Companies /Industrials

Huntington Ingalls Industries Inc

NYSE: HII Aerospace & Defense
$297.29
â–² $0.89 (+0.30%) today
Markets closed · 8:00am ET

Q2 2025 Earnings

Reported Jul 31, 2025, 7:18am ET · SEC source
$3.86
Beat +13.85%
EPS · est. $3.39
$3.1B
Beat +4.98%
Revenue · est. $2.9B
−4.6%
Trailing market
HII vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+4%+8%Jul 31Aug 1report 7:18am ETearnings−3.0%+0.5%
0+4%+8%Jul 31Aug 1earnings−3.0%+0.5%
HII +0.5%S&P 500 −3.0%
−4%0+4%+8%Jul 31Aug 1report 7:18am ETearnings−3.9%+0.5%
−4%0+4%+8%Jul 31Aug 1earnings−3.9%+0.5%
HII +0.5%NASDAQ −3.9%
−3%0+3%Jul 30Aug 7report 7:18am ETearnings−1.1%−2.0%
−3%0+3%Jul 30Aug 7earnings−1.1%−2.0%
HII −2.0%S&P 500 −1.1%
−3%0+3%Jul 30Aug 7report 7:18am ETearnings−0.9%−2.0%
−3%0+3%Jul 30Aug 7earnings−0.9%−2.0%
HII −2.0%NASDAQ −0.9%
+7.87%
Day of report
−3.24%
Next session
−4.45%
One week
−3.28%
30 days

S&P 500 over the same 30 days: +1.30%.

Did HII Beat Earnings? Q2 2025 Results

Huntington Ingalls Industries delivered a stronger-than-expected second quarter, with earnings per share of $3.86 beating the $3.39 consensus estimate by 13.85% and revenue of $3.08 billion topping expectations by roughly 4.98%, growing 3.5% year-over-year on the back of higher submarine volumes at Newport News, surface combatant work at Ingalls, and C5ISR expansion at Mission Technologies. The headline story, however, was a remarkable swing in cash generation, with operating cash flow reaching $823 million compared to negative $9 million a year ago, prompting management to raise its full-year free cash flow guidance to $500 million to $600 million. That momentum came against a backdrop of margin pressure, as Newport News operating margin contracted to 5.1% from 7.2% a year ago, weighed down by Virginia-class program performance and the absence of favorable prior-year contract adjustments. The quarter also produced $11.90 billion in new contract awards, pushing total backlog to $56.90 billion, while management reaffirmed shipbuilding revenue guidance of $8.90 billion to $9.10 billion for the full year.

Key Takeaways
  • Higher submarine volumes in Columbia-class and Virginia-class programs at Newport News Shipbuilding
  • Higher C5ISR and live, virtual, and constructive training solutions volumes at Mission Technologies
  • Higher surface combatant volumes at Ingalls Shipbuilding
  • Lower performance on Virginia-class submarine program and aircraft carrier construction at Newport News pressured margins
  • Absence of prior-year favorable contract adjustments on aircraft carrier RCOH program
  • Strong cash generation of $823M operating cash flow driven by timing of working capital

“Second quarter results were largely in line with our expectations as we continue to make steady progress on our operational initiatives for 2025. We have seen early signs that targeted investments are helping to stabilize the workforce and supply chain, in support of the broader maritime industrial base.”

Huntington Ingalls Industries CEO, on the earnings call

Forward Guidance & Outlook

HII reaffirmed FY25 segment revenue and operating margin guidance: shipbuilding revenue of $8.9B-$9.1B with shipbuilding operating margin of 5.5%-6.5%; Mission Technologies revenue of $2.9B-$3.1B with segment operating margin of 4.0%-4.5% and EBITDA margin of 8.0%-8.5%. FY25 free cash flow guidance was increased to $500M-$600M. Other FY25 assumptions include Operating FAS/CAS Adjustment of ($40M), non-current state income tax expense of ($15M), interest expense of ($110M), non-operating retirement benefit of $191M, effective tax rate of ~21%, D&A of ~$340M, and capex of ~4% of sales. For Q3 2025, the company expects shipbuilding revenue of ~$2.2B with margins near the low end of annual guidance, Mission Technologies revenue of ~$730M with operating margin of ~3.5%, non-current state income tax expense of ~$10M, and free cash flow of ~($150M). Mid to long term, HII targets top line growth of 4%+ and $15B enterprise revenue by 2030.

HII YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$900.0M$1.8B$2.7B$3.0B$3.1BRevenue$177.0M$163.0MOperating Income$173.0M$152.0MNet Income
$0$900.0M$1.8B$2.7BRevenueOperating IncomeNet Income

HII Revenue by Segment

Newport News Shipbuilding$1.6B+4.4%
Ingalls Shipbuilding$724.0M+1.7%
Mission Technologies$791.0M+3.4%

Figures from SEC filings and company reports. Not investment advice.