Core Viewpoint - U.S. military shipbuilder Huntington Ingalls reported that it anticipates negative free cash flow for the current quarter, despite exceeding quarterly profit estimates, which negatively impacted its share price [1] Group 1: Financial Performance - Huntington Ingalls beat quarterly profit estimates, indicating strong operational performance [1] - The expectation of negative free cash flow suggests potential liquidity challenges in the near term [1] Group 2: Market Reaction - The announcement of expected negative free cash flow led to a decline in the company's share price, reflecting investor concerns [1]

Group 1: Company Performance - Huntington Ingalls (HII) has gained approximately 21.5% year-to-date, outperforming the average return of 7.1% for Aerospace companies [4] - The Zacks Consensus Estimate for HII's full-year earnings has increased by 1.2% over the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [4] - HII currently holds a Zacks Rank of 2 (Buy), suggesting a favorable investment outlook [3] Group 2: Industry Comparison - Huntington Ingalls is part of the Aerospace - Defense industry, which includes 30 companies and has an average year-to-date gain of 7.4%, indicating HII's superior performance [6] - In contrast, Moog (MOG.A), another Aerospace stock, has returned 32.2% year-to-date and is part of the Aerospace - Defense Equipment industry, which has a lower average gain of 6.4% [5][7] - The Aerospace sector as a whole ranks 1 in the Zacks Sector Rank, reflecting strong overall performance among its 68 individual stocks [2]

Financial Data and Key Metrics Changes - In Q4 2025, revenues reached $3.5 billion, an increase of approximately 16% compared to the same period last year, driven by growth across all segments [18] - For the full year 2025, total revenues were $12.5 billion, an increase of $949 million or 8.2% from 2024 [21] - Diluted earnings per share for 2025 were $15.39, compared to $13.96 in 2024 [24] Business Line Data and Key Metrics Changes - Ingalls' Q4 2025 revenues were $889 million, up $153 million or 21% year-over-year, primarily due to higher volumes in amphibious assault ships and surface combatants [18] - Newport News' Q4 2025 revenues were $1.9 billion, an increase of $303 million or 19% from Q4 2024, driven by higher volumes in submarines and aircraft carriers [18] - Mission Technologies reported Q4 2025 revenues of $731 million, a 2.5% increase from the previous year, mainly due to higher volumes in warfare systems and unmanned systems [19] Market Data and Key Metrics Changes - The company expects shipbuilding revenues for 2026 to be between $9.7 billion and $9.9 billion, with margins in the range of 5.5% to 6.5% [15] - Mission Technologies anticipates revenues between $3 billion and $3.2 billion for 2026, with margins around 5% [16] Company Strategy and Development Direction - The company is raising its medium-term shipbuilding revenue growth guidance from approximately 4% to approximately 6% [15] - A focus on increasing shipbuilding throughput by 15% in 2026, following a 14% increase in 2025, is part of the operational strategy [12] - The company plans to continue ramping its distributed shipbuilding strategy and increase outsourcing by 30% in 2026 [13] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of increasing shipbuilding throughput to meet urgent customer needs in a challenging global security environment [17] - The company expressed confidence in its operational improvements and the strong support from the U.S. government for shipbuilding programs [17] Other Important Information - The company hired over 6,600 shipbuilders in 2025 and plans to hire at least the same number in 2026 to support increased throughput [12] - Free cash flow for 2025 was $800 million, exceeding guidance, with expectations for 2026 free cash flow between $500 million and $600 million [25][28] Q&A Session Summary Question: Productivity numbers and Virginia-class program - Management noted broad-based improvement across shipbuilding programs, with the Virginia-class performing well in 2025, and emphasized the need for increased throughput to achieve two submarines per year [36][37] Question: Long-term CAPEX expectations - Management indicated that while specific guidance beyond 2026 is not available, elevated CAPEX is expected due to ongoing opportunities [38][39] Question: Newport News margins and program improvements - Management discussed the need to stabilize performance and improve margins across programs, with a focus on working off existing contracts and improving hiring and attrition rates [45][48] Question: Industrial base funding and throughput - Management confirmed that the Block 5 contract has assisted in increasing throughput, but additional capital will be required to continue ramping up production [50][51] Question: Shipbuilding margin outlook - Management acknowledged that margins are expected to remain flat in the near term due to ongoing investments and the need to work through existing contracts, with a potential improvement expected as new contracts are awarded [67][70] Question: Frigate program and growth potential - Management expressed confidence in the frigate program, noting that material from previous contracts will help mitigate upfront costs, with revenue expected to ramp up in 2027 [76][90]

