HII Reports Third Quarter 2026 Results

Q: What were HII's third-quarter 2026 revenue and earnings?

HII reported $3.5 billion in revenue and $5.48 in diluted earnings per share for the third quarter of 2026. Revenue increased 10.8% year over year, while diluted earnings per share rose from $3.68. Net earnings were $217 million, compared with $145 million a year earlier.

Q: What changed in HII's FY26 financial outlook?

HII raised shipbuilding revenue guidance to $10.5–$10.7 billion from $10.2–$10.4 billion and Mission Technologies operating margin guidance to approximately 6% from approximately 5%. Mission Technologies EBITDA margin guidance increased to approximately 9% from 8.4%–8.6%. Shipbuilding operating margin guidance remained 6.0%–6.5%, and free cash flow guidance remained $500–$600 million.

Quarterly contract awards included submarine construction and unmanned vessel production, while Ingalls profitability declined.

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Rhea-AI Summary

HII (NYSE: HII) reported third-quarter 2026 revenue of $3.5 billion, with higher earnings and a raised full-year shipbuilding revenue outlook. Revenue rose 10.8% year over year. Net earnings increased to $217 million from $145 million, and diluted earnings per share rose to $5.48 from $3.68. Operating margin reached 7.0%, versus 5.0%. Operating cash flow increased to $520 million from $118 million.

New contract awards totaled $32.4 billion. HII said awards have secured approximately 90 percent of expected shipbuilding revenue through 2030. Newport News and Mission Technologies increased quarterly operating income, while Ingalls declined. HII raised FY26 shipbuilding revenue guidance to $10.5–$10.7 billion from $10.2–$10.4 billion and Mission Technologies operating margin guidance to approximately 6% from approximately 5%. FY26 free cash flow guidance remained $500–$600 million.

Positive

Third-quarter revenue rose 10.8% year over year to $3.5 billion.
Third-quarter diluted earnings per share increased to $5.48 from $3.68 a year earlier.
Third-quarter net earnings increased 49.7% to $217 million year over year.
Third-quarter operating income rose 52.8% to $246 million year over year.
Third-quarter operating margin improved to 7.0% from 5.0% a year earlier.
Third-quarter operating cash flow increased to $520 million from $118 million a year earlier.
Third-quarter free cash flow, a non-GAAP measure, increased to $429 million from $16 million.
New third-quarter contract awards totaled $32.4 billion.
HII said awards secured approximately 90 percent of expected shipbuilding revenue through 2030.
HII raised FY26 shipbuilding revenue guidance to $10.5–$10.7 billion from $10.2–$10.4 billion.
HII raised FY26 Mission Technologies operating margin guidance to approximately 6% from approximately 5%.
HII raised FY26 Mission Technologies EBITDA margin guidance to approximately 9% from 8.4%–8.6%.
HII reaffirmed FY26 shipbuilding operating margin guidance of 6.0%–6.5%.
HII maintained FY26 Mission Technologies revenue guidance of $3.0–$3.2 billion.
HII reaffirmed FY26 free cash flow guidance of $500–$600 million.
HII targets cumulative FY26 and FY27 free cash flow of $1.2–$1.3 billion.
Newport News third-quarter revenue rose 18.1% to $1,910 million year over year.
Newport News third-quarter operating income increased 65.0% to $132 million year over year.
Newport News third-quarter operating margin improved to 6.9% from 4.9% a year earlier.
Ingalls third-quarter revenue increased 5.8% to $876 million year over year.
Mission Technologies third-quarter revenue rose 0.6% to $792 million year over year.
Mission Technologies third-quarter operating income increased 108.8% to $71 million year over year.
Mission Technologies third-quarter operating margin improved to 9.0% from 4.3% a year earlier.
Mission Technologies third-quarter EBITDA margin improved to 11.9% from 7.8% a year earlier.
Mission Technologies quarterly purchased-intangible amortization fell to approximately $18 million from approximately $22 million.
Mission Technologies achieved a third-quarter orders-to-revenue ratio of 2.4x.
Mission Technologies won a $2.2 billion contract for Western Hemisphere surveillance and intelligence capabilities.
Mission Technologies received a contract for 10 ROMULUS unmanned surface vessels.
Mission Technologies received an option year contract for Navy Lionfish underwater vehicle production.
Mission Technologies expanded its unmanned production facility by 25%.
Newport News received Block VI Virginia-class and Build II Columbia-class submarine construction contracts.
Newport News received a long-lead materials contract for planned aircraft carrier CVN 82.
John F. Kennedy aircraft carrier achieved preliminary acceptance.
Ingalls expanded distributed shipbuilding to amphibious ships and erected a partner-built destroyer grand block.
Ingalls signed production agreements with Path Robotics and GrayMatter Robotics to develop and deploy shipbuilding automation.
Ingalls launched an automated welding pilot with HD Hyundai Heavy Industries.
Nine-month revenue increased 11.6% to $10,054 million year over year.
Nine-month operating income rose 26.0% to $611 million year over year.
Nine-month operating margin improved to 6.1% from 5.4% a year earlier.
Nine-month net earnings increased 28.7% to $574 million year over year.
Nine-month diluted earnings per share rose 28.0% to $14.53 year over year.
Newport News nine-month revenue rose 17.5% to $5,424 million year over year.
Newport News nine-month operating income rose 34.0% to $331 million year over year.
Newport News nine-month operating margin improved to 6.1% from 5.4% a year earlier.
Ingalls nine-month revenue rose 11.7% to $2,446 million year over year.
Ingalls nine-month operating income rose 0.6% to $166 million year over year.
Mission Technologies nine-month operating income increased 46.4% to $161 million year over year.
Mission Technologies nine-month operating margin improved to 7.0% from 4.8% a year earlier.
Quarterly dividends declared per share increased to $1.38 from $1.35 a year earlier.
HII lowered FY26 interest expense guidance to $100 million from $105 million.
HII reduced the expected negative FY26 pension-accounting adjustment to $40 million from $44 million.

