We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
HII Q1 Earnings Surpass Estimates, Revenues Increase Y/Y
Read MoreHide Full Article
Key Takeaways
HII's Q1 EPS of $3.79 beat estimates as revenues rose 13.4% to $3.10B.
Higher volumes in carriers, submarines and naval nuclear support services drove results.
Newport News and Ingalls grew sales; Mission Technologies margins dipped as the 2026 outlook held.
Huntington Ingalls Industries, Inc. (HII - Free Report) posted first-quarter 2026 earnings of $3.79 per share, matching the year-ago level and topping the Zacks Consensus Estimate of $3.70 by 2.4%.
Total Revenues
Quarterly revenues came in at $3.10 billion, up 13.4% year over year and ahead of the consensus mark of $3.02 billion by 2.7%.
The quarter reflected higher volumes across the business, led by aircraft carrier, submarine and naval nuclear support services work.
HII also booked $4.0 billion of new contract awards in the period, lifting total backlog to $54.0 billion as of March 31, 2026.
Huntington Ingalls Industries, Inc. Price, Consensus and EPS Surprise
Huntington Ingalls reported segmental operating income of $172 million compared with $171 million in the first quarter of 2025. The segmental operating margin contracted 70 basis points from the prior-year figure to 5%.
HII Segmental Performance
Newport News Shipbuilding remained the largest contributor in the quarter. Segment revenues rose to $1.67 billion from $1.40 billion a year earlier, driven by higher volumes in aircraft carriers, submarines and naval nuclear support services. Segment operating income edged up to $88 million from $85 million, while segment operating margin declined to 5.3% from 6.1%, reflecting contract adjustments and lower performance in aircraft carrier construction.
Ingalls Shipbuilding delivered solid growth as well. Segment revenues increased to $725 million from $637 million, primarily on higher surface combatant volumes. Segment operating income improved to $49 million from $46 million, but segment operating margin narrowed to 6.8% from 7.2% as lower performance in amphibious assault ships partially offset the benefits of stronger volume.
Mission Technologies posted steadier gains. Segment revenues were $748 million compared with $735 million a year ago, supported by higher volumes in All-Domain Operations, Unmanned Systems and Global Security, partially offset by lower volumes in Warfare Systems. Segment operating income declined to $35 million from $40 million and segment operating margin eased to 4.7% from 5.4%, mainly due to lower equity income from nuclear and environmental joint ventures.
Financial Update
Cash flow remained seasonally pressured in the first quarter. Net cash used in operating activities was $390 million and free cash flow was negative $461 million, essentially unchanged from the prior-year period. Net capital expenditures totaled $71 million in the quarter, including $74 million of capex additions and $3 million of grant proceeds.
On capital deployment, HII paid $54 million in dividends and did not repurchase shares during the quarter. The company ended March 2026, with $216 million in cash and cash equivalents.
2026 Guidance
Management reaffirmed its full-year expectations and maintained its medium-term growth framework. For 2026, HII continues to project shipbuilding revenues of $9.70-$9.90 billion with a shipbuilding operating margin of 5.5-6.5%.
Mission Technologies revenues are still expected at $3.0-$3.2 billion, with segment operating margin around 5% and EBITDA margin of 8.4-8.6%.
The company also reiterated free cash flow guidance of $500-$600 million and capital expenditures of 4-5% of sales.
RTX Corporation’s (RTX - Free Report) first-quarter 2026 adjusted earnings per share of $1.78 beat the Zacks Consensus Estimate of $1.52 by 17%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.47.
Quarterly revenues came in at $22.08 billion, up 8.7% from $20.31 billion in the year-ago period. Sales also beat the consensus mark of $21.56 billion by 2.43%.
Northrop Grumman Corporation (NOC - Free Report) reported first-quarter 2026 adjusted earnings of $6.14 per share, which beat the Zacks Consensus Estimate of $6.08 by 1%. The bottom line also improved 1.3% from the year-ago quarter’s level of $6.06.
NOC’s total sales of $9.88 billion in the first quarter beat the Zacks Consensus Estimate of $9.79 billion by 1%. The top line also improved 4.4% from $9.47 billion reported in the year-ago quarter.
The Boeing Company (BA - Free Report) incurred an adjusted loss of 20 cents per share in the first quarter of 2026, narrower than the Zacks Consensus Estimate of a loss of 95 cents. The bottom line improved from the year-ago quarter’s reported loss of 49 cents.
