September 30, 2025, compared to $229 million in the same period of 2024[28] - Cash and cash equivalents at the end of the period were $312 million, a decrease from $430 million at the beginning of the period[28] Technological Advancements - The company unveiled the AI-enabled ROMULUS family of unmanned surface vessels, enhancing its technological capabilities[17]