Negative

Ingalls third-quarter operating income declined 9.2% to $59 million year over year, reflecting lower surface-combatant performance.
Ingalls third-quarter operating margin fell to 6.7% from 7.9% a year earlier.
Ingalls nine-month operating margin declined to 6.8% from 7.5% a year earlier.
Mission Technologies nine-month revenue declined 0.6% to $2,300 million year over year.
HII increased expected FY26 non-current state income tax expense to $27 million from approximately $20 million.
HII expects FY26 capital expenditures of approximately $500 million.
Third-quarter service revenue declined to $1,100 million from $1,120 million a year earlier.
Third-quarter general and administrative expenses increased to $257 million from $245 million a year earlier.
Third-quarter interest expense increased to $26 million from $23 million a year earlier.

Key Figures

Revenue: $3.5 billion Net earnings: $217 million Diluted EPS: $5.48 +4 more

Revenue: $3.5 billion; Q3 2026; up 10.8% from Q3 2025
Net earnings: $217 million; Q3 2026; compared with $145 million in Q3 2025
Diluted EPS: $5.48; Q3 2026; compared with $3.68 in Q3 2025
Operating margin: 7.0%; Q3 2026; compared with 5.0% in Q3 2025
New contract awards: $32.4 billion; Q3 2026
Shipbuilding revenue outlook: $10.5–$10.7 billion; FY26; raised from $10.2–$10.4 billion
Free cash flow outlook: $500–$600 million; FY26; reaffirmed

Previous Earnings Reports

1 past event · Latest: Jul 30

Same Type 1 event

Jul 30
earnings report

24h Move

+14.1%

Raised FY26 shipbuilding revenue guidance to $10.2–$10.4B; current release raises it to $10.5–$10.7B.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-gaap, book-to-bill, ebitda margin

3 terms

non-gaap financial

"Non-GAAP measures."

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

book-to-bill financial

"Achieved third quarter 2026 book-to-bill of 2.4x"

The book-to-bill ratio compares new orders a company has received (bookings) to the products or services it has invoiced or shipped (billings) over the same period. It matters to investors because a ratio above 1 means demand is outpacing fulfillment and the company may grow revenue or build backlog, while a ratio below 1 suggests slowing demand and possible future revenue weakness — think of it as new customer orders versus what the company actually sold.

ebitda margin financial

"Mission Technologies EBITDA margin1 in the third quarter of 2026"

EBITDA margin is the share of each dollar of sales that a company keeps as operating cash profit before interest, taxes, and accounting for equipment wear and long-term investments. Think of it like the cash a store has left from every sale after paying day-to-day running costs but before paying rent, loan interest or replacing old machinery. Investors use it to compare core profitability and operational efficiency across companies by removing financing and accounting differences.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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10/29/2026 - 07:00 AM EDT

NEWPORT NEWS, Va., Oct. 29, 2026 (GLOBE NEWSWIRE) -- HII (NYSE: HII) today reported results for the third quarter of fiscal 2026.

