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HII (NYSE: HII) raises 2026 shipbuilding outlook after strong Q2 results

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(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Huntington Ingalls Industries reported strong results for the quarter ended June 30, 2026. Revenue was $3.4 billion, up 10.9% from $3.1 billion a year earlier, with operating income of $210 million and operating margin improving to 6.1% from 5.3%.

Net earnings were $208 million and diluted EPS was $5.27, up from $3.86, driven by higher volumes at Newport News Shipbuilding and Ingalls Shipbuilding and improved margins at Mission Technologies. New contract awards of $6.7 billion brought backlog to $57.3 billion as of June 30, 2026.

Cash generation was weaker: net cash used in operating activities in the quarter was $31 million and free cash flow was negative $150 million, versus $730 million a year earlier. The company raised its FY26 shipbuilding revenue outlook to $10.2–$10.4 billion and increased the low end of shipbuilding operating margin guidance to 6.0%–6.5%, while reaffirming a free cash flow outlook of $500–$600 million.

Positive

  • Double-digit top- and bottom-line growth with higher guidance: Q2 2026 revenue rose 10.9% to $3.4 billion, diluted EPS increased 36.5% to $5.27, and management raised FY26 shipbuilding revenue and operating margin guidance while reaffirming free cash flow of $500–$600 million.

Negative

  • Significant deterioration in cash metrics: Q2 free cash flow was negative $150 million versus $730 million a year earlier, six-month free cash flow was negative $611 million, and cash on hand declined to $12 million from $774 million at December 31, 2025.

Insights

Analyzing...

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 Revenue $3,418 million Sales and service revenues for the quarter ended June 30, 2026
Q2 2026 Diluted EPS $5.27 Diluted earnings per share for the quarter ended June 30, 2026
Q2 2026 Free Cash Flow -$150 million Free cash flow for the three months ended June 30, 2026
Backlog as of June 30, 2026 $57.3 billion Total backlog after $6.7 billion of new contract awards in Q2 2026
FY26 Shipbuilding Revenue Guidance $10.2B–$10.4B Updated outlook for 2026 shipbuilding revenue
FY26 Free Cash Flow Guidance $500M–$600M Expected 2026 free cash flow as provided in financial outlook
Cash and Cash Equivalents $12 million Cash balance at June 30, 2026, on the condensed balance sheet
New Contract Awards Q2 2026 $6.7 billion New contract awards in the second quarter of 2026
segment operating income financial
"Segment operating income in the second quarter of 2026 was $224 million"
Segment operating income is the profit a company earns from one specific part of its business after subtracting the costs of running that part but before interest, taxes and corporate-level items. For investors, it shows which divisions are actually generating operating profit and lets you compare the health and efficiency of different business “slices,” much like checking the cash a single store in a chain makes before company-wide overhead is applied.
free cash flow financial
"Free cash flow was negative $150 million in the second quarter of 2026"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Operating FAS/CAS Adjustment financial
"Operating FAS/CAS Adjustment of $8 million is added to operating income"
Mission Technologies EBITDA margin financial
"Mission Technologies EBITDA margin in the second quarter of 2026 was 10.1%"
contract assets financial
"Contract assets were $2,154 million at June 30, 2026"
Contract assets are amounts a company has earned by doing work or delivering goods under a customer agreement but has not yet billed or collected because certain contract conditions remain. Think of it as completed work sitting in a company’s toolbox waiting for an invoice trigger. For investors, growing contract assets signal future cash and revenue potential but also raise questions about timing, cash collection risk and the real strength of reported sales.
Revenue $3,418 million Up $336 million or 10.9% from Q2 2025
Diluted EPS $5.27 Increased by $1.41 or 36.5% from $3.86 in Q2 2025
Operating Margin 6.1% Improved from 5.3% in Q2 2025, up 86 basis points
Free Cash Flow -$150 million Down from $730 million in Q2 2025
Guidance

For FY26, the company expects shipbuilding revenue between $10.2 and $10.4 billion, shipbuilding operating margin between 6.0% and 6.5%, and free cash flow between $500 and $600 million.

