It expects sales to roughly double to $21.37 billion by 2035 as demand for submarines, warships and icebreakers grows, fueled by increasing geopolitical tensions. ...

By Christoph Steitz and Tom Käckenhoff FRANKFURT/DUESSELDORF, Feb 11 (Reuters) - German submarine maker TKMS reported a $22 billion order backlog - a ‌new record - and raised its 2026 sales outlook on Wednesday, ‌citing a boost in demand for warships at a time of rising geopolitical tensions. Like ​many of its peers, TKMS has been riding a surge in investor demand for shares in defence companies triggered by the war in Ukraine as well as U.S. pressure on Europe to step up ‌its military capabilities. T ...

Key Takeaways HII posted Q4 EPS of $4.04, up 28.3% year over year, beating estimates as revenues climbed 15.7%.Newport News Shipbuilding generated 54.4% of sales, with segment revenues up 19.1% on submarines and carriers.Huntington Ingalls produced $800M in free cash flow in 2025 and forecasts $500-$600M for 2026.Huntington Ingalls Industries, Inc.’s (HII) fourth-quarter 2025 earnings of $4.04 per share increased 28.3% from $3.15 in the prior-year quarter. The bottom line also beat the Zacks Consensus Estim ...

General Dynamics (NYSE:GD) Q4 2025 Earnings call January 28, 2026 09:00 AM ET Speaker9Good morning, and welcome to the General Dynamics fourth quarter 2025 earnings conference call. All participants will be in a listen-only mode. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press the star key followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Please n ...

Core Insights - HII celebrates the one-year anniversary of Newport News Shipbuilding (NNS) Charleston Operations in Goose Creek, South Carolina, highlighting the facility's contributions to U.S. Navy programs and community engagement [1][2]. Group 1: Production and Operations - Since the acquisition in January 2025, NNS has ramped up production at the Charleston facility, delivering its first unit within 40 days and exceeding production targets for 2025 [2]. - The Charleston Operations spans 45 acres with over 480,000 square feet of manufacturing space, strategically located within South Carolina's maritime ecosystem, providing barge and rail access and the potential for expansion [5]. Group 2: Strategic Initiatives - HII's distributed shipbuilding initiative aims to increase shipbuilding throughput to meet rising demand, partnering with 23 shipyards and fabricators beyond traditional labor markets [6]. - The company is exploring partnerships with international manufacturers to expand capacity, including the potential addition of another shipyard in the U.S. [6]. Group 3: Workforce and Community Engagement - NNS President Kari Wilkinson emphasized the importance of teamwork across locations, stating that the collective efforts contribute to significant historical changes in shipbuilding [2]. - Rear Adm. Jonathan Rucker acknowledged the crucial role of shipbuilders in increasing submarine and carrier shipbuilding capacity, highlighting the importance of leveraging local and national talent [5].

Core Viewpoint - ThyssenKrupp AG (TKAMY) shares experienced a significant rally, driven by optimism in the Marine Systems segment and strong earnings expectations for the upcoming quarter [1][2][3]. Group 1: Stock Performance - TKAMY shares rose by 5.9% to close at $12.37, with trading volume higher than usual, contributing to a total gain of 7.6% over the past four weeks [1]. - The stock currently holds a Zacks Rank of 1 (Strong Buy), indicating strong market confidence [4]. Group 2: Business Segment Performance - The Marine Systems segment is showing strong momentum, with order growth attributed to the addition of four submarines under the German-Norwegian 212CD program and two submarines added to Singapore's existing order [2]. - Progress in new construction, marine electronics, and software businesses is also contributing positively to the segment's outlook [2]. Group 3: Earnings Expectations - The company is projected to report quarterly earnings of $0.20 per share, reflecting a year-over-year increase of 322.2% [3]. - Expected revenues for the quarter are $8.83 billion, which represents a 5.7% increase compared to the same quarter last year [3]. - The consensus EPS estimate for TKAMY has remained unchanged over the last 30 days, indicating stability in earnings expectations [4].

