Huntington Ingalls Industries, Inc.
- Open
- 327.54
- Day high
- 328.35
- Day low
- 322.64
- Prev close
- 326.80
- Volume
- 167K
- Mkt cap
- $12.9B
- P/E (TTM)
- 19.4
- EPS (TTM)
- $16.80
- P/B
- 2.4
- P/S
- 1.0
- Yield
- 1.68%
- Per share
- $5.49
- ▼Insiders net selling -$5.6M over the last 3 months (0 open-market buys, 3 sales)
- 🏛Institutions mixed (13F)
Huntington Ingalls Industries, Inc. (HII) is a Industrials company listed on NYSE. The stock is up 21% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 3 sales (SEC Form 4). Drillr has 2 published research articles covering HII.
Huntington Ingalls Industries, Inc. (HII) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
HII earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 30, 2026 | $3.79 | $5.27 | +39.1% | $3.4B | +8.4% |
| May 5, 2026 | $3.70 | $3.79 | +2.4% | $3.1B | +2.6% |
| Feb 5, 2026 | $3.72 | $4.04 | +8.6% | $3.5B | +18.4% |
| Oct 30, 2025 | $3.30 | $3.68 | +11.5% | $3.2B | +8.0% |
| Jul 31, 2025 | $3.23 | $3.86 | +19.5% | $3.1B | +4.4% |
| May 1, 2025 | $2.90 | $3.79 | +30.7% | $2.7B | -8.4% |
| Feb 6, 2025 | $3.28 | $3.15 | -4.0% | $3.0B | +4.9% |
| Oct 31, 2024 | $3.86 | $2.56 | -33.7% | $2.7B | -4.1% |
| Aug 1, 2024 | $3.62 | $4.38 | +21.0% | $3.0B | +4.6% |
| May 2, 2024 | $3.53 | $3.87 | +9.6% | $2.8B | +0.4% |
| Feb 1, 2024 | $4.28 | $6.90 | +61.2% | $3.2B | +14.3% |
| Nov 2, 2023 | $3.41 | $3.70 | +8.5% | $2.8B | +3.8% |
HII insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 11, 2026 | Harker Victoria Ddirector | Sell | 723 | $333.17 |
| Aug 11, 2026 | Kastner Christopher Ddirector, officer: Director, President & CEO | Sell | 13,070 | $324.92 |
| Jul 2, 2026 | DENAULT LEO Pdirector | Grant | 174 | $278.97 |
| Jul 2, 2026 | McKibben Tracy Bdirector | Grant | 174 | $278.97 |
| Jul 2, 2026 | Jimenez Frank Rdirector | Grant | 174 | $278.97 |
| Jul 2, 2026 | Collins Augustus Ldirector | Grant | 174 | $278.97 |
| Jul 2, 2026 | SCHIEVELBEIN THOMAS Cdirector | Grant | 174 | $278.97 |
| Jul 2, 2026 | DONALD KIRKLAND Hdirector | Grant | 174 | $278.97 |
| Jul 2, 2026 | O'Sullivan Stephanie L.director | Grant | 174 | $278.97 |
| Jul 2, 2026 | Faller Craig S.director | Grant | 174 | $278.97 |
| Jul 2, 2026 | Stanage Nick Ldirector | Grant | 174 | $278.97 |
| Jul 2, 2026 | Harker Victoria Ddirector | Grant | 174 | $278.97 |
| Jul 1, 2026 | DENAULT LEO Pdirector | Grant | 145 | $279.89 |
| Jun 15, 2026 | Stiehle Thomas E.officer: Ex. VP and CFO | Grant | 18 | — |
| Jun 15, 2026 | Collins Augustus Ldirector | Grant | 50 | — |
Source: HII SEC Form 4 filings, latest Aug 11, 2026. For informational purposes only — not investment advice.
See the full HII insider & 13F page →HII research & analysis
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Huntington Ingalls Industries, Inc. company profile
Overview
Huntington Ingalls Industries, Inc. (NYSE:HII) is America's largest military shipbuilding company, founded in 1886 and headquartered in Newport News, Virginia. The company was spun off from Northrop Grumman in 2011 and has since established itself as the sole builder of nuclear-powered aircraft carriers for the U.S. Navy and one of only two companies capable of designing and building nuclear-powered submarines. With a workforce of over 44,000 employees and a backlog exceeding $48 billion, HII operates as a critical component of America's defense industrial base, providing essential naval vessels and advanced technology solutions to the U.S. Navy, Coast Guard, and other government agencies.
Business
Huntington Ingalls Industries operates in the defense contracting sector, specifically focusing on naval shipbuilding and advanced technology solutions. The company's business is organized into three primary segments that collectively serve the U.S. military and allied nations. The Ingalls Shipbuilding division, representing approximately 25% of total revenue, specializes in designing and constructing non-nuclear surface vessels. This includes amphibious assault ships that serve as floating bases for Marine Corps operations, destroyers equipped with advanced radar and missile systems for fleet protection, and national security cutters for the U.S. Coast Guard. These vessels are complex platforms that can cost between $1-4 billion each and require 3-7 years to complete. The Newport News Shipbuilding division generates roughly 50% of company revenue and holds the exclusive contract to build nuclear-powered aircraft carriers for the U.S. Navy. These massive vessels, each costing over $13 billion, serve as mobile airbases capable of projecting American military power globally. The division also constructs Virginia-class attack submarines alongside General Dynamics, with each submarine costing approximately $3.5 billion. Additionally, Newport News provides nuclear refueling services, extending the operational life of existing naval vessels. The Mission Technologies segment contributes about 25% of revenue and offers high-technology services including cybersecurity, artificial intelligence applications, unmanned systems, and nuclear facility management. This division serves not only the Department of Defense but also intelligence agencies, the Department of Energy, and civilian government customers. The segment has shown consistent growth, expanding at nearly 9% annually as government agencies increasingly rely on advanced technology solutions.