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FAQ

How did HII (HII) perform financially in the second quarter of 2026?
HII reported Q2 2026 revenue of $3.4 billion, up 10.9%, and net earnings of $208 million. Diluted EPS rose to $5.27 from $3.86 a year earlier, with operating margin improving to 6.1% from 5.3%.

What were the key segment results for HII (HII) in Q2 2026?
Ingalls Shipbuilding revenue was $845 million (up 16.7%), Newport News Shipbuilding revenue was $1.8 billion (up 15.3%), and Mission Technologies revenue was $760 million (down 3.9%). Mission Technologies segment operating margin improved to 7.2% from 4.6%.

What backlog and new awards did HII (HII) disclose as of June 30, 2026?
HII reported $6.7 billion of new contract awards in Q2 2026, bringing total backlog to $57.3 billion as of June 30, 2026. This backlog reflects long-term visibility across its shipbuilding and mission technologies programs.

How did HII (HII) change its FY26 financial outlook?
HII raised FY26 shipbuilding revenue guidance to $10.2–$10.4 billion from $9.7–$9.9 billion and lifted shipbuilding operating margin guidance to 6.0%–6.5%. It reaffirmed FY26 free cash flow guidance of $500–$600 million and Mission Technologies revenue of $3.0–$3.2 billion.

What non-GAAP measures does HII (HII) emphasize in its Q2 2026 results?
HII highlights segment operating income and margin, shipbuilding operating margin, Mission Technologies EBITDA and EBITDA margin, and free cash flow. Segment operating income was $224 million in Q2 2026, with a segment operating margin of 6.6%.
0001501585false00015015852026-07-302026-07-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________________ 
FORM 8-K
 _____________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
July 30, 2026
  _____________________________________
HUNTINGTON INGALLS INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
 _____________________________________
Delaware001-3491090-0607005
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)
4101 Washington Avenue
Newport NewsVirginia23607
(Address of principal executive offices) (Zip Code)
(757) 380-2000
(Registrant’s telephone number, including area code)
 (Former name or former address, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common StockHIINew York Stock Exchange
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐  
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02.Results of Operations and Financial Condition.
On July 30, 2026, Huntington Ingalls Industries, Inc. issued a press release announcing its financial results for the quarter ended June 30, 2026. A copy of the press release is furnished as Exhibit 99.1 hereto.
 
Item 9.01.Financial Statements and Exhibits.
(d)Exhibits.
Exhibit No.  Description
99.1   
Press Release dated July 30, 2026.
104 Cover Page Interactive Data File (embedded within Inline XBRL document)




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
  HUNTINGTON INGALLS INDUSTRIES, INC.
July 30, 2026
  By: /s/ Thomas E. Stiehle
   Thomas E. Stiehle
   Executive Vice President and Chief Financial Officer


hii_logox2023xlogoa.jpg
Exhibit 99.1

News Release
Contacts:
Brooke Hart (Media)        
brooke.hart@hii.com
202-264-7108
        
Christie Thomas (Investors)
christie.thomas@hii-co.com
757-380-2104            


HII Reports Second Quarter 2026 Results

NEWPORT NEWS, Va. (July 30, 2026) - HII (NYSE: HII) today reported results for the second quarter of fiscal 2026.

Highlights
•Second quarter revenues were $3.4 billion
•Second quarter net earnings were $208 million or $5.27 diluted earnings per share
•Company raises the FY26 shipbuilding revenue guidance range to between $10.2 and $10.4 billion1
•Company raises the low end of the FY26 shipbuilding operating margin2 guidance range1
•Company reaffirms previously issued free cash flow2 outlook1

Second Quarter Results
Second quarter 2026 revenues of $3.4 billion were up 10.9% from the second quarter of 2025, driven by growth at Newport News Shipbuilding and Ingalls Shipbuilding.

Operating income in the second quarter of 2026 was $210 million and operating margin was 6.1%, compared to $163 million and 5.3%, respectively, in the second quarter of 2025.

