Huntington Ingalls beats Q1 earnings estimates, reaffirms guidance

Published 01/05/2025, 14:26
Huntington Ingalls beats Q1 earnings estimates, reaffirms guidance

NEWPORT NEWS, Virginia - Huntington Ingalls Industries (NYSE:HII) reported first-quarter earnings that surpassed analyst expectations, despite a slight dip in revenue. The shipbuilder and defense technology provider also reaffirmed its full-year 2025 outlook, sending shares up 0.6% in early trading.

HII posted adjusted earnings per share of $3.79 for Q1 2025, significantly beating the analyst consensus of $2.84. However, revenue fell 2.5% YoY to $2.7 billion, just shy of the $2.8 billion analysts had forecast.

The company’s net earnings came in at $149 million, down from $153 million in the same quarter last year. Operating income rose to $161 million from $154 million, with operating margin improving to 5.9% from 5.5% a year ago.

"We are encouraged by the pace of our operational initiatives in 2025," said Chris Kastner, HII’s president and CEO. "We expect throughput to ramp as we move through the year and, coupled with our cost savings initiatives, we expect steady improvement in support of our operational and financial goals."

HII’s backlog stood at approximately $48 billion as of March 31, 2025, bolstered by $2.1 billion in new contract awards during the quarter.

The company reaffirmed its fiscal year 2025 guidance, projecting shipbuilding revenue between $8.9 billion and $9.1 billion, with shipbuilding operating margin between 5.5% and 6.5%. Mission Technologies revenue is expected to range from $2.9 billion to $3.1 billion.

HII also maintained its free cash flow outlook of $300 million to $500 million for the full year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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