The U.S. shipbuilding industry has been in a lull since the height of the pandemic, with companies tied to pre-COVID contracts that are not nearly as profitable now.But the budget winds in Washington appear to be shifting, and Huntington Ingalls Industries (HII -1.06%) is likely to be one of the primary beneficiaries if they do. Shares of Huntington Ingalls traded up 12.9% in April, according to data provided by S&P Global Market Intelligence, as investors begin to climb on board for what they believe will ...

Huntington Ingalls Industries, Inc.’s (HII) first-quarter 2025 earnings of $3.79 per share declined 2.1% from $3.87 in the prior-year quarter. However, the bottom line beat the Zacks Consensus Estimate of $2.90 by 30.7%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)The year-over-year decline can be attributed to poor sales performance in the first quarter of 2025 compared with first-quarter 2024.Total RevenuesRevenues for the quarter totaled $2.73 billion, which missed the Zacks ...

Financial Performance - Sales and service revenues for the three months ended March 31, 2025, decreased by $71 million, or 3%, compared to the same period in 2024, primarily due to lower volumes at Newport News, Ingalls, and Mission Technologies[89]. - Operating income for the three months ended March 31, 2025, was $161 million, an increase of $7 million, or 5%, compared to $154 million in the same period in 2024[86]. - General and administrative expenses increased by $14 million, or 6%, to $246 million for the three months ended March 31, 2025, primarily due to higher overhead costs[97]. - Segment operating income for the three months ended March 31, 2025, was $171 million, reflecting a slight increase of $1 million, or 1%, compared to $170 million in the same period in 2024[101]. - Interest expense increased by $7 million, or 33%, to $28 million for the three months ended March 31, 2025, compared to $21 million in the same period in 2024[86]. - For the three months ended March 31, 2025, total sales and service revenues decreased by $71 million, or 3%, to $2,734 million compared to $2,805 million in the same period of 2024[108]. - Ingalls segment sales and service revenues decreased by $18 million, or 3%, to $637 million, primarily due to lower volumes in amphibious assault ships[112][113]. - Newport News segment sales and service revenues decreased by $38 million, or 3%, to $1,396 million, driven by lower volumes in aircraft carriers and naval nuclear support services[115][116]. - Mission Technologies segment sales and service revenues decreased by $15 million, or 2%, to $735 million, primarily due to lower volumes in C5ISR[118][119]. - Operating income for the three months ended March 31, 2025, increased by $7 million, or 5%, to $161 million compared to $154 million in the same period in 2024[108]. - Ingalls segment operating income decreased by $14 million, or 23%, to $46 million, primarily driven by lower performance on amphibious assault ships[112][114]. - Newport News segment operating income increased by $3 million, or 4%, to $85 million, primarily due to contract incentives on the Virginia class submarine program[115][117]. - Mission Technologies segment operating income increased by $12 million, or 43%, to $40 million, driven by higher performance in cyber, electronic warfare & space[118][120]. Budget and Funding - The fiscal year 2025 budget cycle concluded with the passage of the Full-Year Continuing Appropriations and Extensions Act, which included funding for key shipbuilding programs[80]. - The federal budget environment remains a significant long-term risk, with continued uncertainty in defense discretionary spending impacting the defense industrial base[79]. Cash Flow and Investments - Cash used in operating activities for the three months ended March 31, 2025, was $395 million, compared to $202 million in the same period in 2024, largely due to unfavorable changes in trade working capital[138]. - Cash used in investing activities for the three months ended March 31, 2025, was $199 million, significantly higher than $71 million in the same period in 2024, primarily due to the acquisition of W International[140]. - Free cash flow for the three months ended March 31, 2025, decreased by $188 million to $(462) million from $(274) million in 2024, mainly due to unfavorable changes in trade working capital[143]. - Cash used in financing activities for the three months ended March 31, 2025, was $70 million, a decrease from $147 million in the same period in 2024, primarily due to a reduction in common stock repurchases[141]. Backlog and Contracts - Total backlog as of March 31, 2025, was $48.0 billion, a decrease from $48.7 billion as of December 31, 2024, with approximately 22% expected to convert into sales in 2025[132]. - New contract awards during the three months ended March 31, 2025, were approximately $2.1 billion, primarily driven by awards at Newport News[134]. Workforce and Operations - The Company employs over 44,000 people domestically and internationally, highlighting its significant workforce in the defense sector[75]. Geopolitical and Economic Environment - The global geopolitical and economic environment continues to be impacted by heightened tensions and instability, affecting the market for defense products and services[81]. Interest and Tax Rates - The effective income tax rate for the three months ended March 31, 2025, was 20.3%, up from 16.8% in 2024, mainly due to excess tax benefits recognized on stock-based compensation in the prior period[130]. - Interest expense for the three months ended March 31, 2025, increased to $28 million from $21 million in the same period in 2024, due to an increase in outstanding long-term debt[126]. - The Operating FAS/CAS Adjustment was a net expense of $10 million for the three months ended March 31, 2025, compared to $17 million in the same period in 2024, primarily driven by higher interest rates under FAS[104]. - For the three months ended March 31, 2025, the non-operating retirement benefit increased to $48 million from $44 million in the same period in 2024, primarily due to the amortization of net actuarial costs[128]. Capital Expenditures and Financial Position - Capital expenditures for maintenance and sustainment in 2025 are expected to be approximately 1.0% to 1.5% of annual revenues, with discretionary capital expenditures expected to be around 2.0% to 2.5%[141]. - As of March 31, 2025, the company had $12 million in undrawn letters of credit and $389 million in outstanding surety bonds, with no significant off-balance sheet arrangements[145]. - The company has a $1.7 billion revolving credit facility and a $1.7 billion commercial paper program, with no indebtedness outstanding as of March 31, 2025, indicating no interest rate risk from these instruments[155]. Construction and Development Projects - The company is constructing 12 new Columbia class (SSBN 826) submarines to replace the aging Ohio class, with the first submarine's construction beginning in 2020 and long-lead-time material contracts awarded for the next five boats in 2023[152]. - The company delivered USS Gerald R. Ford (CVN 78) to the U.S. Navy in Q2 2017, and has received contracts for the detail design and construction of John F. Kennedy (CVN 79), Enterprise (CVN 80), and Doris Miller (CVN 81)[152]. - The company has contracts to construct multiple Arleigh Burke class (DDG 51) destroyers, including Ted Stevens (DDG 128) and Jeremiah Denton (DDG 129), with deliveries made for USS Frank E. Petersen Jr. (DDG 121) in 2021, USS Lenah H. Sutcliffe Higbee (DDG 123) in 2022, and USS Jack H. Lucas (DDG 125) in 2023[152]. - The company delivered USS Fort Lauderdale (LPD 28) in 2022 and received a long-lead-time material contract for Philadelphia (LPD 32), with further modifications awarded in 2023[153]. - The company is currently constructing Bougainville (LHA 8) and Fallujah (LHA 9) as part of the America class (LHA 6) amphibious assault ships program, with a contract modification awarded for Helmand Province (LHA 10) in 2024[152]. - The company has delivered 10 out of 11 planned Legend class National Security Cutters (NSCs), which are the largest and most advanced cutters in the U.S. Coast Guard[153]. - The company is constructing Virginia class (SSN 774) fast attack submarines as the principal subcontractor to Electric Boat, tailored for a wide range of warfighting missions[153]. Inflation Risks - The company is exposed to inflation risks affecting raw materials and components, and mitigates this by negotiating long-term agreements and incorporating price escalation provisions in contracts[156]. - The company expects persistent cost inflation to potentially impact its financial position and cash flows if long-term inflationary conditions continue[156].