Segment operating income2 in the second quarter of 2026 was $224 million and segment operating margin2 was 6.6%, compared to $172 million and 5.6%, respectively, in the second quarter of 2025.

Net earnings in the second quarter of 2026 were $208 million, compared to $152 million in the second quarter of 2025. Diluted earnings per share in the quarter was $5.27, compared to $3.86 in the second quarter of 2025.

Net cash used in operating activities in the quarter was $31 million and free cash flow2 was negative $150 million, compared to net cash provided by operating activities of $823 million and free cash flow2 of $730 million in the second quarter of 2025.

New contract awards in the second quarter of 2026 were $6.7 billion, bringing total backlog to $57.3 billion as of June 30, 2026.

“We continued to make good progress on our 2026 operational initiatives, with plans in place to achieve our shipbuilding throughput improvement goal of 15%. Given the significant shipbuilding demand and our proven ability to drive higher throughput, we are pleased to increase our top line expectations for the full year while lifting the lower end of our margin expectations as we remain focused on execution," said Chris Kastner, HII’s president and CEO.




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 "Forward-looking Statements" section in this release and our 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.









HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 1 of 12


Results of Operations
Three Months EndedSix Months Ended
June 30June 30
($ in millions, except per share amounts)20262025$ Change% Change20262025$ Change% Change
Sales and service revenues$3,418 $3,082 $336 10.9 %$6,517 $5,816 $701 12.1 %
Operating income210 163 47 28.8 %365 324 41 12.7 %
  Operating margin %6.1 %5.3 %86 bps5.6 %5.6 %3 bps
Segment operating income1
224 172 52 30.2 %396 343 53 15.5 %
  Segment operating margin %1
6.6 %5.6 %97 bps6.1 %5.9 %18 bps
Net earnings208 152 56 36.8 %357 301 56 18.6 %
Diluted earnings per share$5.27 $3.86 $1.41 36.5 %$9.06 $7.66 $1.40 18.3 %
1 Non-GAAP measures that exclude non-segment factors affecting operating income. See Exhibit B for definitions and reconciliations.

Segment Operating Results
Ingalls Shipbuilding
Three Months EndedSix Months Ended
June 30June 30
($ in millions)20262025$ Change% Change20262025$ Change% Change
Revenues$845 $724 $121 16.7 %$1,570 $1,361 $209 15.4 %
Segment operating income58 54 4 7.4 %107 100 7 7.0 %
Segment operating margin %6.9 %7.5 %(59) bps6.8 %7.3 %(53) bps
Ingalls Shipbuilding revenues for the second quarter of 2026 were $845 million, an increase of $121 million, or 16.7%, from the same period in 2025, primarily driven by higher volumes in amphibious assault ships.

Ingalls Shipbuilding segment operating income for the second quarter of 2026 was $58 million, an increase of $4 million from the same period in 2025. Segment operating margin in the second quarter of 2026 was 6.9%, compared to 7.5% in the same period last year. The increase in operating income was primarily driven by higher volumes in amphibious assault ships, partially offset by favorable contract adjustments in surface combatants in the second quarter of 2025.

Key Ingalls Shipbuilding milestones for the quarter:
•Awarded Frigate class (FF(X)) lead yard support services contract to procure long lead time material, execute design work and begin pre-construction activities for the first ship
•Began fabrication of guided missile destroyer John F. Lehman (DDG 137), the seventh Flight III destroyer to be constructed at Ingalls


























HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 2 of 12


Newport News Shipbuilding
Three Months EndedSix Months Ended
June 30June 30
($ in millions)20262025$ Change% Change20262025$ Change% Change
Revenues$1,849 $1,603 $246 15.3 %$3,514 $2,999 $515 17.2 %
Segment operating income111 82 29 35.4 %199 167 32 19.2 %
Segment operating margin %6.0 %5.1 %89 bps5.7 %5.6 %9 bps
Newport News Shipbuilding revenues for the second quarter of 2026 were $1.8 billion, an increase of $246 million, or 15.3%, from the same period in 2025. The increase was primarily driven by higher volumes in aircraft carriers and submarines.

