Delayed multi-ship contracts for 15 attack and ballistic missile submarines are finally expected in the second quarter of 2026, Huntington Ingalls Industries (HII) CEO Chris Kastner said in a company earnings call Tuesday.
Kastner said the company is “making good progress on the [Virginia-class submarine] Block VI and the next Columbia contract with awards expected in the second quarter.”
The Navy has been negotiating an overdue deal with HII and submarine prime contractor General Dynamics Electric Boat on awards covering 10 Block VI Virginia-class attack submarines (SSNs) and five Columbia-class nuclear ballistic missile submarines (SSBNs). The two shipbuilders split production of each submarine.
Beyond the ship program specifics, Kastner said HII had a “solid first quarter” with shipbuilding sales growth of 18% year over year, driven by increasing throughput in the shipyards as well as broader government and industry efforts to improve the maritime industrial base.
HII posted revenue of $3.1 billion, up 13% from a year ago while operating income was down $155 million with an operating margin of 5% compared to $161 million and 5.9% in the first quarter of 2025. HII said the segment’s lower operating income was driven by lower equity income from nuclear and environmental joint ventures, partially offset by higher performance in warfare systems.
First quarter earnings at $149 million are the same as a year ago, with diluted earnings per share also matching at $3.79.
HII cited new contract awards in the first quarter of the year totaled $4 billion, bringing the backlog to $54 billion.
HII’s Newport News Shipbuilding segment had a 19% increase in revenue from nearly $1.4 billion to $1.7 billion. Segment operating income rose 3.5% from $85 to $88 million due to higher volumes of aircraft carrier, submarine and naval nuclear support services.
Exchange Monitor affiliate Defense Daily first posted a version of this story.