HUNTINGTON INGALLS INDUSTRIES, INC. (HII) Earnings History

HUNTINGTON INGALLS INDUSTRIES, INC. - Q4 FY2025 EarningsBeat

Filed at: Feb 5, 2026, 7:16 AM EST|Read from source

EXECUTIVE SUMMARY

Huntington Ingalls Industries reported strong full-year 2025 results with revenue growth driven by all business segments and significant improvements in operating income and diluted EPS. The company achieved key shipbuilding milestones and demonstrated robust cash flow generation, positioning it for continued momentum in 2026.

POSITIVE HIGHLIGHTS

  • •

    Full year 2025 revenue increased 8.2% to $12.5 billion, driven by growth across all business segments.

    positive
  • •

    Full year 2025 diluted earnings per share increased 10.2% to $15.39.

    positive
  • •

    Full year 2025 operating income increased 22.8% to $657 million, with operating margin improving to 5.3% from 4.6% in 2024.

    positive
  • •

    Full year 2025 segment operating income increased 25.1% to $717 million, with segment operating margin improving to 5.7% from 5.0% in 2024.

    positive
  • •

    Net cash provided by operating activities in 2025 was $1,196 million, a significant increase from $393 million in 2024.

    positive
  • •

    Free cash flow in 2025 was $800 million, a substantial increase from $40 million in 2024.

    positive
  • •

    Ingalls Shipbuilding revenues increased 20.8% in Q4 2025 and 11.2% for the full year, driven by higher volumes in amphibious assault ships and surface combatants.

    positive
  • •

    Newport News Shipbuilding revenues increased 19.1% in Q4 2025 and 9.0% for the full year, driven by higher volumes in submarines and aircraft carriers.

    positive
  • •

    Mission Technologies revenues increased 2.5% in Q4 2025 and 3.6% for the full year, driven by higher volumes in Warfare Systems, Global Security, and Unmanned Systems.

    positive

CONCERNS & RISKS

  • •

    Inventoried costs increased by $11 million in 2025 compared to a decrease of $22 million in 2024, indicating a potential build-up.

    attention
  • •

    Contract assets increased by $75 million in 2025 compared to a decrease of $146 million in 2024, suggesting a potential slowdown in contract realization.

    attention
  • •

    Accounts payable and accruals decreased by $449 million in 2025 compared to an increase of $315 million in 2024, potentially indicating faster payments or reduced liabilities.

    attention
  • •

    Retiree benefits decreased by $154 million in 2025 compared to a decrease of $112 million in 2024, which could reflect changes in benefit obligations or funding.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$3.48B
+15.7%
Prior year: $3.00B
Annual (YTD)
$12.48B
N/A
Prior year: $11.54B
Net Income
Quarterly
$159.00M
N/A
EPS (Diluted)
Quarterly
$4.04
+28.3%
Prior year: $3.15
Annual (YTD)
$15.39
N/A
Prior year: $13.96
Operating Income
Quarterly
$172.00M
N/A
EPS (Basic)
Quarterly
$4.05
+28.6%
Prior year: $3.15
Annual (YTD)
$15.39
N/A
Prior year: $13.96

MARGIN ANALYSIS

Operating Margin
Current Quarter
4.9%
Prior Year
3.7%
YoY Change
+129 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q4 FY2025 2025

VISUAL OVERVIEW

|
Ingalls Shipbuilding
0.0%
N/A
Newport News Shipbuilding
0.0%
N/A
Mission Technologies
0.0%
N/A

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% Total
Ingalls Shipbuilding
N/A———
Newport News Shipbuilding
N/A———
Mission Technologies
N/A———
Total Revenue$0.00M——100.0%

Segment performance shows business unit health and growth drivers.

MANAGEMENT GUIDANCE

FY26

shipbuilding_revenue
$9700000.0B—$9900000.0B
Mid-point: $9800000.0B
shipbuilding_operating_margin
5.5%—6.5%
Mid-point: 6.0%
mission_technologies_revenue
$3000000.0B—$3200000.0B
Mid-point: $3100000.0B
mission_technologies_operating_margin
5.0%
mission_technologies_ebitda_margin
8.4%—8.6%
Mid-point: 8.5%
free_cash_flow
500,000,000—600,000,000
Mid-point: 550,000,000

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

MANAGEMENT COMMENTARY

We made solid progress on our operational initiatives in 2025 and enter 2026 with strong momentum.

— HUNTINGTON INGALLS INDUSTRIES, INC., Q4 FY2025 2025 Earnings Call

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.

— HUNTINGTON INGALLS INDUSTRIES, INC., Q4 FY2025 2025 Earnings Call

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, INC., Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Shipbuilding Throughput Growth
14
%

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.