Huntington Ingalls Industries, Inc. (HII)

HII reported record third-quarter revenue of $3.5 billion on 29 October, up 10.8 percent from a year earlier 1. Net earnings were $217 million, or $5.48 per diluted share 1.

Newport News Shipbuilding, which builds aircraft carriers and submarines, grew revenue 18.1 percent to $1.9 billion 1. The company said the increase was primarily driven by higher volumes in submarines and aircraft carriers 1.

New contract awards in the quarter totaled $32.4 billion 1. Chief executive Chris Kastner said they secured about 90 percent of expected shipbuilding revenue through 2030 1. The Defense Post reported on 30 July that the Navy awarded $76.6 billion in submarine contract changes to General Dynamics Electric Boat and HII's Newport News yard 5.

The company raised its shipbuilding revenue outlook for the year to between $10.5 billion and $10.7 billion and kept its free cash flow outlook at $500 million to $600 million 1. The open question is execution, since Newport News has faced performance challenges on carriers and Virginia class submarines 2.

HII has been independent since 2011, when it was spun off from Northrop Grumman under Mike Petters, its first chief executive 4. Its two shipyards, Ingalls in Mississippi and Newport News in Virginia, have built more ships in more ship classes than any other U.S. naval shipbuilder, the company says 2.

Revenue crept up 1 percent in 2024 to $11,535 million, then rose 8 percent in 2025 to $12,484 million, because of higher volumes at all three segments 2.

Profit did not follow: segment operating income, profit from running the businesses before accounting adjustments, fell 32 percent in 2024 to $573 million from $842 million, then recovered 25 percent to $717 million in 2025 2.

Net cumulative catch-up adjustments, revisions to profit on work already under way, were a $126 million loss in 2024 after a $118 million gain in 2023 2.

At Newport News, 2024 revenue fell 3 percent to $5,969 million and segment operating income fell 35 percent to $246 million 2. In 2025 its revenue rose 9 percent to $6,507 million on higher submarine and carrier volumes 2.

Ingalls profit fell 42 percent in 2024 to $211 million on sales of $2,767 million, then rose 10 percent to $233 million in 2025 2. Mission Technologies, the technology and services segment, grew revenue 9 percent in 2024 and 4 percent in 2025 to $3,044 million 2.

In 2025 the company agreed with the Coast Guard to end production of the 11th and final national security cutter 2. Backlog, work under contract not yet done, rose from $48,713 million to $53,139 million over 2025 2.

After the July 2026 submarine awards 5, backlog stood at $86.2 billion on 30 September 2026 3. The company said nine Block VI Virginia class and five Build II Columbia class submarine awards drove the year's new orders 3.

Ingalls: amphibious ships and destroyers

Ingalls builds non-nuclear ships for the Navy and Coast Guard: amphibious assault ships that carry Marines, guided missile destroyers and cutters 2. It is the sole builder of amphibious assault ships and one of two builders of surface combatants, the company says 2.

It has delivered 36 Arleigh Burke class destroyers, including USS Ted Stevens in 2025 2. Ingalls revenue was $3,078 million in 2025, up 11 percent, with segment operating income of $233 million 2.

In the third quarter revenue rose 5.8 percent to $876 million, but segment operating income fell to $59 million from $65 million, driven by lower performance in surface combatants 1.

Newport News: carriers and submarines

Newport News designs and builds nuclear-powered aircraft carriers and submarines, and is the exclusive prime contractor for refueling and overhauling nuclear carriers, the company says 2. It holds awards worth $15.4 billion for the carriers Enterprise and Doris Miller 2.

It builds Virginia class attack submarines with Electric Boat, a General Dynamics division, making the stern, torpedo room, sail and bow 2. It also builds modules for Columbia class missile submarines as a subcontractor to Electric Boat 2.

In July 2026 the Defense Post reported that Newport News will be the delivery yard for six of nine Block VI Virginia class boats 5. Its third-quarter revenue was $1.9 billion, with segment margin of 6.9 percent against 4.9 percent a year earlier 1.

Mission Technologies

Mission Technologies sells technology and services: battlefield data systems, cyber and electronic warfare, training, nuclear site operations, and unmanned boats and submarines 2. It has four groups: All-Domain Operations, Warfare Systems, Global Security and Unmanned Systems 2.

Its 2025 revenue was $3,044 million, up 4 percent 2. In the third quarter revenue was $792 million, up 0.6 percent, while segment margin rose to 9.0 percent from 4.3 percent 1.

The company said the quarter included a contract for 10 ROMULUS unmanned surface vessels and a $2.2 billion award for surveillance and intelligence work for the Western Hemisphere 1. Unmanned Systems serves customers in more than 30 countries 2.

Plants, people and customers

Ingalls sits on 800 acres at Pascagoula, Mississippi, and Newport News on about 550 acres in Virginia 2. About 81 percent of 2025 revenue came from the U.S. Navy 2.

HII employs about 46,000 people 3. About 45 percent are covered by 13 labor agreements, and Ingalls' five agreements were all due to expire in March 2026, the annual report said 2.

Chris Kastner is chief executive 4. On 20 October the company announced that former chief executive Mike Petters was elected to the board 4.

Rivals and problems

For surface combatants, submarines and large amphibious ships, HII competes with another large defense contractor, and smaller shipyards have entered the surface combatant market 2. Its sole-source ships, such as amphibious assault ships, could face competition later 2.

Newport News continues to see performance challenges on carriers and Virginia class submarines 2. The company is working with the Navy to align schedules because of late material on the carrier Enterprise 2.

Net unfavorable catch-up adjustments, revisions to profit on work in progress, were $28 million in 2025 2.

The umbrella, in words

HII reports three segments: Ingalls, Newport News and Mission Technologies 2. The annual report's subsidiary list names units such as Ingalls Shipbuilding, Inc., Newport News Shipbuilding and Dry Dock Company, HII Mission Technologies Corp. and HII Unmanned Systems, Inc. 6.

Mission Technologies reported equity income from nuclear and environmental joint ventures in the third quarter 1. HII counts earnings from such investments in its operating income 2.

Ingalls leases the west bank of its Pascagoula yard from the State of Mississippi under a 99-year lease, and Newport News sits on land HII owns 2.

For the year, HII expects shipbuilding revenue of $10.5 billion to $10.7 billion and a shipbuilding operating margin of 6.0 to 6.5 percent 1. It expects Mission Technologies revenue of $3.0 billion to $3.2 billion 1.

For Mission Technologies it expects a segment operating margin of approximately 6 percent and an EBITDA margin, earnings before interest, taxes, depreciation and amortization, of approximately 9 percent 1. It also expects capital spending of about $500 million 1.

It expects free cash flow of $500 million to $600 million this year, and a combined $1.2 billion to $1.3 billion over this year and next 1.

Kastner said the company's focus is shipbuilding execution, with about 90 percent of expected shipbuilding revenue through 2030 secured 1. The submarine work is expected to be completed by July 2038, the Defense Post reported 5.

The Defense Post reported that the Navy confirmed the lead Columbia class boat on track for delivery by 2028 5. The annual report said HII is working with the Navy to assess upgrades to carry into later carriers 2.