Financial Data and Key Metrics Changes - In Q4 2025, revenues reached $3.5 billion, an increase of approximately 16% compared to the same period last year, driven by growth across all segments [18] - For the full year 2025, total revenues were $12.5 billion, up $949 million or 8.2% from 2024, with each segment contributing to the increase [21] - Net earnings for Q4 2025 were $159 million, compared to $123 million in Q4 2024, with diluted earnings per share rising to $4.04 from $3.15 [21] - The company reported a free cash flow of $800 million for 2025, exceeding guidance [25] Business Line Data and Key Metrics Changes - Ingalls' Q4 2025 revenues were $889 million, an increase of $153 million or 21% from Q4 2024, primarily due to higher volumes in amphibious assault ships and surface combatants [18] - Newport News' Q4 2025 revenues were $1.9 billion, up $303 million or 19% from Q4 2024, driven by higher volumes in submarines and aircraft carriers [18] - Mission Technologies reported Q4 2025 revenues of $731 million, an increase of $18 million or 2.5% from Q4 2024, mainly due to higher volumes in warfare systems and unmanned systems [19] Market Data and Key Metrics Changes - The company expects shipbuilding revenues for 2026 to be between $9.7 billion and $9.9 billion, with margins projected in the range of 5.5% to 6.5% [15] - For Mission Technologies, anticipated revenues for 2026 are between $3 billion and $3.2 billion, with margins around 5% [16] Company Strategy and Development Direction - The company is raising its medium-term shipbuilding revenue growth guidance from approximately 4% to approximately 6% due to increased demand and operational improvements [15] - A focus on increasing shipbuilding throughput by 15% in 2026, following a 14% increase in 2025, is part of the operational strategy [12] - The company plans to continue investing in workforce, facilities, and technology to support growth and efficiency [12] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of responding to the urgent needs of defense customers in a challenging global security environment [17] - The company expressed confidence in its ability to meet future demand, citing strong bipartisan support for shipbuilding programs in the recent National Defense Authorization Act [16] - Management noted that the current operational initiatives and investments are expected to yield positive results in the coming years [17] Other Important Information - The company plans to increase outsourcing by another 30% in 2026, building on a 100% increase in 2025 [13] - Capital expenditures for 2026 are expected to be approximately 4%-5% of sales, representing an investment of $500 million to $600 million [29] Q&A Session Summary Question: Productivity numbers and Virginia-class program - Management indicated broad-based improvement across shipbuilding programs, with the Virginia-class performing well in 2025, and noted the need for increased throughput to achieve two submarines per year [36][37] Question: Long-term CAPEX expectations - Management expects CAPEX to remain elevated due to ongoing opportunities, but no specific guidance beyond the current year was provided [38][39] Question: Newport News margins and program improvements - Management acknowledged the need for margin improvements at Newport News and discussed the impact of existing contracts and the transition to post-COVID programs [45][48] Question: Industrial base funding and throughput - Management confirmed that the Block 5 contract has assisted in capital and throughput increases, but additional capital will be required to ramp up production [50][51] Question: Shipbuilding margin outlook - Management explained that margins are expected to remain stable in the near term, with improvements anticipated as new contracts are awarded and existing contracts are finalized [67][70] Question: Frigate program and growth potential - Management expressed confidence in the frigate program's potential for growth, with material from previous contracts expected to support initial production [76][90] Question: Supply chain and CVN 80 program status - Management confirmed that all necessary materials for the CVN 80 program have been received, and efforts are underway to get back on schedule [82][85]

