| Imagery Source: Wikimedia Commons/ Huntington Ingalls Industries/Naval Sea Systems Command |
| Information Source: Huntington Ingalls Industries |
| HII (NYSE: HII) today reported results for the first quarter of fiscal 2025. |
| Highlights |
- First quarter revenues were $2.7 billion
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- First quarter net earnings were $149 million, or $3.79 diluted earnings per share
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- New contract awards of $2.1 billion, resulting in a backlog of $48 billion
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- Company reaffirms previously issued financial guidance1
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| 1 The financial outlook, expectations and other forward-looking statements provided by the company for 2025 and beyond reflect the company’s judgment based on information available at the time of this release. |
| First Quarter Results |
| First quarter 2025 revenues of $2.7 billion were down 2.5% from the first quarter of 2024, driven by lower volume at Newport News Shipbuilding, Ingalls Shipbuilding and Mission Technologies. |
| Operating income in the first quarter of 2025 was $161 million and operating margin was 5.9%, compared to $154 million and 5.5%, respectively, in the first quarter of 2024. The increases were primarily driven by a more favorable operating FAS/CAS adjustment, as well as better segment operating results compared to the prior year. |
| Segment operating income2 in the first quarter of 2025 was $171 million and segment operating margin2 was 6.3%, compared to $170 million and 6.1%, respectively, in the first quarter of 2024. The increases were driven primarily by stronger results at Mission Technologies and Newport News Shipbuilding, largely offset by results at Ingalls Shipbuilding. |
| Net earnings in the quarter were $149 million, compared to $153 million in the first quarter of 2024. Diluted earnings per share in the quarter were $3.79, compared to $3.87 in the first quarter of 2024. |
| Net cash used in operating activities in the quarter was $395 million, and free cash flow2 was negative $462 million, compared to net cash used in operating activities of $202 million and free cash flow1 of negative $274 million in the first quarter of 2024. |
| New contract awards in the first quarter of 2025 were $2.1 billion, bringing total backlog to approximately $48.0 billion as of March 31, 2025. “We are encouraged by the pace of our operational initiatives in 2025. |
| We expect throughput to ramp as we move through the year and, coupled with our cost savings initiatives, we expect steady improvement in support of our operational and financial goals. We are also very supportive of the administration's commitment to expand our nation's shipbuilding capabilities and the maritime industrial base," said Chris Kastner, HII’s president and CEO. |
| Ingalls Shipbuilding revenues for the first quarter of 2025 were $637 million, a decrease of $18 million, or 2.7%, from the same period in 2024, primarily driven by lower volumes in amphibious assault ships. |
| Ingalls Shipbuilding segment operating income for the first quarter of 2025 was $46 million, a decrease of $14 million from the same period in 2024. Segment operating margin in the first quarter of 2025 was 7.2%, compared to 9.2% in the same period last year. The decreases were primarily driven by lower performance on amphibious assault ships. |
| Key Ingalls Shipbuilding milestones for the quarter: |
- Launched guided missile destroyer Jeremiah Denton (DDG 129)
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- Christened amphibious transport dock Harrisburg (LPD 30)
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- Began fabrication of amphibious transport dock Philadelphia (LPD 32)
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| Newport News Shipbuilding revenues for the first quarter of 2025 were $1.4 billion, a decrease of $38 million, or 2.6%, from the same period in 2024. The decrease was primarily driven by lower volumes in aircraft carriers and naval nuclear support services, partially offset by higher volumes in the Columbia-class submarine program. |
| Newport News Shipbuilding segment operating income for the first quarter of 2025 was $85 million, an increase of $3 million from the same period in 2024. Segment operating margin in the first quarter of 2025 was 6.1% compared to 5.7% in the same period last year. The increases were primarily driven by contract incentives on the Virginia-class submarine program and higher volumes on the Columbia-class submarine program, partially offset by lower performance on aircraft carrier construction. |
| Key Newport News Shipbuilding milestones for the quarter: |
- Closed the acquisition of the South Carolina advanced manufacturing facility and began work at Newport News Shipbuilding - Charleston Operations
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- Successfully installed the first valve manifold assembly created by additive manufacturing technology on a new construction aircraft carrier.
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| Mission Technologies revenues for the first quarter of 2025 were $735 million, a decrease of $15 million, or 2.0%, from the same period in 2024. The decrease was primarily due to lower volumes in C5ISR, partially offset by higher volumes in cyber, electronic warfare & space. |
| Mission Technologies segment operating income for the first quarter of 2025 was $40 million, compared to $28 million in the first quarter of 2024. Segment operating margin in the first quarter of 2025 was 5.4%, compared to 3.7% in the same period last year. The increases were primarily driven by higher performance in cyber, electronic warfare & space and uncrewed systems. |
| Mission Technologies results included approximately $22 million of amortization of purchased intangible assets in the first quarter of 2025, compared to approximately $25 million in the same period last year. |
| Mission Technologies' EBITDA margin1 in the first quarter of 2025 was 9.1%, an increase from 7.7% in the first quarter of 2024. |
| Key Mission Technologies milestones for the quarter: |
- Awarded a task order valued at approximately $296 million to support U.S. Air Forces in Europe-Air Forces in Africa’s (USAFE-AFAFRICA) air and space operations around the globe
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- Awarded a contract to deliver the new Australian Submarine Supplier Qualification (AUSSQ) pilot program over the next two years to accelerate the identification and qualification of Australian suppliers and products into the United States submarine industrial base
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- Awarded a task order valued at approximately $182 million to provide logistics support for U.S. Air Force F-16 pilot training devices
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- Selected to develop an open architecture High-Energy Laser weapon system for the U.S. Army’s Rapid Capabilities and Critical Technologies Office
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- Awarded a $147 million contract to support shipboard and shore-based combat training services for the U.S. Navy
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| HII Financial Outlook1 |
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- FY25 shipbuilding revenue2 between $8.9 and $9.1 billion; expect shipbuilding operating margin2 between 5.5% and 6.5%
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- FY25 Mission Technologies revenue between $2.9 to $3.1 billion, Mission Technologies segment operating margin2 between 4.0% and 4.5%; and Mission Technologies EBITDA margin2 between 8.0% and 8.5%
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- FY25 free cash flow2,3 between $300 and $500 million
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| For the full document, click the link below |
| Huntington Ingalls Industries |
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