Yahoo Finance

• Revenue: $2.7 billion for the first quarter, a decrease of 2.5% compared to the same period last year.

• Earnings Per Share (EPS): $3.79 for the first quarter.

• Backlog: $48 billion at the end of the first quarter, with approximately $28 billion currently funded.

• Segment Operating Income: $171 million, an increase of less than 1% compared to the first quarter of 2024.

• Operating Margin: 5.9% for the first quarter, compared to 5.5% in the same period last year.

• Net Earnings: $149 million, compared to $153 million in the first quarter of 2024.

• Free Cash Flow: Negative $462 million for the first quarter.

• Cash Used in Operations: $395 million for the first quarter.

• Net Capital Expenditures: $67 million, or 2.5% of revenues.

• Cash Dividend: $1.35 per share, totaling $53 million in aggregate.

• Liquidity: Approximately $1.5 billion at the end of the first quarter.

• Warning! GuruFocus has detected 7 Warning Signs with HII.

Release Date: May 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Huntington Ingalls Industries Inc (NYSE:HII) reported a first-quarter revenue of $2.7 billion and earnings per share of $3.79, with a backlog of $48 billion, of which $28 billion is funded.

• The company is making progress on its operational initiatives, including a 20% year-over-year improvement in shipbuilding throughput, particularly at Ingalls Shipbuilding.

• HII has secured a Block V FY24 two-boat contract and is focusing on future contracts, such as Block VI and Columbia Build II, aligning with defense priorities.

• The company is actively involved in strategic partnerships, including an MOU with HD Hyundai Heavy Industries, to explore opportunities in ship production.

• HII's Mission Technologies Division achieved significant milestones, including delivering Lionfish small uncrewed undersea vehicles to the US Navy and developing a high-energy laser counter-drone system for the US Army.

Negative Points

• Newport News Shipbuilding is modestly behind plan due to atypical weather and delays in receiving major equipment for CVN 80, impacting construction progress.

• First-quarter revenues decreased by 2.5% compared to the same period last year, with declines at Newport News Shipbuilding, Ingalls Shipbuilding, and Mission Technologies.

• Free cash flow in the quarter was negative $462 million, at the low end of the guidance range, due to timing of incentives and normal fluctuations in program receipts and disbursements.

• Shipbuilding margins are expected to be near the low end of the annual guidance range in the second quarter, reflecting conservative guidance and ongoing risks.

• The company faces challenges in increasing workforce retention and productivity, with ongoing labor negotiations and the need for targeted wage support.