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]

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 ...

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 Insights - GXO Logistics, Inc. has announced a contract renewal and expansion with BAE Systems, marking the beginning of their third decade of partnership [1][2][9] - The six-year agreement will support BAE Systems in the development of Type 26 frigates, enhancing the UK's defense capabilities [2][5] Company Developments - The partnership extension reflects BAE Systems' confidence in GXO's logistics solutions, particularly following GXO's acquisition of Wincanton, which has bolstered its defense capabilities [3][6] - GXO will provide warehousing solutions and materials handling at BAE Systems' shipyards in Scotstoun and Govan, as well as manage inbound and outbound volumes across various warehousing facilities in Scotland [3][4] Operational Enhancements - The agreement includes support for inbound and outbound transport operations through GXO's 4PL Control Tower, which will enhance visibility and coordination of inventory movements [4] - The collaboration aims to improve the efficiency of BAE Systems' supply chain and shipbuilding operations, providing the necessary flexibility and resilience for the Type 26 frigate program [5] Industry Position - GXO Logistics is recognized as the world's largest pure-play contract logistics provider, with over 150,000 team members and more than 1,000 facilities globally [7] - The company has established itself as a leading provider in the aerospace and defense sectors, with operations spanning over 30 global sites [5][7]

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].

Core Insights - Huntington Ingalls (HII) is expected to report quarterly earnings of $3.72 per share, an increase of 18.1% year-over-year, with revenues projected at $3.06 billion, reflecting a 1.7% increase compared to the same period last year [1] Earnings Estimates - The consensus EPS estimate has been revised 0.6% higher in the last 30 days, indicating a collective reevaluation by analysts [2] - Revisions to earnings estimates are significant indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3] Revenue Projections - The consensus estimate for 'Sales and Service Revenues- Mission Technologies' is $763.02 million, indicating a 7% increase from the prior-year quarter [5] - 'Sales and Service Revenues- Ingalls' is projected to reach $702.19 million, suggesting a decrease of 4.6% year-over-year [5] - 'Sales and Service Revenues- Newport News' is expected to be $1.63 billion, reflecting a year-over-year increase of 2.4% [5] Segment Operating Income - Analysts estimate 'Segment Operating Income (loss)- Ingalls' will be $52.95 million, up from $46.00 million in the same quarter last year [6] - 'Segment Operating Income (loss)- Newport News' is projected at $86.76 million, compared to $38.00 million reported in the same quarter last year [6] - 'Segment Operating Income (loss)- Mission Technologies' is expected to reach $29.26 million, an increase from $19.00 million in the same quarter last year [7] - The estimate for 'Operating income (loss)- Operating FAS/CAS Adjustment' is projected at -$10.46 million, down from $14.00 million in the previous year [7] Stock Performance - Over the past month, shares of Huntington Ingalls have returned +16.9%, significantly outperforming the Zacks S&P 500 composite's +0.9% change [7] - Currently, HII holds a Zacks Rank 2 (Buy), suggesting potential outperformance in the near future [7]

Core Insights - HII hosted U.S. Marine Corps leadership at its Ingalls Shipbuilding division, emphasizing the importance of amphibious warships in supporting Navy and Marine Corps missions globally [1][2][5] Group 1: Company Overview - HII is the largest shipbuilder in America, specializing in delivering powerful ships and all-domain mission technologies, including unmanned systems [7] - The company has a workforce of 44,000 and has a history of over 140 years in advancing U.S. national security [8] Group 2: Current Projects - Ingalls Shipbuilding is currently constructing two amphibious assault ships, Bougainville (LHA 8) and Fallujah (LHA 9), along with three Flight II LPDs: Harrisburg (LPD 30), Pittsburgh (LPD 31), and Philadelphia (LPD 32) [5] - In September 2024, the Navy awarded Ingalls a contract for three additional San Antonio-class amphibious transport dock ships (LPD 33, LPD 34, and LPD 35) and a modification for the fifth America-class amphibious assault ship, Helmand Province (LHA 10) [5] Group 3: Strategic Importance - The Marine Corps highlighted the critical role of amphibious warships for a range of missions, including peacekeeping, deterrence, combat operations, and humanitarian assistance [4][5] - The collaboration between Ingalls Shipbuilding, the U.S. Navy, and the Marine Corps was showcased during the visit, reinforcing the strategic importance of the amphibious ship program [2]

据悉欧盟委员会将提出新措施，旨在确保欧盟航运业使用更多本土制造的船舶及其他产品服务。根据文 件草案，该"欧盟制造"提案将于下周公布，比欧盟行政机构宣布优先选用本地产品的全面计划提前一 周，该项计划目前在欧盟国家间存在分歧。 据悉欧盟委员会将提出新措施，旨在确保欧盟航运业使用更多本土制造的船舶及其他产品服务。根据文 件草案，该"欧盟制造"提案将于下周公布，比欧盟行政机构宣布优先选用本地产品的全面计划提前一 周，该项计划目前在欧盟国家间存在分歧。 文件草案显示，在航运领域，欧盟委员会将鼓励公共机构采购船舶或设备时，基于可持续性及是否"欧 盟制造"等非价格因素选择供应商。此举有望推动欧盟本土渡轮、科考船、破冰船及拖船的制造。草案 指出，私营领域可通过为船东提供更便捷的融资渠道来刺激对欧盟制造船舶的需求，欧洲投资银行或可 参与其中。 欧盟行政机构拟于2月10日提交提案，以加强欧盟船舶制造与航运业竞争力，并提升港口安全性与可持 续性，该提案属于整体发展战略的组成部分。 责任编辑：王许宁 文件草案显示，在航运领域，欧盟委员会将鼓励公共机构采购船舶或设备时，基于可持续性及是否"欧 盟制造"等非价格因素选择供应商。此举有望推 ...