Huntington Ingalls Industries (NYSE:HII) Issues Quarterly Earnings Results, Beats Expectations By $1.12 EPS

Key Points

• HII beat quarterly expectations: EPS was $5.48 versus the $4.36 consensus, while revenue rose 10.8% year over year to $3.54 billion.
• Backlog and outlook strengthened: Quarterly awards reached $32.4 billion, lifting backlog to $86.2 billion, and the company raised its 2026 shipbuilding revenue outlook to $10.5 billion–$10.7 billion.
• Shares rallied and the dividend increased: HII stock rose 13.6% following the results, while the quarterly dividend was raised to $1.41, or $5.64 annually.

Huntington Ingalls Industries (NYSE:HII - Get Free Report) released its earnings results on Thursday. The aerospace company reported $5.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.36 by $1.12, FiscalAI reports. The firm had revenue of $3.54 billion during the quarter, compared to analyst estimates of $3.38 billion. Huntington Ingalls Industries had a net margin of 5.01% and a return on equity of 12.89%. The business's revenue was up 10.8% on a year-over-year basis. During the same quarter last year, the business earned $3.68 EPS.

Here are the key takeaways from Huntington Ingalls Industries' conference call:

• Record results and raised shipbuilding revenue outlook: Third-quarter sales reached $3.5 billion and diluted EPS was $5.48, while shipbuilding revenue guidance increased to $10.5 billion–$10.7 billion for 2026. The company maintained its 6%–6.5% shipbuilding operating-margin outlook.
• Exceptional contract awards expanded backlog: HII booked $32.4 billion of awards in the quarter, lifting backlog to $86.2 billion; the figures exclude the $5.1 billion CVN-75 refueling and complex overhaul contract, which will be recognized in the fourth quarter.
• Mission Technologies momentum improved: The segment delivered $792 million in revenue, a 2.4x book-to-bill ratio, and 9% operating margins. HII raised its full-year Mission Technologies operating-margin expectation to approximately 6% and EBITDA-margin expectation to approximately 9%, supported by awards including the $2.2 billion STINGRAI program and new unmanned-systems contracts.
• Shipbuilding execution remains mixed: Throughput was up approximately 9% year to date, but below the prior 15% target because Ingalls faced a slower labor recovery and is managing three ship deliveries and testing activities. Management said hiring and apprentice enrollment are improving, with more than 6,000 shipbuilders hired year to date.
• Long-term cash generation and margin expansion remain priorities: HII expects incremental shipbuilding-margin improvement in 2027 and reiterated cumulative 2026–2027 free cash flow of $1.2 billion–$1.3 billion. Approximately 90% of expected shipbuilding revenue through 2030 is already under contract, providing substantial forward visibility.

Huntington Ingalls Industries Trading Up 13.6%

HII traded up $37.95 during trading hours on Thursday, reaching $317.21. The company's stock had a trading volume of 1,705,525 shares, compared to its average volume of 532,636. The stock has a market cap of $12.50 billion, a PE ratio of 18.90, a P/E/G ratio of 1.02 and a beta of 0.21. Huntington Ingalls Industries has a fifty-two week low of $255.35 and a fifty-two week high of $460.00. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.23 and a quick ratio of 1.14. The business's 50-day moving average is $277.60 and its 200-day moving average is $336.87.

Huntington Ingalls Industries Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 11th. Investors of record on Friday, November 27th will be issued a $1.41 dividend. This is a boost from Huntington Ingalls Industries's previous quarterly dividend of $1.38. This represents a $5.64 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date is Friday, November 27th. Huntington Ingalls Industries's payout ratio is currently 33.61%.

Analyst Upgrades and Downgrades

Several brokerages have commented on HII. Weiss Ratings upgraded shares of Huntington Ingalls Industries from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, August 31st. Citigroup upped their price target on shares of Huntington Ingalls Industries from $349.00 to $379.00 and gave the company a "buy" rating in a report on Friday, July 31st. Wolfe Research upgraded Huntington Ingalls Industries from a "peer perform" rating to an "outperform" rating and set a $364.00 price objective for the company in a research note on Friday, July 31st. Wells Fargo & Company boosted their price target on Huntington Ingalls Industries from $325.00 to $340.00 and gave the company an "equal weight" rating in a report on Tuesday, August 4th. Finally, TD Cowen lowered their price objective on Huntington Ingalls Industries from $360.00 to $340.00 and set a "buy" rating on the stock in a research report on Friday, October 9th. Five equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $361.75.

Insider Transactions at Huntington Ingalls Industries

In other news, CEO Christopher Kastner sold 13,070 shares of the stock in a transaction on Monday, August 10th. The stock was sold at an average price of $324.92, for a total transaction of $4,246,704.40. Following the completion of the transaction, the chief executive officer directly owned 11,224 shares in the company, valued at approximately $3,646,902.08. This represents a 53.80% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.80% of the stock is currently owned by company insiders.

More Huntington Ingalls Industries News

Here are the key news stories impacting Huntington Ingalls Industries this week:

• Positive Sentiment: Q3 earnings beat expectations. HII reported adjusted EPS of $5.48, up from $3.68 a year earlier and ahead of the roughly $4.36–$4.41 analyst consensus. Revenue rose 10.8% year over year to $3.54 billion, exceeding estimates of approximately $3.38 billion. Huntington Ingalls Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Profitability and cash flow improved. Operating margin expanded by 180 basis points to 7.4%, helped by the roll-off of legacy contracts and better execution, particularly at Newport News Shipbuilding. Quarterly free cash flow was reportedly about twice net income, strengthening the quality of the earnings beat. Why Huntington Ingalls Stock Popped on Thursday
• Positive Sentiment: Visibility remains high and the outlook was raised. Approximately 90% of shipbuilding revenue is covered by contracts through 2030, while higher shipbuilding volumes, contract awards and demand for unmanned maritime systems support future revenue. Huntington Ingalls Soars on Earnings Beat
• Positive Sentiment: Unmanned-systems momentum adds a growth angle. HII highlighted production progress on ROMULUS unmanned surface vessels for the U.S. Navy, reinforcing its position in autonomous maritime capabilities. HII Celebrates ROMULUS Production Progress
• Neutral Sentiment: Risks could limit further upside. Analysts noted that defense-spending constraints and political gridlock in Washington may restrict longer-term growth despite secure backlog and improved contract mix, leading to a more cautious Hold view. Huntington Ingalls: Improving Contract Mix, but Looming Gridlock Limits Upside

About Huntington Ingalls Industries

Huntington Ingalls Industries, Inc NYSE: HII is an American defense company that designs, builds, maintains and modernizes ships for the U.S. Navy and other government customers. Its shipbuilding activities include nuclear-powered aircraft carriers, submarines, amphibious assault ships, destroyers and other surface vessels, along with fleet sustainment and modernization services.

HII operates through its Newport News Shipbuilding and Ingalls Shipbuilding divisions. Newport News Shipbuilding is involved in the construction and maintenance of nuclear-powered aircraft carriers and submarines, while Ingalls Shipbuilding builds surface combatants and amphibious ships.

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