Huntington Ingalls Industries (HII) investor relations material

Executive summary

• First quarter 2026 revenues reached $3.1 billion, up 13.4% year-over-year, with growth across all major segments and strong shipbuilding demand.

• Net earnings were $149 million, with diluted EPS of $3.79, unchanged from the prior year.

• Major operational initiatives included throughput improvement, workforce expansion, apprenticeship programs, and new long-term labor agreements.

• Backlog reached $54.0 billion, supported by $4.0 billion in new contract awards.

• Significant milestones included builder's sea trials for CVN 79 and ratification of collective bargaining agreements.

Financial highlights

• Consolidated Q1 revenues were $3.1 billion, up 13.4% year-over-year; Newport News revenue rose 19.3% to $1.7 billion, Ingalls up 13.8% to $725 million, and Mission Technologies up 1.8% to $748 million.

• Segment operating income was $172 million (margin 5.6%), with consolidated operating income at $155 million (margin 5%).

• Net earnings were $149 million, and free cash flow was negative $461 million, similar to the prior year.

• Ended the quarter with $216 million in cash and $1.9 billion in liquidity.

• Paid $54 million in dividends; no share repurchases in Q1.

Outlook and guidance

• FY26 shipbuilding revenue guidance: $9.7–$9.9 billion, Mission Technologies $3.0–$3.2 billion; operating margins expected at 5.5%–6.5% and ~5%, respectively.

• Q2 2026 shipbuilding revenue expected at ~$2.4 billion, margin 5.7%–6.0%; Mission Technologies Q2 revenue expected at $750 million, margin around 4%.

• FY26 free cash flow projected at $500–$600 million.

• Medium-term revenue CAGR targeted at ~6%, aiming for $16B+ enterprise revenue by 2030.

• Capital expenditures for 2026 expected at 1.0%-1.5% of revenues for maintenance and 3.0%-3.5% for discretionary projects.