Financial Data and Key Metrics Changes - In Q4 2025, revenues reached $3.5 billion, an increase of approximately 16% compared to the same period last year, driven by growth across all segments [17][18] - For the full year 2025, total revenues were $12.5 billion, reflecting an 8.2% increase from 2024, with net earnings of $605 million and diluted EPS of $15.39, up from $13.96 in 2024 [20][23] Business Line Data and Key Metrics Changes - Ingalls' Q4 2025 revenues were $889 million, up $153 million or 21% year-over-year, primarily due to higher volumes in amphibious assault ships and surface combatants [17] - Newport News' Q4 2025 revenues were $1.9 billion, an increase of $303 million or 19% from Q4 2024, driven by higher volumes in submarines and aircraft carriers [18] - Mission Technologies reported Q4 2025 revenues of $731 million, a 2.5% increase from the previous year, mainly due to higher volumes in warfare systems and unmanned systems [18] Market Data and Key Metrics Changes - The company expects shipbuilding revenues for 2026 to be between $9.7 billion and $9.9 billion, with margins projected in the range of 5.5% to 6.5% [13] - For Mission Technologies, anticipated revenues for 2026 are between $3 billion and $3.2 billion, with margins around 5% [14] Company Strategy and Development Direction - The company is focused on increasing shipbuilding throughput by 15% in 2026, following a 14% increase in 2025, and plans to hire at least 6,600 shipbuilders in 2026 [11][12] - A balanced capital allocation strategy is emphasized, with hundreds of millions targeted for capital investment in shipyards to support higher throughput [12][13] - The company is raising its medium-term shipbuilding revenue growth guidance from approximately 4% to approximately 6% [13] Management's Comments on Operating Environment and Future Outlook - Management highlighted the urgent need for U.S. Navy ships and technologies due to the global security environment, emphasizing the importance of operational efficiency and throughput [16][17] - The company expressed confidence in its ability to meet customer needs and capitalize on the unprecedented demand for its products and services [16] Other Important Information - The National Defense Authorization Act for fiscal year 2026 supports the company's shipbuilding programs, including funding for various classes of submarines and aircraft carriers [14][15] - The company ended 2025 with $774 million in cash and cash equivalents, and liquidity of approximately $2.5 billion [24] Q&A Session Summary Question: Productivity numbers and Virginia-class program performance - Management noted broad-based improvement across shipbuilding programs, with the Virginia-class performing well in 2025, but highlighted the need for increased throughput to achieve two submarines per year [34] Question: Long-term CAPEX expectations - Management indicated that while specific guidance beyond 2026 is not provided, CAPEX is expected to remain elevated due to ongoing opportunities [35] Question: Newport News margins and program improvement - Management acknowledged the need for margin improvement at Newport News and discussed the impact of existing contracts and the transition to post-COVID programs on future performance [41][42] Question: Industrial base funding and throughput - Management confirmed that the Block 5 contract has assisted in capital and throughput increases, but additional capital will be required to meet future demands [45] Question: Shipbuilding margin outlook - Management explained that while margins are expected to remain flat in the near term, improvements are anticipated as new contracts are awarded and existing contracts are worked off [60][66] Question: Frigate program and growth potential - Management expressed confidence in the frigate program's potential for growth, with expectations for ramp-up starting in 2027 [69][70]

分组1 - Huntington Ingalls (HII) reported quarterly earnings of $4.04 per share, exceeding the Zacks Consensus Estimate of $3.72 per share, and showing an increase from $3.15 per share a year ago, resulting in an earnings surprise of +8.53% [1] - The company achieved revenues of $3.48 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 13.73%, compared to $3 billion in the same quarter last year [2] - Huntington Ingalls has outperformed the S&P 500, with shares increasing about 21.5% since the beginning of the year, while the S&P 500 gained only 0.5% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $3.75 on revenues of $2.87 billion, and for the current fiscal year, it is $17.30 on revenues of $12.69 billion [7] - The Aerospace - Defense industry, to which Huntington Ingalls belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - The estimate revisions trend for Huntington Ingalls was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [6]

Q4 2025 Earnings Call 2 HII INVESTMENT THESIS Largest U.S. military seapower provider with leading all-domain, integrated defense Over the course of 2026 & 2027: Chris Kastner President and CEO Tom Stiehle EVP and CFO February 5, 2026 Cautionary Statement Regarding Forward-looking Statements Statements in this presentation and in our other filings with the SEC, as well as other statements we may make from time to time, other than statements of historical fact, constitute "forward-looking statements" within ...