Highlights

Record third quarter revenues of $3.5 billion
Third quarter net earnings were $217 million or $5.48 diluted earnings per share
New contract awards in the third quarter totaled $32.4 billion
Company raises the FY26 shipbuilding revenue guidance range to between $10.5 and $10.7 billion¹
Company reaffirms FY26 shipbuilding operating margin² guidance range of 6.0 to 6.5 percent¹
Company reaffirms previously issued FY26 free cash flow² outlook¹

Third Quarter Results
Third quarter 2026 revenues of $3.5 billion were up 10.8% from the third quarter of 2025, driven by growth at Newport News Shipbuilding and Ingalls Shipbuilding.

Operating income in the third quarter of 2026 was $246 million and operating margin was 7.0%, compared to $161 million and 5.0%, respectively, in the third quarter of 2025.

Segment operating income² in the third quarter of 2026 was $262 million and segment operating margin² was 7.4%, compared to $179 million and 5.6%, respectively, in the third quarter of 2025.

Net earnings in the third quarter of 2026 were $217 million, compared to $145 million in the third quarter of 2025. Diluted earnings per share in the quarter was $5.48, compared to $3.68 in the third quarter of 2025.

Net cash provided by operating activities in the quarter was $520 million and free cash flow²was $429 million, compared to net cash provided by operating activities of $118 million and free cash flow² of $16 million in the third quarter of 2025.

New contract awards in the third quarter of 2026 were $32.4 billion. Year-to-date contract awards totaled $43.1 billion.

Commenting on the Company's third quarter 2026 results, Chris Kastner, HII's president and CEO said, “Our third quarter results reflect solid performance across all three segments, and the significant awards we received during the quarter have now secured approximately 90 percent of our expected shipbuilding revenue through 2030. With that visibility, our focus is squarely on shipbuilding execution. At Mission Technologies, we won landmark maritime autonomy awards for the Medium Unmanned Surface Vessel (MUSV) and the Lionfish Small Unmanned Undersea Vehicle (SUUV), demonstrating our continued leadership in unmanned systems and maritime autonomy."

¹The financial outlook, expectations, and other forward-looking statements provided by the company for 2026 and beyond reflect the company's judgment based on information available at the time of this release. Please see the "Cautionary Statement Regarding Forward-Looking Statements and Projections" section in this release and the “Forward-Looking Statements and Projections” section in our Quarterly Report on Form 10-Q for factors that may impact the company's ability to meet expectations.

²Non-GAAP measures. See Exhibit B for definitions and reconciliations.

Results of Operations

	Three Months Ended										Nine Months Ended
	September 30										September 30
($ in millions, except per share amounts)		2026			2025		$ Change		% Change			2026			2025		$ Change		% Change
Sales and service revenues	$	3,537		$	3,192		$	345	10.8	%	$	10,054		$	9,008		$	1,046	11.6	%
Operating income		246			161			85	52.8	%		611			485			126	26.0	%
Operating margin %		*7.0*	%		5.0	%			191 bps			*6.1*	%		5.4	%			69 bps
Segment operating income¹		262			179			83	46.4	%		658			522			136	26.1	%
Segment operating margin %¹		*7.4*	%		5.6	%			180 bps			*6.5*	%		5.8	%			75 bps
Net earnings		217			145			72	49.7	%		574			446			128	28.7	%
Diluted earnings per share	$	5.48		$	3.68		$	1.80	48.9	%	$	14.53		$	11.35		$	3.18	28.0	%
¹Non-GAAP measures that exclude non-segment factors affecting operating income. See Exhibit B for definitions and reconciliations.

Segment Operating Results

Ingalls Shipbuilding

	Three Months Ended											Nine Months Ended
	September 30											September 30
($ in millions)		2026			2025		$ Change			% Change			2026			2025		$ Change		% Change
Revenues	$	876		$	828		$	48		5.8	%	$	2,446		$	2,189		$	257	11.7	%
Segment operating income		59			65			(6	)	(9.2) %			166			165			1	0.6	%
Segment operating margin %		*6.7*	%		7.9	%				(112) bps			*6.8*	%		7.5	%			(75) bps

Ingalls Shipbuilding revenues for the third quarter of 2026 were $876 million, an increase of $48 million, or 5.8%, from the same period in 2025, primarily driven by higher volumes in amphibious assault ships.

