NEWPORT NEWS, Va., Jan. 28, 2026 (GLOBE NEWSWIRE) -- HII’s (NYSE: HII) Newport News Shipbuilding division is marking 140 years of service to the nation today. On Jan. 28, 1886, Collis P. Huntington, a businessman whose investments enabled completion of the U.S. transcontinental railroad, turned his focus to shipbuilding, establishing what was first chartered as Chesapeake Dry Dock and Construction Co. and was then renamed Newport News Shipbuilding and Drydock Company. Several years later, the shipyard deliv ...

Financial Data and Key Metrics Changes - The company reported record third quarter sales of $3.2 billion, representing a 16.1% increase year-over-year [14] - Diluted earnings per share for the quarter were $3.68, up from $2.56 in the same period last year [17] - Shipbuilding sales grew by 18% year-over-year, driven by increased throughput in shipyards [5][14] - Mission Technologies saw an 11% sales growth, reaching $787 million [15] Business Line Data and Key Metrics Changes - Ingalls revenues reached a record $828 million, increasing by 24.7% compared to the third quarter of 2024, primarily due to higher material volume and surface combatants [14] - Newport News revenues were $1.6 billion, up 14.5% year-over-year, driven by higher volumes in submarine and aircraft carrier programs [14] - Shipbuilding revenue totaled $2.4 billion, exceeding guidance due to higher than expected material receipts [15] Market Data and Key Metrics Changes - The company secured $2 billion in contract awards during the third quarter, with a backlog of $56 billion, of which $33 billion is funded [6] - The demand for products and services remains strong, particularly in areas such as C5ISR, cyber electronic warfare, and unmanned systems [5][15] Company Strategy and Development Direction - The company is committed to accelerating shipbuilding construction to meet customer requirements and is focusing on increasing throughput across shipbuilding programs [5][9] - Strategic partnerships have been formed to enhance capabilities in unmanned systems and autonomy solutions [7][50] - The company is also pursuing a $250 million annualized cost reduction initiative [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving approximately 15% throughput improvement for the full year 2025, supported by investments in workforce and infrastructure [9] - The company is closely monitoring the impact of federal government appropriations on operations, with shipbuilding being a priority area [11][12] - Future contract awards, particularly for Virginia-class Block IV and Columbia-class submarines, are critical for maintaining guidance [21] Other Important Information - The effective tax rate for the quarter was 28.9%, higher than initial expectations due to a reduction in estimated research and development tax credits [17] - Free cash flow for the quarter was $16 million, with updated guidance for 2025 free cash flow set between $550 million and $650 million [22] Q&A Session Summary Question: Impact of government shutdown on Virginia Block IV and Columbia negotiations - Management indicated that furloughs are not impacting negotiations and that efforts are ongoing to finalize contracts by year-end [26][27] Question: Wage increases at Ingalls - Discussions are ongoing with the union at Ingalls regarding wage increases, expected to be resolved by early next year [30] Question: Shipbuilding revenue growth and guidance - Management explained that while Q3 saw significant growth, guidance for Q4 remains cautious due to the need for consistent performance [35][36] Question: Unmanned vessels partnership strategy - The company is leveraging open-source software for autonomy in unmanned vessels and forming partnerships to enhance capabilities [49][50] Question: Future cash flow expectations - Management provided insights on maintaining a conservative cash flow guidance, with expectations for incremental profitability as new contracts are executed [70][71]