HII Reports First Quarter 2026 Results
NEWPORT NEWS, Va., May 05, 2026 (GLOBE NEWSWIRE) -- HII (NYSE: HII) today reported results for the first quarter of fiscal 2026.
Highlights
First Quarter Results
First quarter 2026 revenues of $3.1 billion were up 13.4% from the first quarter of 2025, driven by growth at Newport News Shipbuilding, Ingalls Shipbuilding and Mission Technologies.
Operating income in the first quarter of 2026 was $155 million and operating margin was 5.0%, compared to $161 million and 5.9%, respectively, in the first quarter of 2025.
Segment operating income 2 in the first quarter of 2026 was $172 million and segment operating margin 2 was 5.6%, compared to $171 million and 6.3%, respectively, in the first quarter of 2025.
Net earnings in the first quarter of 2026 were $149 million, compared to $149 million in the first quarter of 2025. Diluted earnings per share in the quarter was $3.79, compared to $3.79 in the first quarter of 2025.
Net cash used in operating activities in the quarter was $390 million and free cash flow 2 was negative $461 million, compared to net cash used in operating activities of $395 million and free cash flow 2 of negative $462 million in the first quarter of 2025.
New contract awards in the first quarter of 2026 were $4.0 billion, bringing total backlog to 54.0 billion as of March 31, 2026.
“We made good progress on our 2026 operational initiatives in the first quarter. Shipbuilding throughput has continued to improve with meaningful year over year growth in the first quarter as our team remains focused on driving efficiency and expanding the industrial base network," said Chris Kastner, HII’s president and CEO.
¹The financial outlook, expectations and other forward looking statements provided by the company for 2026 and beyond reflect the company's judgment based on information available at the time of this release. Please see the "Forward-looking Statements" section in this release and our Form 10-Q for factors that may impact the company's ability to meet expectations.
²Non-GAAP measures. See Exhibit B for definitions and reconciliations.
Results of Operations
¹Non-GAAP measures that exclude non-segment factors affecting operating income. See Exhibit B for definitions and reconciliations.
Segment Operating Results
Ingalls Shipbuilding
Ingalls Shipbuilding revenues for the first quarter of 2026 were $725 million, an increase of $88 million, or 13.8%, from the same period in 2025, primarily driven by higher volumes in surface combatants.
Ingalls Shipbuilding segment operating income for the first quarter of 2026 was $49 million, an increase of $3 million from the same period in 2025. Segment operating margin in the first quarter of 2026 was 6.8%, compared to 7.2% in the same period last year. The increase in segment operating income was driven by higher volumes in surface combatants, partially offset by lower performance in amphibious assault ships.
Key Ingalls Shipbuilding milestone for the quarter:
Newport News Shipbuilding
Newport News Shipbuilding revenues for the first quarter of 2026 were $1.7 billion, an increase of $269 million, or 19.3%, from the same period in 2025. The increase was primarily driven by higher volumes in aircraft carriers, submarines and naval nuclear support services.
Newport News Shipbuilding segment operating income for the first quarter of 2026 was $88 million, an increase of $3 million from the same period in 2025. Segment operating margin in the first quarter of 2026 was 5.3% compared to 6.1% in the same period last year. The increase in segment operating income was primarily driven by the higher volumes described above, partially offset by contract adjustments and incentives in the first quarter of 2025 on the Virginia-class submarine program, as well as lower performance in aircraft carrier construction.
Key Newport News Shipbuilding milestones for the quarter:
Mission Technologies
Mission Technologies revenues for the first quarter of 2026 were $748 million, an increase of $13 million, or 1.8%, from the same period in 2025. The increases were primarily due to higher volumes in All-Domain Operations, Unmanned Systems, and Global Security, partially offset by lower volumes in Warfare Systems.
Mission Technologies segment operating income for the first quarter of 2026 was $35 million, a decrease of $5 million from the same period in 2025. Segment operating margin in the first quarter of 2026 was 4.7%, compared to 5.4% in the same period last year. The decrease in segment operating income was primarily due to lower equity income from nuclear and environmental joint ventures, partially offset by higher performance in Warfare Systems.
Mission Technologies results included approximately $18 million of amortization of purchased intangible assets in the first quarter of 2026, compared to approximately $22 million in the same period last year.
Mission Technologies EBITDA margin 1 in the first quarter of 2026 was 7.8%, compared to 9.1% in the first quarter of 2025.
Key Mission Technologies milestones for the quarter:
¹Non-GAAP measures. See Exhibit B for definitions and reconciliations.
HII Financial Outlook 1
¹The financial outlook, expectations, and other forward-looking statements provided by the company for 2026 and beyond reflect the company's judgment based on the information available at the time of this release. Please see the "Forward-looking Statements" section in this release and our Form 10-Q for factors that may impact the company's ability to meet expectations.
²Medium term growth represents our expected compound annual growth rate over the next three to five years.
³Non-GAAP measures. See Exhibit B for definitions. In reliance upon Item 10(e)(1)(i)(B) of Regulation S-K, reconciliations of forward–looking GAAP and non–GAAP measures are not provided because of the unreasonable effort associated with providing such reconciliations due to the variability in the occurrence and the amounts of certain components of GAAP and non-GAAP measures. For the same reasons, we are unable to address the significance of the unavailable information, which could be material to future results.