Ingalls Shipbuilding segment operating income for the third quarter of 2026 was $59 million, a decrease of $6 million from the same period in 2025. Segment operating margin in the third quarter of 2026 was 6.7%, compared to 7.9% in the same period last year. The decrease in operating income was primarily driven by lower performance in surface combatants.

Key Ingalls Shipbuilding milestones for the quarter:

Christened guided missile destroyer George M. Neal (DDG 131)
Expanded distributed shipbuilding to amphibious ships and erected first grand block built by distributed shipbuilding partners on guided missile destroyer Thad Cochran (DDG 135)
Signed performance-based production agreements with Path Robotics and GrayMatter Robotics designed to accelerate the development and deployment of advanced automation across U.S. Navy shipbuilding programs
Launched intelligent mechanized automated welding pilot with HD Hyundai Heavy Industries

Newport News Shipbuilding

	Three Months Ended										Nine Months Ended
	September 30										September 30
($ in millions)		2026			2025		$ Change		% Change			2026			2025		$ Change		% Change
Revenues	$	1,910		$	1,617		$	293	18.1	%	$	5,424		$	4,616		$	808	17.5	%
Segment operating income		132			80			52	65.0	%		331			247			84	34.0	%
Segment operating margin %		*6.9*	%		4.9	%			196 bps			*6.1*	%		5.4	%			75 bps

Newport News Shipbuilding revenues for the third quarter of 2026 were $1.9 billion, an increase of $293 million, or 18.1%, from the same period in 2025. The increase was primarily driven by higher volumes in submarines and aircraft carriers.

Newport News Shipbuilding segment operating income for the third quarter of 2026 was $132 million, an increase of $52 million from the same period in 2025. Segment operating margin in the third quarter of 2026 was 6.9% compared to 4.9% in the same period last year. The increase in operating income was primarily driven by contract adjustments and incentives in the Virginia-class submarine program and higher submarine and aircraft carrier volumes.

Key Newport News Shipbuilding milestones for the quarter:

Awarded contracts for the construction of Block VI Virginia-class and Build II Columbia-class submarines
Achieved preliminary acceptance of John F. Kennedy (CVN 79)
Awarded long-lead time materials contract for the construction of planned aircraft carrier CVN 82

Mission Technologies

	Three Months Ended										Nine Months Ended
	September 30										September 30
($ in millions)		2026			2025		$ Change		% Change			2026			2025		$ Change			% Change
Revenues	$	792		$	787		$	5	0.6	%	$	2,300		$	2,313		$	(13	)	(0.6) %
Segment operating income		71			34			37	108.8	%		161			110			51		46.4	%
Segment operating margin %		*9.0*	%		4.3	%			464 bps			*7.0*	%		4.8	%				224 bps

Mission Technologies revenues for the third quarter of 2026 were $792 million, an increase of $5 million, or 0.6%, from the same period in 2025. The increase was primarily due to higher volumes in Unmanned Systems, partially offset by lower volumes in Global Security.

Mission Technologies segment operating income for the third quarter of 2026 was $71 million, an increase of $37 million from the same period in 2025. Segment operating margin in the third quarter of 2026 was 9.0%, compared to 4.3% in the same period last year. The increase in operating income was primarily due to a successful milestone achievement and higher volumes in Unmanned Systems and higher equity income from nuclear and environmental joint ventures.

Mission Technologies results included approximately $18 million of amortization of purchased intangible assets in the third quarter of 2026, compared to approximately $22 million in the same period last year.

Mission Technologies EBITDA margin¹in the third quarter of 2026 was 11.9%, compared to 7.8% in the third quarter of 2025.

Key Mission Technologies milestones for the quarter:

Achieved third quarter 2026 book-to-bill of 2.4x
Awarded contract for 10 ROMULUS USVs, accelerating deployment of proven autonomous capability
Awarded option year contract for U.S. Navy Lionfish Small Unmanned Undersea Vehicle (SUUV) production
Awarded $2.2 billion contract to advance U.S. surveillance and intelligence capabilities for the Western Hemisphere
Expanded unmanned production facility by 25% to meet growing global maritime demand

¹Non-GAAP measures. See Exhibit B for definitions and reconciliations.

