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HII posted Q4 EPS of $4.04, up 28.3% year over year, beating estimates as revenues climbed 15.7%.
Newport News Shipbuilding generated 54.4% of sales, with segment revenues up 19.1% on submarines and carriers.
Huntington Ingalls produced $800M in free cash flow in 2025 and forecasts $500-$600M for 2026.
Huntington Ingalls Industries, Inc.’s (HII - Free Report) fourth-quarter 2025 earnings of $4.04 per share increased 28.3% from $3.15 in the prior-year quarter. The bottom line also beat the Zacks Consensus Estimate of $3.72 by 8.6%.
The year-over-year growth can be attributed to higher sales and operating income performance in the fourth quarter of 2025 compared with the fourth quarter of 2024.
For 2024, the company registered earnings of $15.39 per share, which beat the Zacks Consensus Estimate of $15.06. The bottom line increased from the year-ago reported figure of $13.96.
Total Revenues
Revenues for the quarter totaled $3.48 billion, which beat the Zacks Consensus Estimate of $3.06 billion by 13.7%. The top line also improved 15.7% from $3 billion in the year-ago quarter, driven by higher sales volume from all three of its major business segments.
In the fourth quarter, the Newport News Shipbuilding segment remained HII’s largest revenue contributor, accounting for 54.4% of total sales.
For 2025, HII’s revenues amounted to $12.48 billion, which beat the Zacks Consensus Estimate of $12.07 billion. The top line inched up 8.2% from the year-ago reported figure of $11.54 billion.
Huntington Ingalls Industries, Inc. Price, Consensus and EPS Surprise
Huntington Ingalls reported segmental operating income of $195 million compared with $103 million in the fourth quarter of 2025. The segmental operating margin expanded 218 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.
Segmental Performance
Newport News Shipbuilding: Revenues in this segment totaled $1.89 billion, up 19.1% year over year, primarily driven by higher volumes in submarines and aircraft carriers.
The segment’s operating income of $84 million increased 121.1% 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 $889 million, up 20.8% year over year. The improvement was driven by higher sales volumes from amphibious assault ships and surface combatants.
The segment reported operating earnings of $68 million, up 47.8% year over year, primarily driven by higher volumes in amphibious assault ships and surface combatants.
Mission Technologies: Revenues in this segment totaled $731 million, up 2.5% year over year, driven by higher volumes from warfare systems, global security and unmanned systems.
The segment reported operating earnings of $43 million, up 126.3% year over year, primarily driven by higher sales volumes.
Financial Update
Cash and cash equivalents, as of Dec. 31, 2025, totaled $774 million, down from $831 million recorded as of Dec. 31, 2024.
The long-term debt as of Dec. 31, 2025, totaled $2.70 billion, in line with the 2024-end level.
The cash generated by operating activities amounted to $1.20 billion compared with $0.39 billion a year ago.
HII’s free cash flow of $800 million as of Dec. 31, 2025, was much higher than the free cash flow of $40 million in the prior-year period.
2026 Guidance
The company expects its shipbuilding revenues to be in the range of $9.7-$9.8 billion.
For Mission Technologies, HII expects revenues in the range of $3.0-$3.2 billion.
The company projects capital expenditures to be in the band of 4-5% of sales.
The company projects free cash flow to be in the band of $500-$600 million.
The Boeing Company (BA - Free Report) incurred an adjusted loss of $1.91 per share in the fourth quarter of 2025, wider than the Zacks Consensus Estimate of a loss of 40 cents. However, the bottom line improved from the year-ago quarter’s reported loss of $5.90 per share.
Revenues amounted to $23.95 billion, which outpaced the consensus estimate of $21.73 billion by 8%. The top line also surged 57.1% from the year-ago quarter’s reported figure of $15.24 billion.
RTX Corporation’s (RTX - Free Report) fourth-quarter 2025 adjusted EPS of $1.55 beat the Zacks Consensus Estimate of $1.46 by 5.9%. The bottom line also improved 0.6% from the year-ago quarter’s level of $1.54.
RTX’s fourth-quarter sales totaled $24.24 billion, which surpassed the Zacks Consensus Estimate of $22.74 billion by 6.6%. The top line also surged a solid 12.1% from $21.62 billion recorded for the fourth quarter of 2024.
Northrop Grumman Corporation (NOC - Free Report) reported fourth-quarter 2025 adjusted earnings of $7.23 per share, which topped the Zacks Consensus Estimate of $7 by 3.3%. The bottom line also increased 13.1% from $6.39 registered in the prior-year quarter.
NOC’s total sales of $11.71 billion in the fourth quarter beat the consensus estimate of $11.62 billion by 0.8%. The top line also rose 9.6% from $10.69 billion reported in the year-ago quarter.