Revenue model
Huntington Ingalls generates revenue primarily through long-term government contracts, operating under a business model that combines product manufacturing with ongoing service provision. The company's shipbuilding operations work on cost-plus and fixed-price contracts with the U.S. Navy, where payments are received based on construction milestones and delivery schedules. These contracts typically span 5-10 years and include provisions for cost escalation and performance incentives. The company's customers are predominantly government entities, with the U.S. Navy representing approximately 70% of total revenue, followed by the U.S. Coast Guard and various defense and intelligence agencies. International sales remain minimal, though the company is exploring partnerships with allied nations. Several factors significantly impact HII's profitability margins. Labor availability and productivity represent the most critical challenge, as the company requires highly skilled craftspeople capable of working with nuclear propulsion systems and advanced materials. Post-COVID workforce disruptions have reduced productivity levels, with the company hiring over 6,000 new employees annually to maintain capacity. Supply chain inflation affects material costs, though many contracts include escalation clauses that provide some protection. Contract mix also influences margins, with newer contracts negotiated under current economic conditions typically offering better terms than legacy agreements signed before recent inflationary pressures. The company's working capital requirements create significant cash flow variability, as large shipbuilding projects require substantial upfront investment before milestone payments are received. This dynamic means free cash flow can fluctuate dramatically between quarters, with the company typically generating stronger cash flows in the fourth quarter when major deliveries occur.
Competitive moat
Huntington Ingalls possesses a formidable competitive moat built on several interconnected barriers to entry that would be nearly impossible for competitors to replicate. The company's exclusive position as the sole builder of nuclear aircraft carriers represents an unassailable franchise, as the specialized facilities, workforce expertise, and security clearances required would take decades and tens of billions of dollars for any competitor to develop. The company's duopoly position in submarine construction alongside General Dynamics provides additional protection, as the U.S. government maintains this two-supplier structure for national security reasons. The nuclear propulsion expertise required for these vessels creates an additional technical barrier, as workers must obtain specialized security clearances and undergo years of training to work with nuclear systems. Regulatory and security barriers further strengthen the moat, as any potential competitor would need to navigate complex government approval processes, obtain facility security clearances, and demonstrate technical competency in nuclear engineering. The company's shipyards in Virginia and Mississippi represent billions of dollars in specialized infrastructure that cannot be easily replicated. However, the moat faces some limitations. The company's dependence on government budgets creates vulnerability to political changes and fiscal constraints. Additionally, labor shortages in skilled trades represent a significant operational challenge that could impact the company's ability to execute contracts efficiently. The concentration of revenue from a single customer (the U.S. government) also creates risk, though this is partially mitigated by the essential nature of naval defense and the long-term strategic importance of maintaining domestic shipbuilding capabilities.
Risks & safety
The company presents a moderate margin of safety with some concerning liquidity metrics but strong long-term contract visibility. • Liquidity concerns: Current ratio of 1.07 indicates tight working capital management, with cash position of $167 million appearing low relative to $2.7 billion quarterly revenue. Free cash flow of -$462 million in Q1 2025 reflects typical seasonal patterns but requires monitoring. • Debt levels: Debt-to-equity ratio of 0.71 is manageable for a defense contractor, though total liabilities of $7.3 billion against $4.8 billion equity suggests leverage. Interest coverage appears adequate given EBITDA levels. • Valuation metrics: Trading at 13.5x earnings and 17.5x EBITDA, which appears reasonable for a defense contractor with monopolistic positions. Price-to-book of 1.68 suggests modest premium to tangible assets. • Contract backlog: $48+ billion backlog provides strong revenue visibility over 3-5 years, with additional $50+ billion in expected awards over next 24 months offering growth certainty. • Other considerations: Government customer concentration reduces credit risk but creates political/budget risk. Working capital intensity requires careful cash management during project execution phases.
Recent development
Over the past several years, Huntington Ingalls has undertaken significant strategic initiatives to address operational challenges and position for future growth. The company has prioritized workforce development and retention, hiring over 6,000 craft personnel annually while shifting strategy from entry-level hiring to recruiting experienced shipbuilders. This includes the acquisition of W International, adding 500 skilled workers, and partnerships with training institutions to develop specialized skills. The company has launched an enterprise-wide cost reduction program targeting $250 million in annual savings through improved operational efficiency, strategic outsourcing, and supply chain optimization. Management expects to increase outsourcing by 30% in 2025, moving over 1 million hours of work to external suppliers while maintaining quality standards. Technology advancement has become increasingly important, with the Mission Technologies segment expanding into unmanned systems, artificial intelligence, and cybersecurity solutions. The company delivered its first Lionfish small uncrewed undersea vehicles and is positioning to scale production to hundreds of units for both domestic and international markets. Contract negotiation strategy has evolved significantly, with management focusing on securing more predictable pricing terms and appropriate risk allocation in new agreements. The company is working to transition away from pre-COVID contracts that lack adequate inflation protection, expecting most legacy contracts to roll off by 2027-2028. International partnerships, including exploration of collaboration with Hyundai Heavy Industries, represent potential new revenue streams while maintaining focus on domestic production requirements.
HII company profile · for informational purposes only — not investment advice.
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