Huntington Ingalls Industries (HII) last Thursday Oct. 30 posted strong third quarter results on ample top and bottom-line performance at its shipbuilding operations combined with a solid contribution from the Mission Technologies segment.
Net income jumped 44% to $145 million, $3.68 earnings per share (EPS), from $101 million ($2.56 EPS), handily topping consensus estimates by 32 cents per share. Through September, net income is up 4% to $446 million ($11.35 EPS).
Third quarter revenue was $3.2 billion, up 16.1% from the third quarter of 2024, driven by growth in multiple sectors, according to the earnings press release.
Sales were 16% higher, a record $3.2 billion in the quarter versus $2.7 billion a year ago, and so far in 2025 are up 6% to $9 billion.
The strong earnings performance was led by the Newport News Shipbuilding segment, which more than quintupled operating income to $80 million primarily due to negative adjustments a year ago on the Virginia-class submarine program and aircraft carriers. Sales in the segment were higher on submarine and aircraft carrier work.
The Ingalls Shipbuilding segment also delivered on the bottom-line up 33% to a record $828 million on higher sales of surface combatants. Mission Technologies generated a 3% rise in operating income despite an 11% bump in sales across a broad range of solutions that tilted toward lower-margin work.
Overall, shipbuilding sales increased 18% in the segment.
Despite the strong results, HII left the top-end of its shipbuilding sales outlook for 2025 intact at $9.1 billion and raised the low end by $100 million to $9 billion. Guidance for shipbuilding margin is unchanged. The shipbuilding guidance is conservative and there are “tailwinds” if positive trends continue, Tom Stiehle, HII chief financial officer, said.
Awards are still expected this year for the Virginia-class Block VI submarines and the second Columbia-class ballistic missile submarine, Stiehle said.
Huntington Ingalls Industries subsidiaries are part of major joint ventures doing business in the Department of Energy’s nuclear weapons complex.
Exchange Monitor affiliate Defense Daily first published this story.