Industry Overview - The Zacks Aerospace-Defense industry is characterized by companies that design and manufacture heavy-built products, including commercial and military jets, helicopters, combat vehicles, missiles, and military satellites [2][3] - The industry also encompasses cybersecurity firms providing IT services and C4ISR solutions, with revenue streams from defense contractors offering spare parts and maintenance services [3] Key Trends - Increasing Defense Budget: The proposed U.S. defense budget is set to rise to approximately $1.5 trillion in fiscal 2027 from $901 billion in fiscal 2026, which is expected to support long-term contract awards and production rates for defense companies [4] - Air Traffic Growth: Global air passenger traffic increased by 5.7% year over year in November 2025, with a revised full-year forecast of 5.2% for 2025, indicating strong demand in the aviation sector that benefits defense companies [5] - Supply-Chain Challenges: The industry faces significant supply-chain disruptions leading to delivery backlogs of over 17,000 aircraft, which is nearly 60% of the world's active fleet, impacting growth potential despite rising air travel demand [6][7] Market Performance - The Aerospace-Defense industry has outperformed the Zacks S&P 500 composite with a 36.6% increase over the past year, while the Zacks Aerospace sector rose by 40.5% [11] - The industry currently trades at an EV/Sales ratio of 3.39X, lower than the S&P 500's 5.84X and the sector's 3.82X, indicating potential valuation opportunities [14] Notable Companies - **Huntington Ingalls Industries (HII)**: Focuses on nuclear-powered ships and has announced an expansion of its unmanned facility in the U.K. The Zacks Consensus Estimate for HII's 2026 sales indicates a 4.9% improvement year over year [17][18] - **Intuitive Machines (LUNR)**: A diversified space company that recently acquired Lanteris Space Systems for $800 million. The Zacks Consensus Estimate for LUNR's 2026 sales suggests a significant increase of 108.7% year over year [20][21] - **L3Harris Technologies (LHX)**: Engaged in advanced defense technologies and has proposed a partnership with the U.S. Department of War to expand solid rocket motor production. The Zacks Consensus Estimate for LHX's 2026 sales indicates a 6.4% increase year over year [23][24]

Core Viewpoint - Huntington Ingalls Industries, Inc. (HII) is a prominent U.S. defense contractor with a market capitalization of $15.2 billion, specializing in military ship design, construction, and advanced mission technologies. Financial Performance - HII is expected to report Q4 2025 earnings of $3.75 per share, reflecting a 19.1% increase from $3.15 per share in the same quarter last year [2] - For fiscal 2025, analysts project an EPS of $15.07, an increase of nearly 8% from $13.96 in fiscal 2024, with further growth anticipated to $17.19 in fiscal 2026, representing a 14.1% year-over-year increase [3] Stock Performance - HII's stock has increased by 107.1% over the past 52 weeks, significantly outperforming the S&P 500 Index's 19.4% rise and the State Street Industrial Select Sector SPDR ETF's 23.7% return during the same period [4] - Following the release of strong Q3 2025 results, HII shares rose by 6.9%, with record revenues of $3.2 billion and net earnings of $145 million, or $3.68 per share [5] Operational Highlights - The company has raised its full-year free cash flow guidance to between $550 million and $650 million, supported by a robust backlog of $55.7 billion and $2 billion in new contract awards during the quarter [6] Analyst Sentiment - Analysts maintain a cautiously optimistic view on HII, with a consensus "Moderate Buy" rating; among 12 analysts, five recommend a "Strong Buy," six suggest a "Hold," and one advises a "Moderate Sell" [7]

