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1. Company Snapshot

1.a. Company Description

Huntington Ingalls Industries, Inc.engages in designing, building, overhauling, and repairing military ships in the United States.It operates through three segments: Ingalls Shipbuilding, Newport News Shipbuilding, and Technical Solutions.


The company is involved in the design and construction of non-nuclear ships comprising amphibious assault ships; expeditionary warfare ships; surface combatants; and national security cutters for the U.S. Navy and U.S. Coast Guard.It also provides nuclear-powered ships, such as aircraft carriers and submarines, as well as refueling and overhaul, and inactivation services of ships.In addition, the company offers naval nuclear support services, including fleet services comprising design, construction, maintenance, and disposal activities for in-service the U.S. Navy nuclear ships; and maintenance services on nuclear reactor prototypes.


Further, it provides life-cycle sustainment services to the U.S. Navy fleet and other maritime customers; high-end information technology and mission-based solutions for Department of Defense (DoD), intelligence, and federal civilian customers; nuclear management and operations and environmental management services for the Department of Energy, DoD, state and local governments, and private sector companies; defense and federal solutions; and unmanned systems.Huntington Ingalls Industries, Inc.was founded in 1886 and is headquartered in Newport News, Virginia.

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1.b. Last Insights on HII

Huntington Ingalls Industries, Inc.'s recent performance was driven by strong revenue growth, strategic investments, and a solid backlog. The company's Q4 2025 revenue increased 8.2% year-over-year to $12.5 billion, with earnings per share (EPS) of $15.39. Awards totaled $16.9 billion in 2025. A surge in domestic shipbuilding demand, fueled by Trump-era policy shifts, has created a $22B opportunity for HII. The company's record backlog of $53.14B and strong Navy shipbuilding demand are key growth drivers. (Source: company's Q4 2025 earnings call)

1.c. Company Highlights

2. Huntington Ingalls Industries' Strong 2025 Performance Driven by Shipbuilding Throughput and Mission Technologies Growth

Huntington Ingalls Industries reported a robust financial performance in 2025, with revenues increasing 8.2% to a level that reflected the company's strong shipbuilding throughput and growth in Mission Technologies. The company's earnings per share (EPS) came in at $4.04, beating analyst estimates of $3.72. The operating margin also improved, driven by higher volumes in surface combatants and amphibious assault ships at Ingalls Shipbuilding, as well as favorable contract adjustments in the Virginia class submarine program at Newport News Shipbuilding. The company's free cash flow was $800 million, above the guidance range, with a significant contribution from careful working capital management and beneficial cash tax impacts.

Publication Date: Feb -08

📋 Highlights
  • Shipbuilding Throughput Growth: 14% year-over-year increase in shipbuilding throughput driven by workforce expansion (6,600+ hires in 2025) and operational efficiency.
  • Financial Performance: 16% Q4 revenue growth and 8.2% full-year revenue increase, with free cash flow of $800M in 2025 exceeding guidance.
  • Record Mission Technologies Revenue: Segment achieved $3.0B+ in top-line growth, including 750th Remus AUV delivery and high-energy laser weapon development.
  • Capital Expenditure Plan: 2026 CapEx of $500M–$600M (4–5% of sales) to expand distributed shipbuilding and increase outsourcing by 30%.
  • 2026 Guidance: Shipbuilding revenue target of $2.3B with 5.5% operating margin, while Mission Technologies aims for $700–$750M revenue and 4–4.5% margin.

Segment Performance Highlights

The company's Shipbuilding segment saw significant growth, with Ingalls' revenues increasing 11.2% in 2025, driven by higher volumes in surface combatants and amphibious assault ships. Mission Technologies also delivered record revenues of over $3 billion, driven by the development of advanced technologies such as the US Army's high-energy laser weapon system and the Remus autonomous underwater vehicle.

Operational Initiatives and Outlook

The company is focused on driving future growth through operational initiatives, including a 15% increase in throughput target for 2026 and plans to hire over 6,600 shipbuilders in 2026. The company is also investing in strategic capital expenditures, with expected capital expenditures to be approximately 4% to 5% of sales, or $500 million to $600 million. The guidance for 2026 revenues is approximately $2.3 billion in shipbuilding and $700 to $750 million in Mission Technologies, with operating margins near 5.5% and 4% to 4.5%, respectively.

Valuation and Growth Prospects

With a P/E Ratio of 25.84 and an EV/EBITDA ratio of 14.85, the market is pricing in a certain level of growth for Huntington Ingalls Industries. Analysts estimate next year's revenue growth at 6.0%, which is in line with the company's medium-term top-line CAGR target of approximately 6%. The company's ROE of 12.28% and ROIC of 5.08% indicate a strong ability to generate returns on equity and invested capital. The dividend yield of 1.37% and free cash flow yield of 6.8% also provide a relatively attractive return for investors.

