Huntington Ingalls Industries (NYSE:HII) Releases Earnings Results, Beats Expectations By $0.09 EPS

Key Points

• HII beat Q1 estimates with $3.79 EPS (vs. $3.70 expected) and $3.10 billion in revenue — revenue rose ~13.4% YoY, shipbuilding revenue was up ~18%, and the company secured $4 billion of contract awards in the quarter.
• Management reaffirmed 2026 guidance and is expanding capacity — hiring >1,600 shipbuilders, targeting ~15% higher shipyard throughput in 2026 and a ~30% increase in outsourcing hours — while Mission Technologies won large program positions and a ~$500 million cyber contract and is investing in unmanned/autonomy.
• Near-term cash generation and program timing are risks: Q1 free cash flow was negative $461 million, cash on hand was $216 million (total liquidity ~$1.9 billion), and management says it needs roughly $1 billion of FCF in H2 to hit the full-year target amid schedule/program risks that could pressure margins and cash timing.

Huntington Ingalls Industries (NYSE:HII - Get Free Report) issued its quarterly earnings results on Tuesday. The aerospace company reported $3.79 earnings per share for the quarter, topping analysts' consensus estimates of $3.70 by $0.09, Briefing.com reports. Huntington Ingalls Industries had a return on equity of 12.28% and a net margin of 4.85%.The business had revenue of $3.10 billion for the quarter, compared to analyst estimates of $3.02 billion. During the same quarter in the previous year, the firm earned $3.79 earnings per share. The company's revenue was up 13.4% on a year-over-year basis.

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

• HII reported a strong Q1 with $3.1 billion in sales and diluted EPS of $3.79; shipbuilding revenue rose ~18% year-over-year and the company recorded $4 billion of contract awards in the quarter.
• Management reaffirmed 2026 guidance and is executing operational initiatives to boost shipyard throughput by roughly 15% for 2026, hiring 1,600+ shipbuilders and targeting a ~30% increase in outsourcing hours to expand capacity.
• Mission Technologies won positions on large multi-award programs (including the Advanced Technology Support and SHIELD contracts), secured a ~$500 million cyber contract, and is increasing investments in unmanned/autonomy (Odyssey software and autonomous vessels) with management expecting material growth over the next few years.
• Cash generation remains a near-term pressure point — Q1 free cash flow was negative $461 million, cash on hand was $216 million with total liquidity ~$1.9 billion, and management says it needs roughly $1 billion of FCF in H2 (Q2 FCF guide is wide at −$100M to +$100M) to hit the full-year target.
• Program and schedule risks persist — LHA‑8 testing issues and carrier equipment delivery delays required EAC adjustments, and the next Virginia‑class/Columbia‑class submarine contract award remains pending government approvals, any of which could pressure margins and cash timing.

Huntington Ingalls Industries Stock Performance

Huntington Ingalls Industries stock traded down $34.82 during mid-day trading on Tuesday, hitting $328.56. The company had a trading volume of 455,291 shares, compared to its average volume of 538,227. The company has a current ratio of 1.13, a quick ratio of 1.06 and a debt-to-equity ratio of 0.53. Huntington Ingalls Industries has a 12-month low of $215.04 and a 12-month high of $460.00. The company's fifty day moving average is $404.59 and its 200-day moving average is $369.64. The company has a market capitalization of $12.89 billion, a price-to-earnings ratio of 21.43, a P/E/G ratio of 1.46 and a beta of 0.29.

Huntington Ingalls Industries Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 12th. Shareholders of record on Friday, May 29th will be given a $1.38 dividend. This represents a $5.52 annualized dividend and a yield of 1.7%. The ex-dividend date is Friday, May 29th. Huntington Ingalls Industries's dividend payout ratio is currently 35.91%.

Insider Activity at Huntington Ingalls Industries

In other news, VP Chad N. Boudreaux sold 4,400 shares of the company's stock in a transaction that occurred on Thursday, March 5th. The stock was sold at an average price of $422.45, for a total transaction of $1,858,780.00. Following the completion of the transaction, the vice president directly owned 20,360 shares of the company's stock, valued at $8,601,082. This represents a 17.77% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, EVP Eric D. Chewning sold 1,700 shares of the company's stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $433.44, for a total value of $736,848.00. Following the transaction, the executive vice president directly owned 1,949 shares of the company's stock, valued at approximately $844,774.56. The trade was a 46.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.80% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the business. AQR Capital Management LLC raised its stake in shares of Huntington Ingalls Industries by 85.0% during the 4th quarter. AQR Capital Management LLC now owns 1,085,619 shares of the aerospace company's stock worth $369,186,000 after buying an additional 498,690 shares during the period. Dimensional Fund Advisors LP raised its stake in Huntington Ingalls Industries by 1.2% in the 4th quarter. Dimensional Fund Advisors LP now owns 978,365 shares of the aerospace company's stock valued at $332,717,000 after purchasing an additional 11,743 shares during the last quarter. First Trust Advisors LP raised its stake in Huntington Ingalls Industries by 21.2% in the 4th quarter. First Trust Advisors LP now owns 812,609 shares of the aerospace company's stock valued at $276,344,000 after purchasing an additional 142,341 shares during the last quarter. Bank of America Corp DE grew its holdings in Huntington Ingalls Industries by 4.0% in the 2nd quarter. Bank of America Corp DE now owns 666,440 shares of the aerospace company's stock valued at $160,919,000 after buying an additional 25,737 shares in the last quarter. Finally, Sei Investments Co. grew its holdings in Huntington Ingalls Industries by 3.5% in the 3rd quarter. Sei Investments Co. now owns 481,615 shares of the aerospace company's stock valued at $138,663,000 after buying an additional 16,365 shares in the last quarter. 90.46% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on the company. Bank of America upgraded Huntington Ingalls Industries from an "underperform" rating to a "neutral" rating and boosted their price target for the stock from $300.00 to $400.00 in a research note on Thursday, February 12th. The Goldman Sachs Group upped their target price on Huntington Ingalls Industries from $384.00 to $425.00 and gave the company a "buy" rating in a research report on Tuesday, January 20th. Sanford C. Bernstein reiterated a "market perform" rating and issued a $421.00 target price on shares of Huntington Ingalls Industries in a research report on Wednesday, February 11th. Citigroup dropped their target price on Huntington Ingalls Industries from $465.00 to $441.00 and set a "buy" rating on the stock in a research report on Thursday, April 2nd. Finally, Wall Street Zen upgraded Huntington Ingalls Industries from a "buy" rating to a "strong-buy" rating in a research report on Saturday. Six analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $383.22.

Huntington Ingalls Industries Company Profile

Huntington Ingalls Industries NYSE: HII is America's largest military shipbuilding company and a leading provider of professional services to the U.S. government. Headquartered in Newport News, Virginia, HII designs, constructs and maintains nuclear-powered aircraft carriers, submarines and other complex vessels for the U.S. Navy. The company's products include nuclear aircraft carriers, Virginia-class and Columbia-class submarines, as well as amphibious assault ships, destroyers and cutters.

Established in 2011 as a spin-off from Northrop Grumman's shipbuilding operations, HII traces its heritage to two historic builders: Newport News Shipbuilding, founded in the 19th century, and Ingalls Shipbuilding, founded in 1938.

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