Huntington Ingalls Industries Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.06%.
Did HII Beat Earnings? Q4 2025 Results
Huntington Ingalls Industries closed Q4 2025 with a decisive beat on both the top and bottom lines, as the Newport News, Virginia-based shipbuilder posted revenue of $3.48 billion, running 12.18% ahead of the $3.10 billion consensus and marking 15.7% year-over-year growth, while diluted EPS of $4.04 cleared the $3.85 Street estimate by 5.03%. The standout driver was sharply improved execution across all three business segments, most notably at Newport News Shipbuilding, where favorable cumulative catch-up adjustments on the Virginia-class submarine program helped lift consolidated operating income 56.4% to $172.00 million and expand operating margin by 129 basis points to 4.9%. For the full year, free cash flow surged to $800.00 million from just $40.00 million in 2024, underscoring the breadth of the operational turnaround. Looking ahead, HII guided FY2026 free cash flow of $500 million to $600 million and set a medium-term revenue target exceeding $16.00 billion by 2030, supported by roughly 15% targeted shipbuilding throughput growth next year, including expanding use of AI-enabled welding technology across its shipyards.
- Higher volumes in submarines and aircraft carriers at Newport News Shipbuilding
- Higher volumes in amphibious assault ships and surface combatants at Ingalls Shipbuilding
- Lower unfavorable cumulative catch-up adjustments in Virginia-class submarine construction
- Favorable contract adjustments on Virginia-class submarine program
- Higher volumes and performance in Warfare Systems, Global Security, and Unmanned Systems at Mission Technologies
- Lower purchased intangible amortization at Mission Technologies
- ~14% shipbuilding throughput growth achieved in 2025
- Doubled outsourced hours in 2025
“We made solid progress on our operational initiatives in 2025 and enter 2026 with strong momentum. With more than 40 ships at Ingalls and Newport News in active construction or modernization, our focus in 2026 is clear: We must build on this momentum, and continue to increase our shipbuilding throughput. The U.S. Navy and all of our defense customers need our ships and technologies now more than ever and we are committed to delivering for our customer and the nation.”
Huntington Ingalls Industries CEO, on the earnings call
Forward Guidance & Outlook
For FY2026, HII expects 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 ~5% and EBITDA margin of 8.4%–8.6%; free cash flow of $500M–$600M; Operating FAS/CAS Adjustment of ($44M); interest expense of ($105M); non-operating retirement benefit of $213M; effective tax rate of ~17%; D&A of ~$330M; and capex at 4%–5% of sales. Q1 2026 look-ahead includes shipbuilding revenue of ~$2.3B at ~5.5% operating margin, Mission Technologies revenue of $700M–$750M at 4.0%–4.5% operating margin, and free cash flow of ($600M) given Q4 2025 pull-forward. Medium-term HII revenue CAGR is expected at ~6%, with shipbuilding at ~6% and Mission Technologies at ~5%, targeting $16B+ enterprise revenue by 2030. Shipbuilding throughput improvement is targeted at ~15% YoY in 2026, with outsourcing hours expected to grow ~30% and capital investment of $500M–$600M.
HII YoY Financials
HII Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.