HII Financial Outlook¹

FY26 shipbuilding revenue between $10.5 and $10.7 billion; expect shipbuilding operating margin² between 6.0% and 6.5%
FY26 Mission Technologies revenue between $3.0 and $3.2 billion
FY26 Mission Technologies segment operating margin of approximately 6%; and Mission Technologies EBITDA margin² of approximately 9%
FY26 free cash flow² between $500 and $600 million
Cumulative FY26 & FY27 free cash flow² target of between $1.2 billion and $1.3 billion

	Prior FY26 Outlook	Current FY26 Outlook¹
Shipbuilding Revenue	$10.2B - $10.4B	$10.5B - $10.7B
Shipbuilding Operating Margin²	6.0% - 6.5%	6.0% - 6.5%
Mission Technologies Revenue	$3.0B - $3.2B	$3.0B - $3.2B
Mission Technologies Segment Operating Margin	~5%	~6%
Mission Technologies EBITDA Margin²	8.4% - 8.6%	~9%

Operating FAS/CAS Adjustment	($44M)	($40M)
Non-current State Income Tax Expense³	~($20M)	($27M)
Interest Expense	($105M)	($100M)
Non-operating Retirement Benefit	$213M	$213M
Effective Tax Rate	~17%	~17%

Depreciation & Amortization	~$330M	~$330M
Capital Expenditures	4% - 5% of Sales	~$500M
Free Cash Flow²	$500M - $600M	$500M - $600M

¹The financial outlook, expectations, and other forward-looking statements provided by the company for 2026 and beyond reflect the company's judgment based on the information available at the time of this release. Please see the "Cautionary Statement Regarding Forward-Looking Statements and Projections" section in this release and the “Forward-Looking Statements and Projections” section in our Quarterly Report on Form 10-Q for factors that may impact the company's ability to meet expectations.

²Non-GAAP measures. See Exhibit B for definitions. In reliance upon Item 10(e)(1)(i)(B) of Regulation S-K, reconciliations of forward–looking GAAP and non–GAAP measures are not provided because of the unreasonable effort associated with providing such reconciliations due to the variability in the occurrence and the amounts of certain components of GAAP and non-GAAP measures. For the same reasons, we are unable to address the significance of the unavailable information, which could be material to future results.

³Outlook is based on current tax law. Variability exists based on how and when individual states conform to recent federal tax law changes.

About HII

HII is America's Seapower Company. The nation’s largest shipbuilder, HII builds the manned and unmanned maritime systems and all-domain mission technologies that project U.S. and allied power around the world. With a more than 140-year history of advancing U.S. national security, HII is headquartered in Virginia and employs 46,000 people across three divisions. For more information, visit www.HII.com.

Conference Call Information

HII will webcast its earnings conference call at 9 a.m. Eastern time today. A live audio broadcast of the conference call and supplemental presentation will be available on the investor relations page of the company’s website: www.HII.com. A replay of the call will be available on the website for a limited time.

Cautionary Statement Regarding Forward-Looking Statements and Projections

Statements in this earnings release and in our other filings with the SEC, as well as other statements we may make from time to time, other than statements of historical fact, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "guidance," "outlook," "predicts," "potential," "continue," and similar words or phrases or the negative of these words or phrases. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable when made, we cannot guarantee future results, levels of activity, performance, or achievements. There are a number of important factors that could cause our actual results to differ materially from the results anticipated by our forward-looking statements, which include, but are not limited to:

our dependence on the U.S. Government for substantially all of our business;
significant delays or reductions in appropriations for our programs and/or changes in customer priorities and requirements (including government budgetary constraints, government shutdowns, shifts in defense spending, and changes in customer short-range and long-range plans);
our ability to estimate our future contract costs, including cost increases due to inflation, labor challenges, changes in trade policy, or other factors and our efforts to recover or offset such costs and/or changes in estimated contract costs, and perform our contracts effectively;
changes in business practices, procurement processes and government regulations, including changes through executive orders, contract terms, or other policies or practices applicable to our industry, and our ability to comply with such requirements;
adverse economic conditions in the United States and globally;
our level of indebtedness and ability to service our indebtedness;
our ability to deliver our products and services at an affordable life cycle cost and compete within our markets;
our ability to attract, retain, and train a qualified workforce;
subcontractor and supplier performance and the availability and pricing of raw materials and components;
our ability to execute our strategic plan, including with respect to share repurchases, dividends, capital expenditures, and strategic acquisitions;
investigations, claims, disputes, enforcement actions, litigation (including criminal, civil, and administrative), and/or other legal proceedings, and improper conduct of employees, agents, subcontractors, suppliers, business partners, or joint ventures in which we participate, including the impact on our reputation or ability to do business;
changes in key estimates and assumptions regarding our pension and retiree health care costs;
security threats, including cyber security threats, and related disruptions;
natural and environmental disasters and political instability;
health epidemics, pandemics and similar outbreaks; and
other risk factors discussed herein and in our other filings with the SEC.