Revenues amounted to $22.22 billion, which outpaced the Zacks Consensus Estimate of $21.87 billion by 3.5%. The top line also surged 14% from the year-ago quarter’s reported figure of $19.5 billion.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
HII Q1 Earnings Surpass Estimates, Revenues Increase Y/Y
Key Takeaways
Huntington Ingalls Industries, Inc. (HII - Free Report) posted first-quarter 2026 earnings of $3.79 per share, matching the year-ago level and topping the Zacks Consensus Estimate of $3.70 by 2.4%.
Total Revenues
Quarterly revenues came in at $3.10 billion, up 13.4% year over year and ahead of the consensus mark of $3.02 billion by 2.7%.
The quarter reflected higher volumes across the business, led by aircraft carrier, submarine and naval nuclear support services work.
HII also booked $4.0 billion of new contract awards in the period, lifting total backlog to $54.0 billion as of March 31, 2026.
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 $172 million compared with $171 million in the first quarter of 2025. The segmental operating margin contracted 70 basis points from the prior-year figure to 5%.
HII Segmental Performance
Newport News Shipbuilding remained the largest contributor in the quarter. Segment revenues rose to $1.67 billion from $1.40 billion a year earlier, driven by higher volumes in aircraft carriers, submarines and naval nuclear support services. Segment operating income edged up to $88 million from $85 million, while segment operating margin declined to 5.3% from 6.1%, reflecting contract adjustments and lower performance in aircraft carrier construction.
Ingalls Shipbuilding delivered solid growth as well. Segment revenues increased to $725 million from $637 million, primarily on higher surface combatant volumes. Segment operating income improved to $49 million from $46 million, but segment operating margin narrowed to 6.8% from 7.2% as lower performance in amphibious assault ships partially offset the benefits of stronger volume.
Mission Technologies posted steadier gains. Segment revenues were $748 million compared with $735 million a year ago, supported by higher volumes in All-Domain Operations, Unmanned Systems and Global Security, partially offset by lower volumes in Warfare Systems. Segment operating income declined to $35 million from $40 million and segment operating margin eased to 4.7% from 5.4%, mainly due to lower equity income from nuclear and environmental joint ventures.
Financial Update
Cash flow remained seasonally pressured in the first quarter. Net cash used in operating activities was $390 million and free cash flow was negative $461 million, essentially unchanged from the prior-year period. Net capital expenditures totaled $71 million in the quarter, including $74 million of capex additions and $3 million of grant proceeds.
On capital deployment, HII paid $54 million in dividends and did not repurchase shares during the quarter. The company ended March 2026, with $216 million in cash and cash equivalents.
2026 Guidance
Management reaffirmed its full-year expectations and maintained its medium-term growth framework. For 2026, HII continues to project shipbuilding revenues of $9.70-$9.90 billion with a shipbuilding operating margin of 5.5-6.5%.
Mission Technologies revenues are still expected at $3.0-$3.2 billion, with segment operating margin around 5% and EBITDA margin of 8.4-8.6%.
The company also reiterated free cash flow guidance of $500-$600 million and capital expenditures of 4-5% of sales.
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.
Recent Defense Releases
RTX Corporation’s (RTX - Free Report) first-quarter 2026 adjusted earnings per share of $1.78 beat the Zacks Consensus Estimate of $1.52 by 17%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.47.
Quarterly revenues came in at $22.08 billion, up 8.7% from $20.31 billion in the year-ago period. Sales also beat the consensus mark of $21.56 billion by 2.43%.
Northrop Grumman Corporation (NOC - Free Report) reported first-quarter 2026 adjusted earnings of $6.14 per share, which beat the Zacks Consensus Estimate of $6.08 by 1%. The bottom line also improved 1.3% from the year-ago quarter’s level of $6.06.
NOC’s total sales of $9.88 billion in the first quarter beat the Zacks Consensus Estimate of $9.79 billion by 1%. The top line also improved 4.4% from $9.47 billion reported in the year-ago quarter.
The Boeing Company (BA - Free Report) incurred an adjusted loss of 20 cents per share in the first quarter of 2026, narrower than the Zacks Consensus Estimate of a loss of 95 cents. The bottom line improved from the year-ago quarter’s reported loss of 49 cents.
Revenues amounted to $22.22 billion, which outpaced the Zacks Consensus Estimate of $21.87 billion by 3.5%. The top line also surged 14% from the year-ago quarter’s reported figure of $19.5 billion.