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Huntington Ingalls Industries

HII Q1 2026 Earnings

Reported May 5, 2026 at 7:20 AM ET · SEC Source

Q1 26 EPS

$3.79

BEAT +1.67%

Est. $3.73

Q1 26 Revenue

$3.10B

BEAT +2.72%

Est. $3.02B

vs S&P Since Q1 26

-15.6%

TRAILING MARKET

HII -14.2% vs S&P +1.4%

Market Reaction

Did HII Beat Earnings? Q1 2026 Results

Huntington Ingalls Industries opened 2026 on a solid footing, posting first-quarter revenue of $3.10 billion, up 13.3% year over year and ahead of the $3.02 billion consensus estimate by 2.72%, while diluted EPS of $3.79 edged past the $3.73 Wall Str… Read more Huntington Ingalls Industries opened 2026 on a solid footing, posting first-quarter revenue of $3.10 billion, up 13.3% year over year and ahead of the $3.02 billion consensus estimate by 2.72%, while diluted EPS of $3.79 edged past the $3.73 Wall Street expectation by 1.67%. The headline beat was powered largely by Newport News Shipbuilding, where higher aircraft carrier, submarine, and naval nuclear support volumes drove a 19.3% revenue surge, with Ingalls Shipbuilding adding further momentum on increased surface combatant activity. The strong top-line performance came with a margin trade-off, however, as consolidated operating margin contracted 89 basis points to 5.0%, partly reflecting the absence of favorable Virginia-class submarine contract adjustments that had lifted the year-ago quarter. Net earnings held flat at $149.00 million. With a $54.00 billion backlog and $4.00 billion in new contract awards during the quarter, HII reaffirmed full-year guidance, including free cash flow of $500 million to $600 million and shipbuilding revenue of $9.70 billion to $9.90 billion, even as at least one analyst trimmed price targets while maintaining a constructive view on the stock.

Key Takeaways

  • • Higher aircraft carrier, submarine, and naval nuclear support services volumes at Newport News Shipbuilding
  • • Higher surface combatant volumes at Ingalls Shipbuilding
  • • Higher volumes in All-Domain Operations, Unmanned Systems, and Global Security at Mission Technologies
  • • 18% year-over-year shipbuilding throughput improvement in Q1 2026
  • • Lower interest expense ($22M vs $28M year ago)
  • • Higher non-operating retirement benefit ($53M vs $48M year ago)

HII Forward Guidance & Outlook

HII reaffirmed its full-year FY26 financial guidance: shipbuilding revenue of $9.7B-$9.9B with shipbuilding operating margin of 5.5%-6.5%; Mission Technologies revenue of $3.0B-$3.2B with segment operating margin of approximately 5% and EBITDA margin of 8.4%-8.6%; free cash flow of $500M-$600M; effective tax rate of approximately 17%; interest expense of $105M; and non-operating retirement benefit of $213M. Medium-term outlook targets HII revenue CAGR of approximately 6% (shipbuilding ~6%, Mission Technologies ~5%) with enterprise revenue exceeding $16B by 2030. Additional upside potential from recently announced frigate and battleship programs. Q2 2026 lookahead: shipbuilding revenue of approximately $2.4B with operating margin of 5.7%-6.0%; Mission Technologies revenue of approximately $750M with operating margin of approximately 4%; free cash flow of ($100M) to $100M; effective tax rate of approximately 21%.

24/7 Wall St

HII YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

24/7 Wall St

HII Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q1 26

“We made good progress on our 2026 operational initiatives in the first quarter. Shipbuilding throughput has continued to improve with meaningful year over year growth in the first quarter as our team remains focused on driving efficiency and expanding the industrial base network.”

— Chris Kastner, Q1 2026 Earnings Press Release

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