Core Insights - Huntington Ingalls Industries (HII) reported a strong performance in 2025, with revenue reaching $12.5 billion, an increase of 8.2% year-over-year, and diluted earnings per share of $15.39, driven by improved shipbuilding throughput and hiring efforts [3][6][4] Financial Performance - Q4 revenue was $3.5 billion, reflecting a 16% year-over-year increase, with all three segments showing margin improvement [7][6] - Net earnings for Q4 were $159 million, up from $123 million a year earlier, with diluted EPS increasing to $4.04 from $3.15 [8][6] - Management raised medium-term shipbuilding growth guidance to approximately 6%, with 2026 shipbuilding revenue expected to be between $9.7 billion and $9.9 billion [5][18] Operational Highlights - HII achieved a 14% year-over-year increase in shipbuilding throughput in 2025, with over 6,600 shipbuilders hired [2][6] - The company expects to deliver two ships in 2026—SSN 800 and LPD-30—and complete preliminary acceptance of CVN 79 [13][14] Segment Performance - Ingalls reported Q4 revenue of $889 million, a 21% increase year-over-year, while Newport News had Q4 revenue of $1.9 billion, up 19% [10][12] - Mission Technologies surpassed $3 billion in revenue for the first time in 2025, with an operating margin improvement to 5% from 3.9% [15][17] Future Outlook - For 2026, HII expects free cash flow of $500 million to $600 million and capital expenditures of approximately $500 million to $600 million [19][22] - The company emphasized the importance of timely contract negotiations for Virginia-class and Columbia-class submarines in the first half of 2026 to avoid production risks [20][21]

Core Insights - Huntington Ingalls Industries, Inc. (HII) reported a fourth-quarter 2025 earnings per share (EPS) of $4.04, reflecting a 28.3% increase from $3.15 in the same quarter last year, surpassing the Zacks Consensus Estimate of $3.72 by 8.6% [1] - For the full year 2024, HII's EPS was $15.39, exceeding the Zacks Consensus Estimate of $15.06 and up from $13.96 in the previous year [2] Total Revenues - HII's total revenues for the fourth quarter reached $3.48 billion, exceeding the Zacks Consensus Estimate of $3.06 billion by 13.7% and showing a 15.7% increase from $3 billion in the prior year, driven by higher sales across all major business segments [3] - For the full year 2025, revenues amounted to $12.48 billion, beating the Zacks Consensus Estimate of $12.07 billion and increasing by 8.2% from $11.54 billion in the previous year [4] Operational Performance - The company reported segmental operating income of $195 million in the fourth quarter, up from $103 million in the same quarter last year, with an operating margin expansion of 218 basis points to 5.6% [5] - The growth in operating income was attributed to strong performance across all three business segments [5] Segmental Performance - **Newport News Shipbuilding**: Revenues totaled $1.89 billion, a 19.1% year-over-year increase, with operating income rising 121.1% to $84 million, driven by higher volumes in submarines and aircraft carriers [6] - **Ingalls Shipbuilding**: Revenues reached $889 million, up 20.8% year over year, with operating earnings of $68 million, a 47.8% increase, primarily due to higher sales volumes from amphibious assault ships and surface combatants [7] - **Mission Technologies**: Revenues were $731 million, reflecting a 2.5% year-over-year increase, driven by higher volumes from warfare systems, global security, and unmanned systems [8] Financial Update - As of December 31, 2025, cash and cash equivalents totaled $774 million, down from $831 million a year earlier, while long-term debt remained stable at $2.70 billion [11] - Cash generated from operating activities was $1.20 billion, significantly higher than $0.39 billion a year ago, with free cash flow of $800 million compared to $40 million in the prior year [11] 2026 Guidance - HII expects shipbuilding revenues to be between $9.7 billion and $9.8 billion, with Mission Technologies revenues projected between $3.0 billion and $3.2 billion [12] - The company anticipates capital expenditures to be 4-5% of sales and free cash flow in the range of $500 million to $600 million [12]

