Financial Performance - Q4 2025 sales increased by 5.5% year-over-year, reaching $1.225 billion compared to $1.161 billion in Q4 2024[8] - Organic daily sales saw a positive year-over-year growth of 0.2% for the first time in over a year[8] - Earnings per share (EPS) increased by 5.9% year-over-year, from $2.64 in Q4 2024 to $2.80 in Q4 2025[8] - EBITDA decreased slightly by 0.3% year-over-year, from $153.5 million in Q4 2024 to $153.0 million in Q4 2025[8] - Free cash flow for fiscal year 2025 was $465.2 million, up 34% year-over-year[33] Segment Performance - Engineered Solutions (ES) segment sales increased by 20.7% year-over-year in Q4 2025, with organic growth of 1.8%[31] - Service Center segment sales decreased by 1.5% year-over-year in Q4 2025[23] Fiscal Year 2026 Guidance - Total sales are projected to increase by 4% to 7% year-over-year[46] - Organic sales are expected to grow by 1% to 4% year-over-year[46] - EBITDA margin is guided to be between 12.2% and 12.5%[46] - Diluted EPS is projected to be in the range of $10.00 to $10.75[46]

Core Insights - Huntington Ingalls Industries, Inc. (HII) is expected to report second-quarter 2025 earnings on July 31, 2025, before market open, with a four-quarter average negative earnings surprise of 4.20% [1] Revenue Performance - The Ingalls unit is projected to experience a revenue decline of 2.5% year-over-year, with estimates at $0.69 billion due to lower sales volume from amphibious assault ships [2] - The Newport News segment is also expected to see a revenue drop of 0.5% year-over-year, with estimates at $1.53 billion, impacted by lower sales volumes in aircraft carriers and submarines [3] - The Mission Technologies unit is anticipated to report a revenue decline of 2.8% year-over-year, with estimates at $0.74 billion, primarily due to lower sales volumes from C5ISR [4] - Overall, HII's second-quarter sales are estimated to decline by 1.6% year-over-year to $2.93 billion, reflecting sales declines across all major segments [5][7] Earnings Expectations - HII's second-quarter earnings per share (EPS) estimate is pegged at $3.23, indicating a significant year-over-year decline of 26.3% [6][7] - The lower operating margin in the Ingalls segment, attributed to poor performance and supply-chain disruptions, is expected to negatively impact earnings [6] Earnings Prediction Model - The Zacks model indicates that HII does not conclusively predict an earnings beat this time, with an Earnings ESP of -0.29% [8] - HII currently holds a Zacks Rank of 2, indicating a "Buy" rating [9]

Financial Performance - Sales increased by 1.8% year-over-year, reaching $1.167 billion in Q3 2025 compared to $1.146 billion in Q3 2024 [9, 10] - EBITDA increased by 6.8% year-over-year, from $135.7 million in Q3 2024 to $144.9 million in Q3 2025 [10, 11] - Earnings per share (EPS) increased by 3.7% year-over-year, from $2.48 in Q3 2024 to $2.57 in Q3 2025 [9, 10] - Gross margin increased by 95 basis points year-over-year, reaching 30.5% in Q3 2025 compared to 29.5% in the prior year [11, 25] - Operating cash flow was $122.5 million, and free cash flow was $114.9 million, up 50% year-over-year [11, 32] Segment Performance - Service Center Distribution segment sales decreased by 3.5% year-over-year in Q3 2025 [17] - Engineered Solutions segment sales increased by 13.5% year-over-year in Q3 2025 [24] - Hydradyne Acquisition contributed nearly $59 million in sales and nearly $6 million in EBITDA during F3Q25 [15] Sales Trend - Organic daily sales decreased by 3.1% year-over-year [10, 13] - Average daily sales organic sequential increase of +2% in F3Q25 was ~200 bps below normal seasonal patterns [13] Guidance and Outlook - Fiscal year 2025 sales are projected to increase by 0% to 1% year-over-year [40] - Fiscal year 2025 EBITDA margin is expected to be between 12.3% and 12.4% [40] - The company anticipates over $400 million of free cash flow in fiscal year 2025 [15]

Core Viewpoint - Huntington Ingalls Industries, Inc. (HII) is expected to report a decline in first-quarter 2025 earnings, with negative sales growth projections and weak operating margins impacting overall performance [1][7]. Revenue Performance - The Ingalls unit is anticipated to see revenue growth, with estimates at $663.3 million, reflecting a 1.3% increase from the previous year [2]. - The Newport News unit is likely to experience improved revenue due to higher sales from the Columbia class submarine program, although the Virginia-class aircraft carrier's poor performance may negatively affect overall results [3]. - The Mission Technologies unit is expected to report a revenue decline of 8.7%, with estimates at $0.69 billion, primarily due to lower sales volumes from C5ISR [4][5]. Overall Financial Estimates - The overall sales for HII in the first quarter are estimated at $2.79 billion, indicating a decrease of 0.6% compared to the prior year [6]. - The earnings estimate for HII is projected at $2.90 per share, representing a year-over-year decline of 25.1% [7]. Earnings Prediction Model - The Zacks model indicates that HII is unlikely to achieve an earnings beat this quarter, with an Earnings ESP of -3.09% and a Zacks Rank of 3 (Hold) [8][9].