Newport News Shipbuilding segment operating income for the second quarter of 2026 was $111 million, an increase of $29 million from the same period in 2025. Segment operating margin in the second quarter of 2026 was 6.0% compared to 5.1% in the same period last year. The increase in segment operating income was primarily driven by contract adjustments and incentives in aircraft carriers and the higher volumes described above, partially offset by lower performance in aircraft carriers.

Key Newport News Shipbuilding milestones for the quarter:
•Redelivered Virginia-class submarine USS New Jersey (SSN 796) following completion of post-shakedown availability, a maintenance period that typically follows delivery of new ships and includes combat systems and electronics upgrades, as well as general maintenance on the submarine
•Celebrated the opening of the Carrier Refueling Overhaul Workcenter, a new facility that enhances the work environment for sailors and shipbuilders during refueling and complex overhaul of nuclear-powered aircraft carriers

Mission Technologies
Three Months EndedSix Months Ended
June 30June 30
($ in millions)20262025$ Change% Change20262025$ Change% Change
Revenues$760 $791 $(31)(3.9)%$1,508 $1,526 $(18)(1.2)%
Segment operating income55 36 19 52.8 %90 76 14 18.4 %
Segment operating margin %7.2 %4.6 %269 bps6.0 %5.0 %99 bps
Mission Technologies revenues for the second quarter of 2026 were $760 million, a decrease of $31 million, or 3.9%, from the same period in 2025. The decrease was primarily due to lower volumes in All-Domain Operations, largely related to the impact of a favorable non-recurring settlement in the second quarter of 2025, as well as lower volumes in Global Security, partially offset by higher volumes in Warfare Systems and Unmanned Systems.

Mission Technologies segment operating income for the second quarter of 2026 was $55 million, an increase of $19 million from the same period in 2025. Segment operating margin in the second quarter of 2026 was 7.2%, compared to 4.6% in the same period last year. The increase in segment operating income was primarily due to higher equity income from nuclear and environmental joint ventures.

Mission Technologies results included approximately $17 million of amortization of purchased intangible assets in the second quarter of 2026, compared to approximately $23 million in the same period last year.

Mission Technologies EBITDA margin1 in the second quarter of 2026 was 10.1%, compared to 8.1% in the second quarter of 2025.

Key Mission Technologies milestones for the quarter:
•U.S. Navy selected HII’s ROMULUS Unmanned Surface Vessel to advance to the evaluation phase of the Medium Unmanned Surface Vessel program
◦Announced plans for the production of four additional ROMULUS 151 vessels in addition to the vessel currently under construction
•Delivered the first REMUS 130 unmanned underwater vehicle to the U.S. Department of War
1Non-GAAP measures. See Exhibit B for definitions and reconciliations.









HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 3 of 12



HII Financial Outlook1
•FY26 shipbuilding revenue between $10.2 and $10.4 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 5%; and Mission Technologies EBITDA margin2 between 8.4% and 8.6%
•FY26 free cash flow2 between $500 and $600 million

Prior FY26 Outlook
Current FY26 Outlook1
Shipbuilding Revenue$9.7B - $9.9B$10.2B - $10.4B
Shipbuilding Operating Margin2
5.5% - 6.5%6.0% - 6.5%
Mission Technologies Revenue
$3.0B - $3.2B$3.0B - $3.2B
Mission Technologies Segment Operating Margin
~5%~5%
Mission Technologies EBITDA Margin2
8.4% - 8.6%8.4% - 8.6%
Operating FAS/CAS Adjustment($44M)($44M)
Non-current State Income Tax Expense3
~($20M)~($20M)
Interest Expense($105M)($105M)
Non-operating Retirement Benefit$213M$213M
Effective Tax Rate~17%~17%
Depreciation & Amortization~$330M~$330M
Capital Expenditures4% - 5% of Sales4% - 5% of Sales
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 "Forward-looking Statements" section in this release and our 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
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 4 of 12



HII is America’s largest shipbuilder, delivering the world’s most powerful ships and all-domain mission technologies, including unmanned systems, to U.S. and allied defense customers. HII is the largest producer of unmanned underwater vehicles for the U.S. Navy and the world.