There may be other risks and uncertainties that we are unable to predict at this time or that we currently do not expect to have a material adverse effect on our business, and we undertake no obligation to update or revise any forward-looking statements. You should not place undue reliance on any forward-looking statements that we may make.

This release also contains non-GAAP financial measures and includes a GAAP reconciliation of these financial measures. Non-GAAP financial measures should not be construed as being more important than comparable GAAP measures.

Exhibit A: Financial Statements

HUNTINGTON INGALLS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)

	Three Months Ended September 30						Nine Months Ended September 30
(in millions, except per share amounts)		2026			2025			2026			2025
Sales and service revenues
Product sales	$	2,437		$	2,072		$	6,712		$	5,742
Service revenues		1,100			1,120			3,342			3,266
Sales and service revenues		3,537			3,192			10,054			9,008
Cost of sales and service revenues
Cost of product sales		2,100			1,815			5,826			4,962
Cost of service revenues		957			983			2,909			2,863
Income from operating investments, net		26			12			52			33
Other income and gains (losses), net		(3	)		—			(3	)		1
General and administrative expenses		257			245			757			732
Operating income		246			161			611			485
Other income (expense)
Interest expense		(26	)		(23	)		(75	)		(79	)
Non-operating retirement benefit		53			48			159			143
Other, net		2			18			22			30
Earnings before income taxes		275			204			717			579
Federal and foreign income tax expense		58			59			143			133
Net earnings	$	217		$	145		$	574		$	446

Basic earnings per share	$	5.49		$	3.69		$	14.57		$	11.35
Weighted-average common shares outstanding		39.5			39.3			39.4			39.3

Diluted earnings per share	$	5.48		$	3.68		$	14.53		$	11.35
Weighted-average diluted shares outstanding		39.6			39.4			39.5			39.3

Dividends declared per share	$	1.38		$	1.35		$	4.14		$	4.05

Net earnings from above	$	217		$	145		$	574		$	446
Other comprehensive income
Change in unamortized benefit plan costs		2			1			6			3
Tax expense for items of other comprehensive income		(1	)		(1	)		(2	)		(1	)
Other comprehensive income, net of tax		1			—			4			2
Comprehensive income	$	218		$	145		$	578		$	448

HUNTINGTON INGALLS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

($ in millions)	September 30, 2026			December 31, 2025
*Assets*
Current Assets
Cash and cash equivalents	$	387		$	774
Accounts receivable, net of allowance for expected credit losses of $3 million as of 2026 and $2 million as of 2025		361			339
Contract assets		2,125			1,758
Inventoried costs		240			219
Income taxes receivable		250			284
Prepaid expenses and other current assets		100			77
Total current assets		3,463			3,451
Property, plant, and equipment, net of accumulated depreciation of $2,892 million as of 2026 and $2,754 million as of 2025		3,849			3,726
Operating lease assets		275			267
Goodwill		2,650			2,650
Other intangible assets, net of accumulated amortization of $1,285 million as of 2026 and $1,222 million as of 2025		631			694
Pension plan assets		1,668			1,544
Miscellaneous other assets		444			417
Total assets	$	12,980		$	12,749
*Liabilities and Stockholders' Equity*
Current Liabilities
Trade accounts payable	$	709		$	556
Accrued employees’ compensation		403			443
Current portion of postretirement plan liabilities		119			119
Current portion of workers’ compensation liabilities		214			217
Contract liabilities		780			1,220
Other current liabilities		513			490
Total current liabilities		2,738			3,045
Long-term debt		2,704			2,700
Pension plan liabilities		155			155
Other postretirement plan liabilities		187			200
Workers’ compensation liabilities		437			442
Long-term operating lease liabilities		225			223
Deferred tax liabilities		694			572
Other long-term liabilities		348			339
Total liabilities		7,488			7,676
Commitments and Contingencies
Stockholders’ Equity
Common stock, $0.01 par value; 150,000,000 shares authorized; 53,990,247 shares issued and 39,405,538 shares outstanding as of 2026, and 53,826,236 shares issued and 39,241,527 shares outstanding as of 2025		1			1
Additional paid-in capital		2,096			2,087
Retained earnings		5,893			5,487
Treasury stock		(2,449	)		(2,449	)
Accumulated other comprehensive loss		(49	)		(53	)
Total stockholders’ equity		5,492			5,073
Total liabilities and stockholders’ equity	$	12,980		$	12,749