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Strong Newport News Shipbuilding Performance Drives HII's Q4 Results
Key Takeaways
Huntington Ingalls Industries, Inc.’s (HII - Free Report) fourth-quarter 2025 earnings of $4.04 per share increased 28.3% from $3.15 in the prior-year quarter. The bottom line also beat the Zacks Consensus Estimate of $3.72 by 8.6%.
The year-over-year growth can be attributed to higher sales and operating income performance in the fourth quarter of 2025 compared with the fourth quarter of 2024.
For 2024, the company registered earnings of $15.39 per share, which beat the Zacks Consensus Estimate of $15.06. The bottom line increased from the year-ago reported figure of $13.96.
Total Revenues
Revenues for the quarter totaled $3.48 billion, which beat the Zacks Consensus Estimate of $3.06 billion by 13.7%. The top line also improved 15.7% from $3 billion in the year-ago quarter, driven by higher sales volume from all three of its major business segments.
In the fourth quarter, the Newport News Shipbuilding segment remained HII’s largest revenue contributor, accounting for 54.4% of total sales.
For 2025, HII’s revenues amounted to $12.48 billion, which beat the Zacks Consensus Estimate of $12.07 billion. The top line inched up 8.2% from the year-ago reported figure of $11.54 billion.
Huntington Ingalls Industries, Inc. Price, Consensus and EPS Surprise
Huntington Ingalls Industries, Inc. price-consensus-eps-surprise-chart | Huntington Ingalls Industries, Inc. Quote
Operational Performance
Huntington Ingalls reported segmental operating income of $195 million compared with $103 million in the fourth quarter of 2025. The segmental operating margin expanded 218 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.
Segmental Performance
Newport News Shipbuilding: Revenues in this segment totaled $1.89 billion, up 19.1% year over year, primarily driven by higher volumes in submarines and aircraft carriers.
The segment’s operating income of $84 million increased 121.1% 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 $889 million, up 20.8% year over year. The improvement was driven by higher sales volumes from amphibious assault ships and surface combatants.
The segment reported operating earnings of $68 million, up 47.8% year over year, primarily driven by higher volumes in amphibious assault ships and surface combatants.
Mission Technologies: Revenues in this segment totaled $731 million, up 2.5% year over year, driven by higher volumes from warfare systems, global security and unmanned systems.
The segment reported operating earnings of $43 million, up 126.3% year over year, primarily driven by higher sales volumes.
Financial Update
Cash and cash equivalents, as of Dec. 31, 2025, totaled $774 million, down from $831 million recorded as of Dec. 31, 2024.
The long-term debt as of Dec. 31, 2025, totaled $2.70 billion, in line with the 2024-end level.
The cash generated by operating activities amounted to $1.20 billion compared with $0.39 billion a year ago.
HII’s free cash flow of $800 million as of Dec. 31, 2025, was much higher than the free cash flow of $40 million in the prior-year period.
2026 Guidance
The company expects its shipbuilding revenues to be in the range of $9.7-$9.8 billion.
For Mission Technologies, HII expects revenues in the range of $3.0-$3.2 billion.
The company projects capital expenditures to be in the band of 4-5% of sales.
The company projects free cash flow to be in the band of $500-$600 million.
Zacks Rank
Huntington Ingalls currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
The Boeing Company (BA - Free Report) incurred an adjusted loss of $1.91 per share in the fourth quarter of 2025, wider than the Zacks Consensus Estimate of a loss of 40 cents. However, the bottom line improved from the year-ago quarter’s reported loss of $5.90 per share.
Revenues amounted to $23.95 billion, which outpaced the consensus estimate of $21.73 billion by 8%. The top line also surged 57.1% from the year-ago quarter’s reported figure of $15.24 billion.
RTX Corporation’s (RTX - Free Report) fourth-quarter 2025 adjusted EPS of $1.55 beat the Zacks Consensus Estimate of $1.46 by 5.9%. The bottom line also improved 0.6% from the year-ago quarter’s level of $1.54.
RTX’s fourth-quarter sales totaled $24.24 billion, which surpassed the Zacks Consensus Estimate of $22.74 billion by 6.6%. The top line also surged a solid 12.1% from $21.62 billion recorded for the fourth quarter of 2024.
Northrop Grumman Corporation (NOC - Free Report) reported fourth-quarter 2025 adjusted earnings of $7.23 per share, which topped the Zacks Consensus Estimate of $7 by 3.3%. The bottom line also increased 13.1% from $6.39 registered in the prior-year quarter.
NOC’s total sales of $11.71 billion in the fourth quarter beat the consensus estimate of $11.62 billion by 0.8%. The top line also rose 9.6% from $10.69 billion reported in the year-ago quarter.