Huntington Ingalls Industries, Inc. (HII) stands as a prominent American enterprise specializing in the comprehensive lifecycle management of military vessels, encompassing their ...
Huntington Ingalls Industries, Inc. (HII) is a prominent American enterprise that stands as the nation's largest military shipbuilding company, with a rich heritage dating back to 1886. Headquartered in Newport News, Virginia, HII operates through three core divisions: Ingalls Shipbuilding, Newport News Shipbuilding, and Technical Solutions. The company is a ...Huntington Ingalls Industries, Inc. (HII) is a prominent American enterprise that stands as the nation's largest military shipbuilding company, with a rich heritage dating back to 1886. Headquartered in Newport News, Virginia, HII operates through three core divisions: Ingalls Shipbuilding, Newport News Shipbuilding, and Technical Solutions. The company is a primary builder of both nuclear-powered ships, such as aircraft carriers and submarines, and non-nuclear vessels including amphibious assault ships, surface combatants, and national security cutters for the U.S. Navy and Coast Guard. Beyond its shipbuilding expertise, HII provides comprehensive lifecycle support services, including design, construction, maintenance, refueling, and disposal for nuclear fleets, as well as technology solutions for defense, intelligence, and federal civilian agencies. The company employs more than 44,000 people and generated an annual revenue of approximately $13.2 billion. In 2023, HII reported a net income of around $679 million, with a market capitalization of roughly $12.8 billion. Key financial metrics show a price-to-earnings ratio near 19.3 and a dividend yield of about 1.7%, reflecting its stable performance and commitment to shareholders. The company is led by President and CEO Christopher D. Kastner, with Kirkland H. Donald serving as Chairman. HII's vision is to serve as America's seapower company, delivering powerful naval vessels and all-domain defense technologies to advance national security. With a strong emphasis on innovation and quality, HII continues to play a critical role in supporting the U.S. military and reinforcing its mission to protect the nation.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$12.5B
+8.2%
+10.3%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$605.0M
+10.0%
+39.6%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+12.7%
+1.0%
+0.4%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+4.9%
+5.0%
+22.8%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+4.8%
+1.6%
+26.6%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$794.0M
+2953.8%
+109.3%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+6.4%
+2721.7%
+108.4%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
62.0%
-15.1%
-3.0%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.13x
+5.0%
+3.3%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Ladies and gentlemen, thank you for standing by, and welcome to the Second Quarter 26 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. If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. Please be advised that today's conference is being recorded. If you need further assistance, please press *1 on your telephone keypad. I would now like to hand the call over to Christie Thomas. Vice president of investor relations. Mrs. Thomas, you may begin.
Christie Thomas: Thank you, operator, and good morning, everyone. Welcome to the HII Second Quarter 26 Conference Call. Matters discussed on today's call that constitute forward-looking statements including our estimates regarding the company's outlook, involve risks and uncertainties and reflect the company's judgment based on information available at the time of this call. These risks and uncertainties may cause our actual results to differ materially. Additional information regarding these factors is contained in today's press release and the company's SEC filings. We will also refer to certain non-GAAP financial measures. For additional disclosures about these non-GAAP measures, including reconciliations to comparable GAAP measures, please see the slides that accompany this webcast which are available on the Investor Relations page of our website at ir.hii.com. On the call today are Christopher Douglas Kastner, President and Chief Executive Officer Brian D. Blanchette, Executive Vice President and President of Ingalls Shipbuilding and Thomas E. Stiehle, Executive Vice President and Chief Financial Officer. Now I will turn the call over to Christopher.
Christopher Douglas Kastner: Thanks, Christie. Good morning, everyone. This morning, we released our second quarter results which reflect our continued focus and progress on increasing throughput. And delivering ships and mission solutions to the nation's sailors, marines, warfighters. I will start today by providing the Q2 results, highlights from Newport News Shipbuilding and Mission Technologies, and an update on our operational initiatives. Brian D. Blanchette, president of Ingalls Shipbuilding, has joined me to discuss Ingalls updates and then Tim will provide more details on our financial performance and outlook. Now turning to our results, We reported second quarter sales of $3.4 billion and diluted earnings per share of $5.27 Shipbuilding sales were $2.7 billion 16% ahead year over year and reflect our fourth consecutive quarter of double digit growth. Given this momentum and our plans to deliver 5 ships over the next year, we are raising our 2026 shipbuilding revenue guidance to between $10.2 billion and $10.4 billion and our 2026 shipbuilding margin guidance to between 6% and 6.5%. At the same time, customer demand for our products and services remains …