HUNTINGTON INGALLS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Nine Months Ended September 30
($ in millions)		2026			2025
Operating Activities:
Net earnings	$	574		$	446
Adjustments to reconcile net cash provided by operating activities:
Depreciation		167			164
Amortization of purchased intangibles		63			78
Stock-based compensation		47			43
Deferred income taxes		120			121
Gain on investments in marketable securities		(18	)		(28	)
Other non-cash transactions, net		17			15
Change in
Accounts receivable		(22	)		(162	)
Contract assets		(367	)		(186	)
Inventoried costs		(21	)		(13	)
Prepaid expenses and other assets		(2	)		(23	)
Accounts payable and accruals		(327	)		207
Retiree benefits		(132	)		(116	)
Net cash provided by operating activities		99			546
Investing Activities:
Capital expenditures
Capital expenditure additions		(288	)		(268	)
Grant proceeds for capital expenditures		7			6
Proceeds from sale of investments		—			5
Acquisitions of businesses		—			(132	)
Other investing activities, net		1			2
Net cash used in investing activities		(280	)		(387	)
Financing Activities:
Repayment of long-term debt		—			(500	)
Proceeds from line of credit borrowings		17			—
Repayment of line of credit borrowings		(17	)		—
Dividends paid		(163	)		(159	)
Employee taxes on certain share-based payment arrangements		(43	)		(14	)
Other financing activities, net		—			(5	)
Net cash used in financing activities		(206	)		(678	)
Change in cash and cash equivalents		(387	)		(519	)
Cash and cash equivalents, beginning of period		774			831
Cash and cash equivalents, end of period	$	387		$	312
Supplemental Cash Flow Disclosure
Cash paid for income taxes (net of refunds)	$	19		$	71
Cash paid for interest	$	96		$	86
Non-Cash Investing and Financing Activities
Capital expenditures accrued in accounts payable	$	14		$	7

Exhibit B: Non-GAAP Measures Definitions & Reconciliations

This earnings release contains non-GAAP (accounting principles generally accepted in the United States of America) financial measures as defined by SEC Regulation G and indicated by a footnote in the text of this release. Definitions for the non-GAAP measures, and related reconciliations, are provided below. Because not all companies use identical definitions or calculations, our presentation of these measures may not be comparable to similarly titled measures of other companies.

Segment Operating Income and Segment Operating Margin. We internally manage our operations by reference to segment operating income and segment operating margin and use these measures to evaluate our core operating performance. We believe that segment operating income and segment operating margin reflect additional ways of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. These measures should be considered in addition to, and not as alternatives for, operating income and operating margin or any other performance measure presented in accordance with GAAP.

Segment operating income is defined as operating income for the relevant segment(s) before the Operating FAS/CAS Adjustment and non-current state income taxes.

Segment operating margin is defined as segment operating income as a percentage of sales and service revenues.

Shipbuilding operating margin, Mission Technologies EBITDA and Mission Technologies EBITDA margin. We use shipbuilding operating margin, Mission Technologies EBITDA and Mission Technologies EBITDA margin to evaluate our core operating performance. We believe these measures reflect additional ways of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. These measures should be considered in addition to, and not as alternatives for, operating income and operating margin or any other performance measure presented in accordance with GAAP.

Shipbuilding operating margin is defined as the combined segment operating income of our Newport News Shipbuilding segment and Ingalls Shipbuilding segment as a percentage of shipbuilding revenue. Shipbuilding revenue is the sum of revenues of our Newport News Shipbuilding segment and Ingalls Shipbuilding segment.

Mission Technologies EBITDA is defined as Mission Technologies segment operating income before interest expense, income taxes, depreciation, and amortization.

Mission Technologies EBITDA margin is defined as Mission Technologies EBITDA as a percentage of Mission Technologies revenues.

Free cash flow. We use free cash flow as a key operating metric in assessing the performance of our business and as a key performance measure in evaluating management performance and determining incentive compensation. We believe free cash flow is an important liquidity measure that may be useful to investors and other users of our financial statements because it provides insight into our current and period-to-period performance and our ability to generate cash from continuing operations. Free cash flow has limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, net income as a measure of our performance or net cash provided by operating activities as a measure of our liquidity.