3. NewsRoom

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HII Teams with GrayMatter Robotics to Integrate Physical AI into Manned and Unmanned Shipbuilding

Apr -07

Source: globenewswire.com

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Former Sen. Sam Nunn Visits Ingalls Shipbuilding for Update on His Namesake Destroyer

Apr -03

Source: globenewswire.com

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HII Redelivers USS New Jersey (SSN 796) from Post-Shakedown Availability at Newport News Shipbuilding

Apr -03

Source: globenewswire.com

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HII's Ingalls Shipbuilding Launches Guided Missile Destroyer George M. Neal (DDG 131)

Apr -01

Source: globenewswire.com

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HII and GrayMatter Robotics to Advance Shipbuilding with Physical AI

Mar -30

Source: globenewswire.com

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Pallas Capital Advisors LLC Buys 1,797 Shares of Huntington Ingalls Industries, Inc. $HII

Mar -30

Source: defenseworld.net

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Comparing Huntington Ingalls Industries (NYSE:HII) and ParaZero Technologies (NASDAQ:PRZO)

Mar -29

Source: defenseworld.net

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Will President Trump Put a Railgun on a New Battleship? (And Who Will Build It If He Does?)

Mar -29

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.69%)

6. Segments

Newport News

Expected Growth: 3.5%

Newport News' 3.5% growth is driven by increasing demand for nuclear-powered aircraft carriers, steady revenue from submarine maintenance, and growing investments in shipyard infrastructure. Additionally, the segment benefits from a strong backlog of contracts, including the construction of the USS Enterprise (CVN-80) and the refueling and complex overhaul of the USS George Washington (CVN-73).

Ingalls

Expected Growth: 4.2%

Ingalls' 4.2% growth driven by increasing demand for amphibious assault ships, such as LPD-17 and LHA-6, and continued investment in nuclear-powered aircraft carriers. Additionally, the company's focus on cost savings initiatives, improved operational efficiency, and a strong backlog of orders contribute to its growth momentum.

Mission Technologies

Expected Growth: 3.8%

Mission Technologies' 3.8% growth is driven by increasing demand for cybersecurity and intelligence services, expansion of its cloud-based solutions, and growing investments in unmanned systems and autonomous technologies. Additionally, the segment benefits from its diversified customer base, including the U.S. Department of Defense and federal civilian agencies.

Intersegment Eliminations

Expected Growth: 0.0%

Huntington Ingalls Industries' Intersegment Eliminations growth rate of 0.0% is driven by the absence of significant transactions between its segments, including Ingalls Shipbuilding, Newport News Shipbuilding, and Technical Solutions. This lack of intersegment activity is due to the company's focus on external customer sales, resulting in minimal eliminations.

7. Detailed Products

Nuclear-Powered Aircraft Carriers

Design, construction, and maintenance of nuclear-powered aircraft carriers for the US Navy

Amphibious Assault Ships

Design, construction, and maintenance of amphibious assault ships for the US Navy

Surface Combatants

Design, construction, and maintenance of surface combatants, including destroyers and cruisers, for the US Navy

Submarines

Design, construction, and maintenance of submarines for the US Navy

Unmanned Undersea Vehicles (UUVs)

Design, development, and production of UUVs for the US Navy

Cybersecurity and IT Services

Providing cybersecurity, IT, and engineering services to the US government and commercial customers

Nuclear and Environmental Services

Providing nuclear operations, maintenance, and decommissioning services, as well as environmental remediation services

Technical Solutions

Providing engineering, design, and technical services to the US government and commercial customers

8. Huntington Ingalls Industries, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Huntington Ingalls Industries, Inc. is medium due to the presence of alternative shipbuilding companies and the ability of customers to switch to other providers.

Bargaining Power Of Customers

The bargaining power of customers for Huntington Ingalls Industries, Inc. is low due to the company's strong relationships with the US Navy and other government agencies, which provides a stable source of revenue.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Huntington Ingalls Industries, Inc. is medium due to the company's dependence on a few key suppliers for critical components and materials.

Threat Of New Entrants

The threat of new entrants for Huntington Ingalls Industries, Inc. is low due to the high barriers to entry in the shipbuilding industry, including the need for significant capital investment and specialized expertise.

Intensity Of Rivalry

The intensity of rivalry for Huntington Ingalls Industries, Inc. is high due to the competitive nature of the shipbuilding industry, with several established players vying for contracts and market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 39.51%
Debt Cost 4.45%
Equity Weight 60.49%
Equity Cost 6.95%
WACC 5.96%
Leverage 65.31%

11. Quality Control: Huntington Ingalls Industries, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Huntington Ingalls

A-Score: 5.8/10

Value: 4.5

Growth: 4.2

Quality: 5.1

Yield: 4.0

Momentum: 10.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Curtiss-Wright

A-Score: 5.1/10

Value: 1.2

Growth: 6.1

Quality: 6.9

Yield: 0.0

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Woodward

A-Score: 5.1/10

Value: 0.9

Growth: 6.9

Quality: 6.6

Yield: 0.0

Momentum: 9.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Textron

A-Score: 4.9/10

Value: 4.7

Growth: 5.9

Quality: 5.1

Yield: 0.0

Momentum: 5.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
BWXT

A-Score: 4.9/10

Value: 0.9

Growth: 6.3

Quality: 5.4

Yield: 2.0

Momentum: 9.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Axon Enterprise

A-Score: 3.8/10

Value: 0.0

Growth: 9.6

Quality: 5.2

Yield: 0.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

411.35$

Current Price

411.35$

Potential

-0.00%

Expected Cash-Flows