With a more than 140-year history of advancing U.S. national security, HII builds and integrates defense capabilities extending from the core fleet to C6ISR, AI/ML, EW and synthetic training. Headquartered in Virginia, HII’s workforce is 45,000 strong. 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.











HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 5 of 12



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.









HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 6 of 12



Exhibit A: Financial Statements

HUNTINGTON INGALLS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)
Three Months Ended June 30Six Months Ended June 30
(in millions, except per share amounts)2026202520262025
Sales and service revenues
Product sales$2,271 $1,957 $4,275 $3,670 
Service revenues1,147 1,125 2,242 2,146 
Sales and service revenues3,418 3,082 6,517 5,816 
Cost of sales and service revenues
Cost of product sales1,985 1,696 3,726 3,147 
Cost of service revenues1,002 991 1,952 1,880 
Income from operating investments, net21 8 26 21 
Other income and gains, net— 1 — 1 
General and administrative expenses242 241 500 487 
Operating income210 163 365 324 
Other income (expense)
Interest expense(27)(28)(49)(56)
Non-operating retirement benefit53 47 106 95 
Other, net18 6 20 12 
Earnings before income taxes254 188 442 375 
Federal and foreign income tax expense46 36 85 74 
Net earnings$208 $152 $357 $301 
Basic earnings per share$5.27 $3.86 $9.06 $7.66 
Weighted-average common shares outstanding39.5 39.4 39.4 39.3 
Diluted earnings per share$5.27 $3.86 $9.06 $7.66 
Weighted-average diluted shares outstanding39.5 39.4 39.4 39.3 
Dividends declared per share$1.38 $1.35 $2.76 $2.70 
Net earnings from above$208 $152 $357 $301 
Other comprehensive income
Change in unamortized benefit plan costs2 1 4 2 
Tax expense for items of other comprehensive income— — (1)— 
Other comprehensive income, net of tax2 1 3 2 
Comprehensive income$210 $153 $360 $303 










HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 7 of 12



HUNTINGTON INGALLS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
($ in millions)June 30, 2026December 31, 2025
Assets
Current Assets
Cash and cash equivalents$12 $774 
Accounts receivable, net of allowance for expected credit losses of $3 million as of 2026 and $2 million as of 2025
452 339 
Contract assets2,154 1,758 
Inventoried costs236 219 
Income taxes receivable279 284 
Prepaid expenses and other current assets106 77 
Total current assets3,239 3,451 
Property, plant, and equipment, net of accumulated depreciation of $2,849 million as of 2026 and $2,754 million as of 2025
3,806 3,726 
Operating lease assets282 267 
Goodwill2,650 2,650 
Other intangible assets, net of accumulated amortization of $1,265 million as of 2026 and $1,222 million as of 2025
651 694 
Pension plan assets1,627 1,544 
Miscellaneous other assets427 417 
Total assets$12,682 $12,749 
Liabilities and Stockholders' Equity
Current Liabilities
Trade accounts payable$737 $556 
Accrued employees’ compensation386 443 
Current portion of postretirement plan liabilities119 119 
Current portion of workers’ compensation liabilities220 217 
Contract liabilities690 1,220 
Other current liabilities481 490 
Total current liabilities2,633 3,045 
Long-term debt2,702 2,700 
Pension plan liabilities155 155 
Other postretirement plan liabilities189 200 
Workers’ compensation liabilities450 442 
Long-term operating lease liabilities233 223 
Deferred tax liabilities662 572 
Other long-term liabilities346 339 
Total liabilities7,370 7,676 
Commitments and Contingencies
Stockholders’ Equity
Common stock, $0.01 par value; 150,000,000 shares authorized; 53,988,912 shares issued and 39,404,203 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 capital2,080 2,087 
Retained earnings5,730 5,487 
Treasury stock(2,449)(2,449)
Accumulated other comprehensive loss(50)(53)
Total stockholders’ equity5,312 5,073 
Total liabilities and stockholders’ equity$12,682 $12,749 













HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 8 of 12




HUNTINGTON INGALLS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 Six Months Ended June 30
($ in millions)20262025
Operating Activities:
Net earnings$357 $301 
Adjustments to reconcile net cash provided by (used in) operating activities:
Depreciation112 110 
Amortization of purchased intangibles43 52 
Stock-based compensation31 33 
Deferred income taxes89 (19)
Gain on investments in marketable securities(19)(10)
Other non-cash transactions, net12 9 
Change in
Accounts receivable(113)(165)
Contract assets(396)(128)
Inventoried costs(17)(7)
Prepaid expenses and other assets(17)57 
Accounts payable and accruals(413)272 
Retiree benefits(90)(77)
Net cash provided by (used in) operating activities(421)428 
Investing Activities:
Capital expenditures
Capital expenditure additions(193)(163)
Grant proceeds for capital expenditures3 3 
Acquisitions of businesses— (133)
Other investing activities, net1 2 
Net cash used in investing activities(189)(291)
Financing Activities:
Repayment of long-term debt— (500)
Proceeds from line of credit borrowings17 — 
Repayment of line of credit borrowings(17)— 
Dividends paid(109)(106)
Employee taxes on certain share-based payment arrangements(43)(14)
Other financing activities, net— (5)
Net cash used in financing activities(152)(625)
Change in cash and cash equivalents(762)(488)
Cash and cash equivalents, beginning of period774 831 
Cash and cash equivalents, end of period$12 $343 
Supplemental Cash Flow Disclosure
Cash paid for income taxes (net of refunds)$12 $55 
Cash paid for interest$59 $42 
Non-Cash Investing and Financing Activities
Capital expenditures accrued in accounts payable$14 $6 









HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 9 of 12



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 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.










HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 10 of 12



Reconciliations of Segment Operating Income and Segment Operating Margin

Three Months EndedSix Months Ended
June 30June 30
($ in millions)2026202520262025
Ingalls revenues$845 $724 $1,570 $1,361 
Newport News revenues1,849 1,603 3,514 2,999 
Mission Technologies revenues760 791 1,508 1,526 
Intersegment eliminations(36)(36)(75)(70)
Sales and Service Revenues3,418 3,082 6,517 5,816 
Operating Income210 163 365 324 
Operating FAS/CAS Adjustment8 6 17 16 
Non-current state income taxes6 3 14 3 
Segment Operating Income224 172 396 343 
  As a percentage of sales and service revenues6.6 %5.6 %6.1 %5.9 %
Ingalls segment operating income58 54 107 100 
  As a percentage of Ingalls revenues6.9 %7.5 %6.8 %7.3 %
Newport News segment operating income111 82 199 167 
  As a percentage of Newport News revenues6.0 %5.1 %5.7 %5.6 %
Mission Technologies segment operating income55 36 90 76 
  As a percentage of Mission Technologies revenues7.2 %4.6 %6.0 %5.0 %

Reconciliation of Free Cash Flow

Three Months EndedSix Months Ended
June 30June 30
($ in millions)2026202520262025
Net cash provided by (used in) operating activities$(31)$823 $(421)$428 
Less capital expenditures:
Capital expenditure additions (119)(96)(193)(163)
Grant proceeds for capital expenditures — 3 3 3 
Free cash flow$(150)$730 $(611)$268 























HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 11 of 12



Reconciliation of Mission Technologies EBITDA and EBITDA Margin

Three Months EndedSix Months Ended
June 30June 30
($ in millions)2026202520262025
Mission Technologies sales and service revenues$760 $791 $1,508 $1,526 
Mission Technologies segment operating income$55 $36 $90 $76 
Mission Technologies depreciation expense3 3 6 6 
Mission Technologies amortization expense17 23 35 45 
Mission Technologies state tax expense2 2 4 4 
Mission Technologies EBITDA$77 $64 $135 $131 
Mission Technologies EBITDA margin10.1 %8.1 %9.0 %8.6 %









HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 12 of 12

Source: View Original Filing on SEC EDGAR

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