⁴Outlook is based on current tax law. Variability exists based on how and when individual states conform to recent federal tax law changes.
About HII
HII is America’s largest shipbuilder, delivering the world’s most powerful ships and all-domain mission technologies, including unmanned systems, to U.S. and allied defense customers. HII is the largest producer of unmanned underwater vehicles for the U.S. Navy and the world.
With a more than 140-year history of advancing U.S. national security, HII builds and integrates defense capabilities extending from the core fleet to C6ISR, AI/ML, EW and synthetic training. Headquartered in Virginia, HII’s workforce is 44,000 strong. For more information, visit www.HII.com.
Conference Call Information
HII will webcast its earnings conference call at 9 a.m. Eastern time today. A live audio broadcast of the conference call and supplemental presentation will be available on the investor relations page of the company’s website: www.HII.com. A replay of the call will be available on the website for a limited time.
Cautionary Statement Regarding Forward-Looking Statements and Projections
Statements in this earnings release and in our other filings with the SEC, as well as other statements we may make from time to time, other than statements of historical fact, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "guidance," "outlook," "predicts," "potential," "continue," and similar words or phrases or the negative of these words or phrases. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable when made, we cannot guarantee future results, levels of activity, performance, or achievements. There are a number of important factors that could cause our actual results to differ materially from the results anticipated by our forward-looking statements, which include, but are not limited to:
There may be other risks and uncertainties that we are unable to predict at this time or that we currently do not expect to have a material adverse effect on our business, and we undertake no obligation to update or revise any forward-looking statements. You should not place undue reliance on any forward-looking statements that we may make.
This release also contains non-GAAP financial measures and includes a GAAP reconciliation of these financial measures. Non-GAAP financial measures should not be construed as being more important than comparable GAAP measures.
Exhibit A: Financial Statements
HUNTINGTON INGALLS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)
HUNTINGTON INGALLS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
HUNTINGTON INGALLS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Exhibit B: Non-GAAP Measures Definitions & Reconciliations
This earnings release contains non-GAAP (accounting principles generally accepted in the United States of America) financial measures as defined by SEC Regulation G and indicated by a footnote in the text of this release. Definitions for the non-GAAP measures, and related reconciliations, are provided below. Because not all companies use identical definitions or calculations, our presentation of these measures may not be comparable to similarly titled measures of other companies.
Segment Operating Income and Segment Operating Margin. We internally manage our operations by reference to segment operating income and segment operating margin and use these measures to evaluate our core operating performance. We believe that segment operating income and segment operating margin reflect additional ways of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. These measures should be considered in addition to, and not as alternatives for, operating income and operating margin or any other performance measure presented in accordance with GAAP.
Segment operating income is defined as operating income for the relevant segment(s) before the Operating FAS/CAS Adjustment and non-current state income taxes.
Segment operating margin is defined as segment operating income as a percentage of sales and service revenues.
Shipbuilding operating margin, Mission Technologies EBITDA and Mission Technologies EBITDA margin. We use shipbuilding operating margin, Mission Technologies EBITDA and Mission Technologies EBITDA margin to evaluate our core operating performance. We believe these measures reflect additional ways of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. These measures should be considered in addition to, and not as alternatives for, operating income and operating margin or any other performance measure presented in accordance with GAAP.
Shipbuilding operating margin is defined as the combined segment operating income of our Newport News Shipbuilding segment and Ingalls Shipbuilding segment as a percentage of shipbuilding revenue. Shipbuilding revenue is the sum of revenues of our Newport News Shipbuilding segment and Ingalls Shipbuilding segment.
Mission Technologies EBITDA is defined as Mission Technologies segment operating income before interest expense, income taxes, depreciation, and amortization.
Mission Technologies EBITDA margin is defined as Mission Technologies EBITDA as a percentage of Mission Technologies revenues.
Free cash flow. We use free cash flow as a key operating metric in assessing the performance of our business and as a key performance measure in evaluating management performance and determining incentive compensation. We believe free cash flow is an important measure that may be useful to investors and other users of our financial statements because it provides insight into our current and period-to-period performance and our ability to generate cash from continuing operations. Free cash flow has limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, net income as a measure of our performance or net cash provided by operating activities as a measure of our liquidity.
Free cash flow is defined as net cash provided by (used in) operating activities less capital expenditures net of related grant proceeds.
In reliance upon Item 10(e)(1)(i)(B) of Regulation S-K, reconciliations of forward-looking GAAP and non-GAAP measures are not provided because of the unreasonable effort associated with providing such reconciliations due to the variability in the occurrence and the amounts of certain components of GAAP and non-GAAP measures. For the same reasons, we are unable to address the significance of the unavailable information, which could be material to future results.
Reconciliations of Segment Operating Income and Segment Operating Margin
Reconciliation of Free Cash Flow
Reconciliation of Mission Technologies EBITDA and EBITDA Margin
Contacts:
Brooke Hart (Media)
brooke.hart@hii-co.com
202-264-7108
Christie Thomas (Investors)
christie.thomas@hii-co.com
757-380-2104