Huntington Ingalls Industries (NYSE:HII) Releases Quarterly Earnings Results, Beats Estimates By $1.12 EPS

Huntington Ingalls Industries (NYSE:HII) posted its quarterly earnings results on Thursday. The aerospace company reported $5.48 EPS for the quarter, topping analysts’ consensus estimates of $4.36 by $1.12, FiscalAI reports. Huntington Ingalls Industries had a return on equity of 12.89% and a net margin of 5.01%. The business had revenue of $3.54 billion during the quarter, compared to the consensus estimate of $3.38 billion. During the same period last year, the firm earned $3.68 earnings per share. The company’s revenue for the quarter was up 10.8% compared to the same quarter last year.

Here are the key takeaways from Huntington Ingalls Industries’ conference call:

• Record results and raised shipbuilding revenue outlook: Third-quarter sales reached $3.5 billion and diluted EPS was $5.48, while shipbuilding revenue guidance increased to $10.5 billion–$10.7 billion for 2026. The company maintained its 6%–6.5% shipbuilding operating-margin outlook.
• Exceptional contract awards expanded backlog: HII booked $32.4 billion of awards in the quarter, lifting backlog to $86.2 billion; the figures exclude the $5.1 billion CVN-75 refueling and complex overhaul contract, which will be recognized in the fourth quarter.
• Mission Technologies momentum improved: The segment delivered $792 million in revenue, a 2.4x book-to-bill ratio, and 9% operating margins. HII raised its full-year Mission Technologies operating-margin expectation to approximately 6% and EBITDA-margin expectation to approximately 9%, supported by awards including the $2.2 billion STINGRAI program and new unmanned-systems contracts.
• Shipbuilding execution remains mixed: Throughput was up approximately 9% year to date, but below the prior 15% target because Ingalls faced a slower labor recovery and is managing three ship deliveries and testing activities. Management said hiring and apprentice enrollment are improving, with more than 6,000 shipbuilders hired year to date.
• Long-term cash generation and margin expansion remain priorities: HII expects incremental shipbuilding-margin improvement in 2027 and reiterated cumulative 2026–2027 free cash flow of $1.2 billion–$1.3 billion. Approximately 90% of expected shipbuilding revenue through 2030 is already under contract, providing substantial forward visibility.

Huntington Ingalls Industries Price Performance

Shares of Huntington Ingalls Industries stock traded up $37.95 on Thursday, hitting $317.21. The company had a trading volume of 1,705,746 shares, compared to its average volume of 532,639. The business has a 50-day simple moving average of $277.60 and a 200-day simple moving average of $336.87. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.23 and a quick ratio of 1.14. The company has a market cap of $12.50 billion, a PE ratio of 18.90, a PEG ratio of 1.02 and a beta of 0.21. Huntington Ingalls Industries has a 52 week low of $255.35 and a 52 week high of $460.00.

Huntington Ingalls Industries Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, December 11th. Stockholders of record on Friday, November 27th will be paid a $1.41 dividend. The ex-dividend date of this dividend is Friday, November 27th. This represents a $5.64 dividend on an annualized basis and a dividend yield of 1.8%. This is an increase from Huntington Ingalls Industries’s previous quarterly dividend of $1.38. Huntington Ingalls Industries’s dividend payout ratio (DPR) is currently 33.61%.

Wall Street Analysts Forecast Growth

HII has been the subject of several recent research reports. TD Cowen lowered their target price on shares of Huntington Ingalls Industries from $360.00 to $340.00 and set a “buy” rating for the company in a research note on Friday, October 9th. Wolfe Research upgraded Huntington Ingalls Industries from a “peer perform” rating to an “outperform” rating and set a $364.00 price objective for the company in a research report on Friday, July 31st. Sanford C. Bernstein decreased their price objective on Huntington Ingalls Industries from $327.00 to $304.00 and set a “market perform” rating for the company in a report on Wednesday, October 14th. Citigroup raised their target price on Huntington Ingalls Industries from $349.00 to $379.00 and gave the company a “buy” rating in a research report on Friday, July 31st. Finally, Wells Fargo & Company lifted their target price on Huntington Ingalls Industries from $325.00 to $340.00 and gave the company an “equal weight” rating in a research note on Tuesday, August 4th. Five analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $361.75.

Insider Activity at Huntington Ingalls Industries

In related news, CEO Christopher Kastner sold 13,070 shares of the business’s stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $324.92, for a total transaction of $4,246,704.40. Following the sale, the chief executive officer owned 11,224 shares of the company’s stock, valued at $3,646,902.08. The trade was a 53.80% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.80% of the stock is owned by corporate insiders.

Huntington Ingalls Industries News Summary

Here are the key news stories impacting Huntington Ingalls Industries this week:

• Positive Sentiment: Q3 earnings and revenue beat expectations. HII reported adjusted earnings of $5.48 per share, versus the $4.36 analyst consensus, while revenue rose 10.8% year over year to $3.54 billion, exceeding the $3.38 billion estimate. EPS increased from $3.68 in the prior-year quarter. HII Reports Third Quarter 2026 Results
• Positive Sentiment: Shipbuilding execution improved. Higher shipbuilding volumes, contract awards and operational improvements helped drive the quarterly beat. Profit growth was also aided by the roll-off of legacy contracts, with operating margins reportedly expanding by 180 basis points to 7.4%, particularly at Newport News Shipbuilding. HII Q3 Earnings Surpass Estimates
• Positive Sentiment: Revenue visibility remains strong. Approximately 90% of shipbuilding revenue is covered by contracts through 2030, providing investors with substantial backlog visibility. Free cash flow was also reported at roughly twice net income for the quarter. Huntington Ingalls Soars on Earnings Beat
• Positive Sentiment: Unmanned-systems demand added to the bullish outlook. Progress on ROMULUS unmanned surface vessels for the U.S. Navy highlights HII’s growing autonomous maritime business and helped reinforce expectations for future defense demand. ROMULUS Production Progress
• Neutral Sentiment: Analysts remain cautious because defense-spending constraints and political gridlock could limit longer-term growth despite HII’s secure backlog and improved contract mix. Improving Contract Mix but Political Headwinds

Huntington Ingalls Industries Company Profile

Huntington Ingalls Industries, Inc (NYSE:HII) is an American defense company that designs, builds, maintains and modernizes ships for the U.S. Navy and other government customers. Its shipbuilding activities include nuclear-powered aircraft carriers, submarines, amphibious assault ships, destroyers and other surface vessels, along with fleet sustainment and modernization services.

HII operates through its Newport News Shipbuilding and Ingalls Shipbuilding divisions. Newport News Shipbuilding is involved in the construction and maintenance of nuclear-powered aircraft carriers and submarines, while Ingalls Shipbuilding builds surface combatants and amphibious ships.