|HII Overview
HII

HUNTINGTON INGALLS INDUSTRIES, INC.

Industrials • CIK: 0001501585

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Market Cap
$13.37B
P/E (TTM)
22.1x
Rev Growth (TTM)
+8.2%
Net Margin (TTM)
4.8%
FCF Yield (TTM)
5.9%
FCF Margin (TTM)
6.4%

LATEST EARNINGS

Q4 FY2025
22 days ago
View source
Revenue
$3.48B
+15.7%
Net Income
$159.00M
EPS
$4.04
+28.3%
Operating
4.9% +1.2%
  • Full year 2025 revenue increased 8.2% to $12.5 billion, driven by growth across all business segments.
  • Full year 2025 diluted earnings per share increased 10.2% to $15.39.
  • Full year 2025 operating income increased 22.8% to $657 million, with operating margin improving to 5.3% from 4.6% in 2024.
  • 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.

Cash Flow Health

Free Cash Flow5/8 positive
TTM$794M
Q4 '25
$516M+3869%
Q3 '25
$13M-98%
FCF Margin
TTM6.4%
Q4 '2514.8%+3545%
Sector: 7.3%Below Avg
OCF Margin9.6%
OCF/NI1.98x
CapEx Coverage3.0x
FCF Yield5.9%
FCF Growth (2Y)+18%
Cash Conversion Cycle
10 days
DSO: 10+DIO: DPO:

Capital Allocation & Returns

Growth Focused
Total Shareholder YieldEst.
Est.1.6%
Div Yield1.6%
+
Est. Buyback2.6%

Prioritizing reinvestment over distributions

Dividend & Payout Metrics
Dividend Yield (TTM)1.6%
FCF Payout Ratio26.9%
Free Cash Flow (TTM)$794.0M
Capital Return / FCF26.8%
Est. Dividends Paid (TTM)$213.5M
Estimated: Buyback data estimated from FCF. Actual repurchase data not available for this company.
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
14.3%
Stable
-0.0% YoY-0.2%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
4.1%
8Q: 4.1%
Asset Turnover
1.02x
8Q: 1.03x
Leverage (1+D/E)
1.53x
D/E: 0.53x
DuPont: 6.4%14.3% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
3.48x
8Q:3.49x
+37.5%
Invested Cap Turn
3.49x
8Q:4.00x
+27.0%
CapEx Intensity
11.2%
8Q:13.6%
CapEx/Depreciation
1.22x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
Revenue
$12.5B
$3.5B8.9%
$3.2B3.6%
$3.1B12.7%
$2.7B9.0%
$3.0B9.3%
$2.7B7.7%
$3.0B6.1%
$2.8B
Operating Income
$657.0M
$172.0M6.8%
$161.0M1.2%
$163.0M1.2%
$161.0M46.4%
$110.0M34.1%
$82.0M56.6%
$189.0M22.7%
$154.0M
Net Income
$605.0M
$159.0M9.7%
$145.0M4.6%
$152.0M2.0%
$149.0M21.1%
$123.0M21.8%
$101.0M41.6%
$173.0M13.1%
$153.0M
Operating Cash Flow
$1.2B
$650.0M450.8%
$118.0M85.7%
$823.0M308.4%
$-395.0M201.0%
$391.0M83.6%
$213.0M2466.7%
$-9.0M95.5%
$-202.0M
Free Cash Flow
$794.0M
$516.0M3869.2%
$13.0M98.2%
$727.0M257.4%
$-462.0M266.8%
$277.0M121.6%
$125.0M226.3%
$-99.0M64.3%
$-277.0M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
22.1x
Valuation Lenses
Earnings
22.1x
vs sector
Cash Flow
15.3x
EV/FCF vs
Growth-Adj
2.2xPEG
Expensive for growth
Quality-Adj
1.5P/E per %ROIC
ROIC: 14.3%
Shareholder Returns
Dividend
1.6%
Buyback
Total Yield
1.6%
Market Cap$13.37B
EV
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
87/100
Exceptional

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)
8Q:
Return on Invested Capital (ROIC)Top 25%
14.3%
8Q:
Flat
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 4.1%
Asset Turnover: 1.02x

Earnings Quality

Cash Conversion

1.98x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin100.0%

Capital Efficiency

Invested Capital Turnover3.49x

Working Capital

Cash Conversion Cycle10 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
67/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
8.2%
OpInc Growth YoY
56.4%
EPS Growth YoY
10.1%
FCF 3Y CAGR
18.1%

Growth Quality Analysis

Efficient Growth: Free cash flow growing faster than revenue

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
100.0%
Operating
5.3%
Below Avg in sector
Net
4.8%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+1.5 pts
FCF: 6.4% | Net: 4.8%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Adequate
Net Debt / EBITDA
Net Debt: $1.93B
Interest Coverage
Leverage Metrics
Debt-to-Equity
0.53x
Balance sheet risk & solvency analysis