Huntington Ingalls Industries (NYSE:HII) Announces Earnings Results, Beats Estimates By $0.09 EPS

Huntington Ingalls Industries (NYSE:HII) announced its earnings results on Tuesday. The aerospace company reported $3.79 EPS for the quarter, beating analysts’ consensus estimates of $3.70 by $0.09, Briefing.com reports. Huntington Ingalls Industries had a return on equity of 12.28% and a net margin of 4.85%.The company had revenue of $3.10 billion during the quarter, compared to analysts’ expectations of $3.02 billion. During the same period last year, the business posted $3.79 EPS. Huntington Ingalls Industries’s revenue for the quarter was up 13.4% on a year-over-year basis.

Here are the key takeaways from Huntington Ingalls Industries’ conference call:

• HII reported a strong Q1 with $3.1 billion in sales and diluted EPS of $3.79; shipbuilding revenue rose ~18% year-over-year and the company recorded $4 billion of contract awards in the quarter.
• Management reaffirmed 2026 guidance and is executing operational initiatives to boost shipyard throughput by roughly 15% for 2026, hiring 1,600+ shipbuilders and targeting a ~30% increase in outsourcing hours to expand capacity.
• Mission Technologies won positions on large multi-award programs (including the Advanced Technology Support and SHIELD contracts), secured a ~$500 million cyber contract, and is increasing investments in unmanned/autonomy (Odyssey software and autonomous vessels) with management expecting material growth over the next few years.
• Cash generation remains a near-term pressure point — Q1 free cash flow was negative $461 million, cash on hand was $216 million with total liquidity ~$1.9 billion, and management says it needs roughly $1 billion of FCF in H2 (Q2 FCF guide is wide at −$100M to +$100M) to hit the full-year target.
• Program and schedule risks persist — LHA‑8 testing issues and carrier equipment delivery delays required EAC adjustments, and the next Virginia‑class/Columbia‑class submarine contract award remains pending government approvals, any of which could pressure margins and cash timing.

Huntington Ingalls Industries Stock Down 9.6%

Shares of NYSE HII traded down $34.82 during midday trading on Tuesday, hitting $328.56. 455,291 shares of the company’s stock were exchanged, compared to its average volume of 538,227. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.13 and a quick ratio of 1.06. Huntington Ingalls Industries has a twelve month low of $215.04 and a twelve month high of $460.00. The company has a market cap of $12.89 billion, a PE ratio of 21.43, a P/E/G ratio of 1.46 and a beta of 0.29. The firm’s fifty day simple moving average is $404.59 and its 200-day simple moving average is $369.64.

Huntington Ingalls Industries Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 12th. Stockholders of record on Friday, May 29th will be given a dividend of $1.38 per share. This represents a $5.52 annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend is Friday, May 29th. Huntington Ingalls Industries’s dividend payout ratio (DPR) is 35.91%.

Insider Activity

In other news, EVP Eric D. Chewning sold 1,700 shares of the firm’s stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $433.44, for a total transaction of $736,848.00. Following the sale, the executive vice president owned 1,949 shares of the company’s stock, valued at approximately $844,774.56. This trade represents a 46.59% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Chad N. Boudreaux sold 4,400 shares of the firm’s stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $422.45, for a total value of $1,858,780.00. Following the sale, the vice president directly owned 20,360 shares in the company, valued at $8,601,082. This trade represents a 17.77% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.80% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Compound Planning Inc. acquired a new position in Huntington Ingalls Industries during the fourth quarter worth approximately $539,000. Corient Private Wealth LLC increased its position in Huntington Ingalls Industries by 53.7% during the fourth quarter. Corient Private Wealth LLC now owns 21,368 shares of the aerospace company’s stock worth $7,267,000 after buying an additional 7,464 shares during the period. First Commonwealth Financial Corp PA increased its holdings in shares of Huntington Ingalls Industries by 5.3% in the fourth quarter. First Commonwealth Financial Corp PA now owns 2,275 shares of the aerospace company’s stock valued at $774,000 after purchasing an additional 114 shares during the period. Mercer Global Advisors Inc. ADV boosted its holdings in shares of Huntington Ingalls Industries by 182.9% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 20,408 shares of the aerospace company’s stock valued at $6,940,000 after acquiring an additional 13,195 shares in the last quarter. Finally, Beacon Pointe Advisors LLC boosted its holdings in shares of Huntington Ingalls Industries by 17.1% in the fourth quarter. Beacon Pointe Advisors LLC now owns 865 shares of the aerospace company’s stock valued at $294,000 after acquiring an additional 126 shares in the last quarter. Institutional investors and hedge funds own 90.46% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on HII. Sanford C. Bernstein restated a “market perform” rating and set a $421.00 target price on shares of Huntington Ingalls Industries in a report on Wednesday, February 11th. Wells Fargo & Company began coverage on Huntington Ingalls Industries in a report on Wednesday, April 1st. They set an “equal weight” rating and a $400.00 target price for the company. The Goldman Sachs Group raised their target price on Huntington Ingalls Industries from $384.00 to $425.00 and gave the company a “buy” rating in a report on Tuesday, January 20th. Bank of America upgraded Huntington Ingalls Industries from an “underperform” rating to a “neutral” rating and raised their target price for the company from $300.00 to $400.00 in a report on Thursday, February 12th. Finally, Wall Street Zen raised Huntington Ingalls Industries from a “buy” rating to a “strong-buy” rating in a research report on Saturday. Six analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, Huntington Ingalls Industries presently has an average rating of “Moderate Buy” and a consensus price target of $383.22.

About Huntington Ingalls Industries

Huntington Ingalls Industries (NYSE: HII) is America’s largest military shipbuilding company and a leading provider of professional services to the U.S. government. Headquartered in Newport News, Virginia, HII designs, constructs and maintains nuclear-powered aircraft carriers, submarines and other complex vessels for the U.S. Navy. The company’s products include nuclear aircraft carriers, Virginia-class and Columbia-class submarines, as well as amphibious assault ships, destroyers and cutters.

Established in 2011 as a spin-off from Northrop Grumman’s shipbuilding operations, HII traces its heritage to two historic builders: Newport News Shipbuilding, founded in the 19th century, and Ingalls Shipbuilding, founded in 1938.