Core Points - Huntington Ingalls Industries, Inc. (HII) reported first-quarter 2025 earnings of $3.79 per share, a decline of 2.1% from $3.87 in the prior-year quarter, but exceeded the Zacks Consensus Estimate of $2.90 by 30.7% [1] - Total revenues for the quarter were $2.73 billion, missing the Zacks Consensus Estimate of $2.79 billion by 2% and declining 2.5% from $2.81 billion in the year-ago quarter due to lower sales volume across all business segments [2] Operational Performance - Segmental operating income was $171 million, slightly up from $170 million in the first quarter of 2024, with an operating margin expansion of 19 basis points to 6.3% [3] - The increase in operating income was mainly driven by better performance in the Newport News Shipbuilding and Mission Technologies units [3] Orders and Backlog - HII received orders worth $2.1 billion in the first quarter of 2025, resulting in a total backlog of $48 billion as of March 31, 2025, down from $48.7 billion as of December 31, 2024 [4] Segmental Performance - Newport News Shipbuilding: Revenues totaled $1.40 billion, down 2.6% year over year, with operating income of $85 million, up 3.7% year over year due to contract incentives from the Virginia-class submarine program [5] - Ingalls Shipbuilding: Revenues were $637 million, down 2.7% year over year, with operating earnings of $46 million, down 23.3% year over year due to lower performance in amphibious assault ships [6] - Mission Technologies: Revenues totaled $735 million, down 2% year over year, with operating income increasing 42.9% year over year to $40 million, driven by higher performance in cyber, electronic warfare & space, and uncrewed systems [6][7] Financial Update - Cash and cash equivalents as of March 31, 2025, were $167 million, significantly down from $831 million as of December 31, 2024 [8] - Long-term debt remained at $2.70 billion as of March 31, 2025, consistent with the end of 2024 [8] - Cash used in operating activities was $395 million compared to $202 million a year ago [8] - Free cash outflow was $462 million in the first quarter of 2025, higher than $274 million in the prior-year period [9] 2025 Guidance - HII reaffirmed its 2025 guidance, expecting shipbuilding revenues in the range of $8.9-$9.1 billion and Mission Technologies revenues in the range of $2.9-$3.1 billion [10] - The company projects free cash flow to be between $300-$500 million [10]

Core Insights - HII reported first quarter 2025 revenues of $2.7 billion, a decrease of 2.5% from the same period in 2024, attributed to lower volumes at Newport News Shipbuilding, Ingalls Shipbuilding, and Mission Technologies [2][10] - Operating income increased to $161 million with an operating margin of 5.9%, compared to $154 million and 5.5% in the first quarter of 2024, driven by favorable operating adjustments and improved segment results [3][4] - Net earnings for the quarter were $149 million, down from $153 million in the first quarter of 2024, with diluted earnings per share at $3.79 compared to $3.87 [5][10] Financial Performance - First quarter revenues were $2.7 billion, down from $2.8 billion in the same quarter of 2024 [9] - Operating income rose to $161 million, a 4.5% increase year-over-year, while operating margin improved by 40 basis points [3][9] - Segment operating income was $171 million with a margin of 6.3%, compared to $170 million and 6.1% in the prior year [4][9] Segment Analysis Ingalls Shipbuilding - Revenues decreased by 2.7% to $637 million, with segment operating income falling to $46 million, a 23.3% decline [11][12] - Segment operating margin was 7.2%, down from 9.2% in the previous year [12] Newport News Shipbuilding - Revenues were $1.4 billion, a decrease of 2.6%, primarily due to lower volumes in aircraft carriers [15] - Segment operating income increased to $85 million, with a margin of 6.1%, up from 5.7% [16][15] Mission Technologies - Revenues were $735 million, down 2.0%, but segment operating income rose to $40 million, a 42.9% increase [19][20] - Segment operating margin improved to 5.4%, compared to 3.7% in the same period last year [20] Contract Awards and Backlog - New contract awards in the first quarter totaled $2.1 billion, resulting in a total backlog of approximately $48.0 billion as of March 31, 2025 [6][10] Financial Outlook - The company reaffirms its financial guidance for FY25, expecting shipbuilding revenue between $8.9 billion and $9.1 billion, with an operating margin of 5.5% to 6.5% [22][23] - Mission Technologies revenue is projected to be between $2.9 billion and $3.1 billion, with an operating margin of 4.0% to 4.5% [22][23]