Huntington Ingalls Industries (HII) Q4 2025 earnings summary

Executive summary

• 2025 revenue reached $12.5 billion, up 8.2% year-over-year, with EPS at $15.39 and all segments achieving record results and major ship deliveries.

• Shipbuilding throughput increased 14% in 2025, targeting 15% growth in 2026, supported by significant hiring, outsourcing, and capital investment.

• Free cash flow for 2025 was $800 million, with a year-end cash balance of $774 million and total liquidity of $2.5 billion.

• Major shipbuilding milestones included delivery of DDG-128, SSN 798, and Massachusetts, with five major ship deliveries planned for 2026–2027.

• Strategic partnerships and acquisitions advanced technology and manufacturing capabilities.

Financial highlights

• Q4 2025 revenue was $3.5 billion, up 16% year-over-year, with all segments contributing to growth.

• Full-year 2025 net earnings were $605 million, with diluted EPS of $15.39, up from $13.96 in 2024.

• Segment operating income for 2025 was $717 million (5.7% margin), up from $573 million (5%) in 2024.

• Free cash flow for 2025 was $800 million, exceeding guidance, with $396 million in capital expenditures.

• Ended 2025 with $774 million in cash and $2.5 billion in liquidity.

Outlook and guidance

• 2026 shipbuilding revenue expected between $9.7 and $9.9 billion, with margins of 5.5%–6.5%.

• Mission Technologies 2026 revenue guidance is $3.0–$3.2 billion, with margins around 5% and EBITDA margins of 8.4%–8.6%.

• 2026 free cash flow projected at $500–$600 million; capital expenditures to be $500–$600 million or 4%–5% of sales.

• Medium-term consolidated revenue CAGR raised to 6%, with shipbuilding at 6% and Mission Technologies at 5%.

• Additional upside possible from new frigate and battleship programs, with ramp-up expected from 2027.