Huntington Ingalls Industries (NYSE:HII) Announces Earnings Results

Huntington Ingalls Industries (NYSE:HII) posted its quarterly earnings results on Thursday. The aerospace company reported $5.48 EPS for the quarter, beating analysts’ consensus estimates of $4.36 by $1.12, FiscalAI reports. Huntington Ingalls Industries had a return on equity of 13.95% and a net margin of 5.42%. The business had revenue of $3.54 billion for the quarter, compared to analysts’ expectations of $3.38 billion. During the same period last year, the firm earned $3.68 earnings per share. The business’s quarterly revenue was up 10.8% on a year-over-year basis.

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 0.3%

HII stock traded up $1.03 during midday trading on Friday, hitting $317.24. 753,913 shares of the company’s stock were exchanged, compared to its average volume of 577,477. The business has a 50-day simple moving average of $278.01 and a two-hundred day simple moving average of $336.11. The stock has a market capitalization of $12.50 billion, a PE ratio of 17.07, a P/E/G ratio of 1.18 and a beta of 0.21. Huntington Ingalls Industries has a 1-year low of $255.35 and a 1-year high of $460.00. The company has a current ratio of 1.26, a quick ratio of 1.14 and a debt-to-equity ratio of 0.49.

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 given a $1.41 dividend. The ex-dividend date is Friday, November 27th. This is a positive change from Huntington Ingalls Industries’s previous quarterly dividend of $1.38. This represents a $5.64 annualized dividend and a yield of 1.8%. Huntington Ingalls Industries’s dividend payout ratio (DPR) is currently 30.36%.

Huntington Ingalls Industries News Summary

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

• Positive Sentiment: Quarterly results significantly exceeded expectations. HII reported adjusted earnings of $5.48 per share, well above the roughly $4.36–$4.41 analyst consensus and up from $3.68 a year earlier. Revenue rose 10.8% year over year to $3.54 billion, beating estimates of approximately $3.38 billion. HII Reports Third Quarter 2026 Results
• Positive Sentiment: Shipbuilding execution and margins improved. Higher shipbuilding volumes, contract awards and operational improvements helped drive the earnings beat. Reports cited an approximately 180-basis-point expansion in operating margin to 7.4%, including benefits from legacy-contract roll-offs at Newport News Shipbuilding.
• Positive Sentiment: Revenue visibility remains strong. Approximately 90% of shipbuilding revenue is reportedly covered by contracts through 2030, supporting confidence in future sales. HII also highlighted demand for unmanned systems, including a new sea-drone program for the U.S. Navy, which could provide an additional growth avenue. Huntington Ingalls is building a new sea drone for the US Navy
• Positive Sentiment: Cash generation reinforced the earnings quality. Free cash flow reportedly reached roughly twice reported net income in the quarter, while management raised its shipbuilding outlook. Wall Street coverage remains generally supportive, with HII receiving a “Moderate Buy” consensus rating.
• Neutral Sentiment: Management appointed a new chief human resources officer. Renee Swan will become executive vice president and CHRO on Dec. 7, 2026, joining from Atmus Filtration Technologies. The change is strategically relevant but is unlikely to materially affect near-term earnings. HII Appoints Renee Swan as Executive Vice President and Chief Human Resources Officer
• Negative Sentiment: Political and funding risks limit the upside. Analysts noted that defense-spending constraints and potential congressional gridlock could slow contract growth despite HII’s secure backlog. The stock’s rally therefore reflects strong current execution, but investors may remain cautious about longer-term expansion.

Insider Buying and Selling at Huntington Ingalls Industries

In related news, CEO Christopher Kastner sold 13,070 shares of the business’s stock in a transaction on Monday, August 10th. The stock was sold at an average price of $324.92, for a total value of $4,246,704.40. Following the sale, the chief executive officer owned 11,224 shares in the company, valued at approximately $3,646,902.08. The trade was a 53.80% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.80% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on HII. Citigroup raised their target price 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. Wells Fargo & Company increased their price objective on shares of Huntington Ingalls Industries from $325.00 to $340.00 and gave the company an “equal weight” rating in a research note on Tuesday, August 4th. The Goldman Sachs Group reaffirmed a “conviction-buy” rating and set a $406.00 target price on shares of Huntington Ingalls Industries in a research report on Friday. Sanford C. Bernstein dropped their price objective on shares of Huntington Ingalls Industries from $327.00 to $304.00 and set a “market perform” rating on the stock in a report on Wednesday, October 14th. Finally, Weiss Ratings raised Huntington Ingalls Industries from a “hold (c)” rating to a “hold (c+)” rating in a research report on Monday, August 31st. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $359.38.

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.