Huntington Ingalls Q4 revenue rises 15.7% on shipbuilding throughput growth

Overview

• Shipbuilder's Q4 revenue rose 15.7% yr/yr, driven by growth across all segments

• Diluted EPS for Q4 increased 28.3% yr/yr

• Company achieved critical shipbuilding milestones, including submarine and destroyer deliveries

Outlook

• HII expects FY26 shipbuilding revenue between $9.7 bln and $9.9 bln

• Mission Technologies FY26 revenue projected between $3.0 bln and $3.2 bln

• Company anticipates FY26 free cash flow between $500 mln and $600 mln

Result Drivers

• SHIPBUILDING MILESTONES - Achieved critical shipbuilding milestones, including delivery of Virginia-class submarine Massachusetts and guided missile destroyer Ted Stevens

• THROUGHPUT GROWTH - Achieved ~14% shipbuilding throughput growth in 2025, targeting ~15% growth in 2026

• CAPITAL INVESTMENTS - Invested over $400 million in capital improvements in 2025 to support growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for Huntington Ingalls Industries Inc is $364.00, about 11.9% below its February 4 closing price of $413.14

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nGNX7xPMGv

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