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Huntington Ingalls Q3 Earnings Beat Estimates, Revenues Rise Y/Y

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Key Takeaways

  • Huntington Ingalls' Q3 EPS of $3.68 topped estimates, rising from $2.56 a year earlier.
  • Quarterly revenue climbed 16.1% year over year to $3.19B, driven by gains across all segments.
  • HII raised 2025 free cash flow guidance to $550-$650M, reflecting stronger operational momentum.

Huntington Ingalls Industries, Inc.’s (HII - Free Report) third-quarter 2025 earnings of $3.68 per share declined 43.8% from $2.56 in the prior-year quarter. The bottom line also beat the Zacks Consensus Estimate of $3.29 by 11.9%.

The year-over-year growth can be attributed to higher sales and operating income performance in the third quarter of 2025 compared with the third quarter of 2024.

Total Revenues

Revenues for the quarter totaled $3.19 billion, which beat the Zacks Consensus Estimate of $2.94 billion by 8.4%. The top line also improved 16.1% from $2.75 billion in the year-ago quarter, driven by higher sales volume from all three of its major business segments.

Operational Performance

Huntington Ingalls reported segmental operating income of $179 million compared with $97 million in the third quarter of 2024. The segmental operating margin expanded 208 basis points from the prior-year figure to 5.6%.

The growth in operating income was primarily driven by strong operating performance at all three business segments of the company.

HII received orders worth $2 billion in the third quarter of 2025. As a result, its total backlog reached $55.7 billion as of Sept. 30, 2025, compared with $56.9 billion as of June 30, 2025.

Segmental Performance

Newport News Shipbuilding: Revenues in this segment totaled $1.62 billion, up 14.5% year over year, primarily driven by higher volumes in submarines and aircraft carriers.

The segment’s operating income of $80 million increased 433.3% year over year, primarily driven by unfavorable cumulative catch-up adjustments in the Virginia-class submarine program and aircraft carriers in 2024.

Ingalls Shipbuilding: Revenues totaled $828 million, up 24.7% year over year. The improvement was driven by higher sales volumes from surface combatants.

The segment reported operating earnings of $65 million, up 32.7% year over year, primarily driven by higher volumes in surface combatants.

Mission Technologies: Revenues in this segment totaled $787 million, up 11% year over year, driven by higher volumes from C5ISR and live, virtual, and constructive training solutions.

The segment reported operating earnings of $34 million, up 3% year over year, primarily driven by higher sales volumes.

Financial Update

Cash and cash equivalents, as of Sept. 30, 2025, totaled $312 million, significantly down from $831 million recorded as of Dec. 31, 2024.

The long-term debt as of June 30, 2025, totaled $2.70 billion, in line with the 2024-end level.

The cash generated by operating activities amounted to $546 million compared with $2 million a year ago.

HII’s free cash flow of $284 million as of June 30, 2025, was much higher than the free cash outflow of $237 million in the prior-year period.

2025 Guidance

The company now expects its shipbuilding revenues to be in the range of $9.0-$9.1 billion, narrower than its previous guidance of $8.9-$9.1 billion.

For Mission Technologies, HII now expects revenues in the range of $3.0-$3.1 billion, narrower than its previous guidance of $2.9-$3.1 billion.

The company now projects free cash flow to be in the band of $550-$650 million, up from the prior guidance of $500-$600 million.

Zacks Rank

Huntington Ingalls currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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