Core Viewpoint - Huntington Ingalls Industries, Inc. (HII) is the largest military shipbuilder in the U.S. and has shown significant stock performance, outperforming the broader market and its industry peers, driven by strong earnings and a substantial backlog of contracts [1][2][4]. Company Overview - HII is valued at $12.1 billion and specializes in designing, building, and maintaining U.S. Navy vessels, including nuclear-powered aircraft carriers and submarines [1]. - The company also provides mission technologies, including defense systems, cyber solutions, and unmanned technologies [1]. Stock Performance - HII shares have increased by 58.7% over the past year, significantly outperforming the S&P 500 Index, which rose by 10.5% [2]. - In the last six months, HII stock has risen by 32.4%, compared to a 10.1% increase in the S&P 500 [2]. - HII has also outperformed the SPDR S&P Aerospace & Defense ETF (XAR), which gained 30.4% over the past year [3]. Financial Performance - In the third quarter, HII reported revenues of $3.2 billion, a 16.1% increase year over year, with net earnings of $145 million and EPS of $3.68 [4]. - Shipbuilding margins improved significantly due to higher volumes in surface combatants, submarines, and aircraft carriers [4]. - The consolidated operating margin rose to 5%, up from 3% a year earlier, supported by solid growth in Mission Technologies [4]. Contracts and Guidance - HII secured $2 billion in new contracts, increasing its total backlog to $55.7 billion [4]. - The company reaffirmed and slightly raised its full-year guidance [4]. Analyst Expectations - Analysts project HII's EPS to grow by 7.6% to $15.02 for the current fiscal year [5]. - The consensus among 11 analysts is a "Moderate Buy," with three "Strong Buy" ratings, seven "Holds," and one "Moderate Sell" [5].

Core Insights - Huntington Ingalls Industries, Inc. (HII) reported third-quarter 2025 earnings of $3.68 per share, a decline of 43.8% from $2.56 in the prior-year quarter, but exceeded the Zacks Consensus Estimate of $3.29 by 11.9% [1] - The company's total revenues for the quarter reached $3.19 billion, surpassing the Zacks Consensus Estimate of $2.94 billion by 8.4%, and improved 16.1% from $2.75 billion in the year-ago quarter [2] - Segmental operating income increased to $179 million from $97 million in the third quarter of 2024, with an operating margin expansion of 208 basis points to 5.6% [3] Revenue Performance - Total revenues for the quarter were $3.19 billion, reflecting a 16.1% year-over-year increase driven by higher sales volume across all major business segments [2] - Newport News Shipbuilding segment revenues totaled $1.62 billion, up 14.5% year over year, primarily due to increased volumes in submarines and aircraft carriers [5] - Ingalls Shipbuilding segment revenues reached $828 million, a 24.7% increase year over year, driven by higher sales volumes from surface combatants [6] - Mission Technologies segment revenues totaled $787 million, up 11% year over year, attributed to higher volumes from C5ISR and training solutions [6] Operational Performance - Segmental operating income rose to $179 million compared to $97 million in the same quarter last year, indicating strong operational performance across all segments [3] - The operating income for Newport News Shipbuilding increased by 433.3% year over year to $80 million, influenced by prior unfavorable adjustments [5] - Ingalls Shipbuilding reported operating earnings of $65 million, up 32.7% year over year, driven by increased volumes [6] Financial Update - As of September 30, 2025, cash and cash equivalents totaled $312 million, a significant decrease from $831 million as of December 31, 2024 [8] - Long-term debt as of June 30, 2025, remained stable at $2.70 billion, consistent with the end of 2024 levels [10] - Cash generated by operating activities amounted to $546 million, a substantial increase from $2 million a year ago [10] Guidance - The company revised its shipbuilding revenue guidance to a range of $9.0-$9.1 billion, compared to the previous guidance of $8.9-$9.1 billion [11] - For Mission Technologies, revenue expectations were narrowed to $3.0-$3.1 billion from the prior range of $2.9-$3.1 billion [11] - Free cash flow guidance was raised to $550-$650 million, up from the previous estimate of $500-$600 million [11] Backlog and Orders - HII received orders worth $2 billion in the third quarter of 2025, resulting in a total backlog of $55.7 billion as of September 30, 2025, down from $56.9 billion as of June 30, 2025 [4]