Free cash flow is defined as net cash provided by (used in) operating activities less capital expenditures net of related grant proceeds.

In reliance upon Item 10(e)(1)(i)(B) of Regulation S-K, reconciliations of forward-looking GAAP and non-GAAP measures are not provided because of the unreasonable effort associated with providing such reconciliations due to the variability in the occurrence and the amounts of certain components of GAAP and non-GAAP measures. For the same reasons, we are unable to address the significance of the unavailable information, which could be material to future results.

Reconciliations of Segment Operating Income and Segment Operating Margin

	Three Months Ended						Nine Months Ended
	September 30						September 30
($ in millions)		2026			2025			2026			2025
Ingalls revenues	$	876		$	828		$	2,446		$	2,189
Newport News revenues		1,910			1,617			5,424			4,616
Mission Technologies revenues		792			787			2,300			2,313
Intersegment eliminations		(41	)		(40	)		(116	)		(110	)
Sales and Service Revenues		3,537			3,192			10,054			9,008

Operating Income		246			161			611			485
Operating FAS/CAS Adjustment		12			9			29			25
Non-current state income taxes		4			9			18			12
Segment Operating Income		262			179			658			522
As a percentage of sales and service revenues		7.4	%		5.6	%		6.5	%		5.8	%
Ingalls segment operating income		59			65			166			165
As a percentage of Ingalls revenues		6.7	%		7.9	%		6.8	%		7.5	%
Newport News segment operating income		132			80			331			247
As a percentage of Newport News revenues		6.9	%		4.9	%		6.1	%		5.4	%
Mission Technologies segment operating income		71			34			161			110
As a percentage of Mission Technologies revenues		9.0	%		4.3	%		7.0	%		4.8	%

Reconciliation of Free Cash Flow

	Three Months Ended						Nine Months Ended
	September 30						September 30
($ in millions)		2026			2025			2026			2025
Net cash provided by operating activities	$	520		$	118		$	99		$	546
Less capital expenditures:
Capital expenditure additions		(95	)		(105	)		(288	)		(268	)
Grant proceeds for capital expenditures		4			3			7			6
Free cash flow	$	429		$	16		$	(182	)	$	284

Reconciliation of Mission Technologies EBITDA and EBITDA Margin

	Three Months Ended						Nine Months Ended
	September 30						September 30
($ in millions)		2026			2025			2026			2025
Mission Technologies sales and service revenues	$	792		$	787		$	2,300		$	2,313

Mission Technologies segment operating income	$	71		$	34		$	161		$	110
Mission Technologies depreciation expense		3			3			9			9
Mission Technologies amortization expense		18			22			53			67
Mission Technologies state tax expense		2			2			6			6
Mission Technologies EBITDA	$	94		$	61		$	229		$	192
Mission Technologies EBITDA margin		11.9	%		7.8	%		10.0	%		8.3	%

Contacts:
Brooke Hart (Media)
brooke.hart@hii.com
202-264-7108

Christie Thomas (Investors)
christie.thomas@hii.com
757-380-2104

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were HII's third-quarter 2026 revenue and earnings?

HII reported $3.5 billion in revenue and $5.48 in diluted earnings per share for the third quarter of 2026. Revenue increased 10.8% year over year, while diluted earnings per share rose from $3.68. Net earnings were $217 million, compared with $145 million a year earlier.

What changed in HII's FY26 financial outlook?

HII raised shipbuilding revenue guidance to $10.5–$10.7 billion from $10.2–$10.4 billion and Mission Technologies operating margin guidance to approximately 6% from approximately 5%. Mission Technologies EBITDA margin guidance increased to approximately 9% from 8.4%–8.6%. Shipbuilding operating margin guidance remained 6.0%–6.5%, and free cash flow guidance remained $500–$600 million.

Why did HII's Newport News operating income increase in the third quarter of 2026?

Newport News operating income increased primarily because of Virginia-class submarine contract adjustments and incentives, together with higher submarine and aircraft carrier volumes. Quarterly operating income reached $132 million, compared with $80 million a year earlier.

What drove HII Mission Technologies' third-quarter 2026 operating income growth?

Mission Technologies operating income increased primarily because of a successful milestone achievement, higher Unmanned Systems volumes and higher equity income from nuclear and environmental joint ventures. Quarterly operating income increased to $71 million from $34 million a year earlier.

HII Reports Third Quarter 2026 Results