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Huntington Ingalls Industries, Inc.

Huntington Ingalls Industries, Inc. Q1 FY2026 earnings call

May 5, 2026 · fiscal period ended 2026-03

EPS · actual vs est

$3.79 / $3.71Beat +2.2%

Revenue · actual vs est

$3.10B / $3.02BBeat +2.7%
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Summary

Generated 2026-05-05

Management highlights

Chris started by discussing results, with first quarter sales $3.1 billion and diluted EPS $3.79. Ingalls had stern release on LPD 31 Pittsburgh, etc. Mission Technologies had strong sales. Operational initiatives include enhancing shipbuilding throughput, growing trusted industrial-based network, and securing new contract awards. Kerry Wilkinson discussed Newport News updates like CVN milestones. Tom provided financial performance details.

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Segment performance

Consolidated first quarter sales were $3.1 billion. Shipbuilding revenue was up 17.6% compared to Q1 2025. Ingalls revenues were $725 million, up 13.8%, with segment operating income $49 million and margin 6.8%. Newport News revenues were $1.7 billion, up 19.3%, with segment operating income $88 million and margin 5.3%. Mission Technologies revenues were $748 million, up 1.8%, with segment operating income $35 million and margin 4.7%.

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Guidance

Reaffirming 2026 and medium-term guidance. Expect shipbuilding revenue ~$2.4 billion and operating margins 5.7%-6% in Q2. Mission technologies revenue ~$750 million and margin ~4%. Free cash flow in Q2 between -$100M and $100M. Tax rate expected to be 21% in Q2 but 17% for 2026.

View in transcript ↓

Q&A highlights

Q: Scott Mikus asked about battleship and frigate as upside drivers and auxiliary ships.

A: Chris said evaluate on case-by-case.

Q: Scott Doishla asked about 2Q guide and Newport News contract awards.

A: Tom said factor in contract mod timing.

Q: David Strauss asked about Ingalls margin and shipbuilding revenue profile.

A: Chris and Tom discussed Ingalls margin and linear revenue growth.

Q: John Godin asked about 2026 and 2027 milestones.

A: Chris said milestones towards back half.

Q: Seth Seifman asked about carrier performance and uncrewed business.

A: Carrie and Chris discussed carrier progress and uncrewed timeline.

Q: Gautam Kahan asked about fit-up delivery schedules and wage increases.

A: Chris and Kerry discussed delivery schedules and wage impact on attrition.

Q: Ron Edstein asked about outsourcing and South Carolina facility.

A: Chris and Kerry discussed outsourcing and Charleston progress.

Q: Noah Popenac asked about shipbuilding revenue growth and nuclear subcontracts.

A: Tom discussed revenue growth and nuclear contract approval.

Q: Miles Walton asked about carrier design review and workforce.

A: Chris and Carrie discussed carrier review and workforce growth

View in transcript ↓

Key numbers

Reported versus consensus

Earnings calendar feed

MetricReportedConsensusDeltaPrior year
EPS$3.79$3.71+2.2%$3.79
Revenue$3.10B$3.02B+2.7%$2.73B

Transcript

May 5, 2026

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Prior quarters

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