Exhibit 99.1 News Release Contacts: Brooke Hart (Media) brooke.hart@hii-co.com (202) 264-7108 Segment operating income in 2025 was $717 million and segment operating margin was 5.7%, compared to $573 million and 5.0%, respectively, in 2024, the increase was driven by improved operating results across all business segments. 1 1 Diluted earnings per share for the full year was $15.39, compared to $13.96 in 2024. Christie Thomas (Investors) christie.thomas@hii-co.com (757) 380-2104 HII Reports Fourth Quarter a ...

Core Insights - HII reported a significant increase in revenues and operating income for the fourth quarter and full year of 2025, driven by growth across all business segments [1][2][3] Financial Performance - Fourth quarter 2025 revenues reached $3.5 billion, up 15.7% from $3.0 billion in Q4 2024 [1] - Operating income for Q4 2025 was $172 million, a 56.4% increase from $110 million in Q4 2024, resulting in an operating margin of 4.9% compared to 3.7% in the previous year [1][6] - For the full year 2025, revenues totaled $12.5 billion, an 8.2% increase from $11.5 billion in 2024 [2][7] - Diluted earnings per share for Q4 2025 were $4.04, up 28.3% from $3.15 in Q4 2024, and for the full year, it was $15.39, a 10.2% increase from $13.96 in 2024 [2][3][8] Segment Performance - Segment operating income for Q4 2025 was $195 million, a substantial increase of 89.3% from $103 million in Q4 2024, with a segment operating margin of 5.6% compared to 3.4% [2][6] - Ingalls Shipbuilding revenues for Q4 2025 were $889 million, a 20.8% increase from $736 million in Q4 2024, driven by higher volumes in amphibious assault ships and surface combatants [9][10] - Newport News Shipbuilding revenues for Q4 2025 were $1.9 billion, a 19.1% increase from $1.6 billion in Q4 2024, primarily due to higher volumes in submarines and aircraft carriers [14][15] - Mission Technologies revenues for Q4 2025 were $731 million, a 2.5% increase from $713 million in Q4 2024, attributed to higher volumes in Warfare Systems and Global Security [17][19] Cash Flow and Investments - Net cash provided by operating activities in 2025 was $1,196 million, significantly up from $393 million in 2024 [4] - Free cash flow for 2025 was $800 million, compared to $40 million in 2024 [4] Strategic Initiatives - The company achieved critical shipbuilding milestones in 2025, including the delivery of Virginia-class submarine Massachusetts and guided missile destroyer Ted Stevens [7] - HII invested over $400 million in capital improvements in 2025 and achieved approximately 14% shipbuilding throughput growth, targeting around 15% growth in 2026 [7][5] Financial Outlook - For FY26, HII expects shipbuilding revenue between $9.7 billion and $9.9 billion, with an operating margin between 5.5% and 6.5% [23][26] - Mission Technologies revenue is projected to be between $3.0 billion and $3.2 billion, with an operating margin of approximately 5% [23][26]

Core Viewpoint - HII's Newport News Shipbuilding division has successfully completed builder's sea trials for the John F. Kennedy (CVN 79), marking a significant milestone for the second Gerald R. Ford-class nuclear-powered aircraft carrier [1][2]. Group 1: Sea Trials and Testing - The sea trials involved testing important ship systems and components at sea for the first time, demonstrating the operational capabilities of CVN 79 [1][2]. - The event brought together shipbuilders, sailors, and Navy personnel to execute the testing and showcase ship operations [2]. Group 2: Technological Advancements - CVN 79 continues the legacy of advanced nuclear-powered aircraft carriers, incorporating enhancements that support increased operational efficiency and reduced manning requirements [3]. - The Ford-class features a new nuclear power plant and increased electrical power-generation capacity, reflecting advancements in naval technology [3]. Group 3: Company Overview - HII is recognized as America's largest shipbuilder, providing powerful ships and all-domain mission technologies, including unmanned systems, to U.S. and allied defense customers [6][7]. - The company has a history of over 140 years in advancing U.S. national security and employs a workforce of 44,000 [7].