PASCAGOULA, Miss., May 01, 2025 (GLOBE NEWSWIRE) -- HII’s (NYSE: HII) Ingalls Shipbuilding hosted a “signing day” for the 2025 graduates of its Shipbuilder Academy at the shipyard Wednesday. This year, 43 students were offered full-time positions at Ingalls, marking the beginning of their careers with HII. The “signing day” coincided with National Apprenticeship Day, recognizing the importance of connecting individuals to meaningful careers and assisting employers in building a skilled workforce. Through ha ...

Huntington Ingalls (HII) reported $2.73 billion in revenue for the quarter ended March 2025, representing a year-over-year decline of 2.5%. EPS of $3.79 for the same period compares to $3.87 a year ago.The reported revenue represents a surprise of -1.98% over the Zacks Consensus Estimate of $2.79 billion. With the consensus EPS estimate being $2.90, the EPS surprise was +30.69%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determ ...

Huntington Ingalls (HII) came out with quarterly earnings of $3.79 per share, beating the Zacks Consensus Estimate of $2.90 per share. This compares to earnings of $3.87 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 30.69%. A quarter ago, it was expected that this shipbuilder would post earnings of $3.28 per share when it actually produced earnings of $3.15, delivering a surprise of -3.96%.Over the last four quarters, the co ...

Huntington Ingalls Industries (HII) Q1 2025 Earnings Call May 01, 2025 09:00 AM ET Speaker0 Ladies and gentlemen, thank you for standing by, and welcome to the First Quarter twenty twenty five HII Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. I would now like to hand the call over to Christy Thomas, Vice President of Investor Relations. Mrs. Thomas, you may begin. Speaker1 Thank you, operator ...

Q1 2025 Earnings Call Chris Kastner President and CEO Tom Stiehle EVP and CFO May 1, 2025 Cautionary Statement Regarding Forward-looking Statements 2 HII INVESTMENT THESIS Largest U.S. military seapower provider with leading all-domain, integrated defense Over the next ~20 months: Mid to Long Term: Q1 2025 EARNINGS 3 1 Non-GAAP measure. See appendix for definitions and reconciliations. Statements in this presentation and in our other filings with the SEC, as well as other statements we may make from time to ...

NEWPORT NEWS, Va., May 01, 2025 (GLOBE NEWSWIRE) -- HII (NYSE: HII) today reported results for the first quarter of fiscal 2025. Highlights First quarter revenues were $2.7 billionFirst quarter net earnings were $149 million or $3.79 diluted earnings per shareNew contract awards of $2.1 billion, resulting in backlog of $48 billionCompany reaffirms previously issued financial guidance1 First Quarter ResultsFirst quarter 2025 revenues of $2.7 billion were down 2.5% from the first quarter of 2024, driven by lo ...

Contacts: Brooke Hart (Media) brooke.hart@hii-co.com 202-264-7108 Exhibit 99.1 News Release Christie Thomas (Investors) christie.thomas@hii-co.com 757-380-2104 HII Reports First Quarter 2025 Results NEWPORT NEWS, Va. (May 1, 2025) - HII (NYSE: HII) today reported results for the first quarter of fiscal 2025. Highlights First quarter revenues were $2.7 billion First quarter net earnings were $149 million or $3.79 diluted earnings per share New contract awards of $2.1 billion, resulting in backlog of $48 bill ...