Huntington Ingalls Industries (NYSE:HII) Issues Earnings Results

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

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 Trading Up 0.9%

Shares of Huntington Ingalls Industries stock traded up $2.77 on Friday, reaching $318.98. The company had a trading volume of 220,414 shares, compared to its average volume of 531,014. The firm’s 50-day moving average price is $277.71 and its two-hundred day moving average price is $336.52. The firm has a market cap of $12.57 billion, a price-to-earnings ratio of 19.02, a P/E/G ratio of 1.04 and a beta of 0.21. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.23 and a quick ratio of 1.14. Huntington Ingalls Industries has a 1 year low of $255.35 and a 1 year high of $460.00.

Huntington Ingalls Industries Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 11th. Shareholders of record on Friday, November 27th will be given a dividend of $1.41 per share. This represents a $5.64 dividend on an annualized basis and a yield of 1.8%. This is a boost from Huntington Ingalls Industries’s previous quarterly dividend of $1.38. The ex-dividend date is Friday, November 27th. Huntington Ingalls Industries’s dividend payout ratio (DPR) is currently 32.90%.

Key Headlines Impacting Huntington Ingalls Industries

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

• Positive Sentiment: Q3 earnings beat estimates by a wide margin. HII reported earnings of $5.48 per share versus the $4.36 consensus estimate, while revenue rose 10.8% year over year to $3.54 billion, ahead of the $3.38 billion forecast. Net income increased 48.9% from the prior-year quarter. HII Reports Third Quarter 2026 Results
• Positive Sentiment: Margins and cash flow improved. Third-quarter operating margin expanded by approximately 180 basis points to 7.4%, helped by the completion of weaker legacy contracts and improved performance at Newport News Shipbuilding. Free cash flow was reportedly about twice net income, strengthening the quality of the earnings beat. Huntington Ingalls: Improving Contract Mix, But Looming Gridlock Limits Upside
• Positive Sentiment: Long-term revenue visibility remains strong. Approximately 90% of shipbuilding revenue is covered by contracts through 2030. Higher shipbuilding volumes, new contract awards and demand for ROMULUS unmanned surface vessels supported the quarter, while management raised its shipbuilding outlook. Huntington Ingalls Soars on Earnings Beat
• Neutral Sentiment: Analysts maintain a generally favorable view. Wall Street analysts collectively rate HII “Moderate Buy,” providing support for the stock after the earnings-driven rally, though this is not a new company-specific catalyst. HII Stock Rated Moderate Buy
• Neutral Sentiment: HII appointed Renee Swan as executive vice president and chief human resources officer, effective Dec. 7. Swan joins from Atmus Filtration Technologies. The leadership change may support organizational execution but is unlikely to materially affect near-term earnings. HII Appoints Renee Swan
• Negative Sentiment: Investors still face growth and political risks. Analysts caution that defense-spending constraints and potential congressional gridlock could limit future growth despite HII’s secure backlog and better contract mix. Political and Growth Risks

Insider Buying and Selling at Huntington Ingalls Industries

In other news, CEO Christopher Kastner sold 13,070 shares of the stock in a transaction 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 transaction, the chief executive officer owned 11,224 shares of the company’s stock, valued at approximately $3,646,902.08. This represents a 53.80% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.80% of the company’s stock.

Analysts Set New Price Targets

A number of equities analysts have issued reports on the company. The Goldman Sachs Group reaffirmed a “conviction-buy” rating and issued a $406.00 target price on shares of Huntington Ingalls Industries in a report on Friday. Citigroup lifted their price objective on Huntington Ingalls Industries from $349.00 to $379.00 and gave the stock a “buy” rating in a report on Friday, July 31st. Wolfe Research raised shares of Huntington Ingalls Industries from a “peer perform” rating to an “outperform” rating and set a $364.00 price objective for the company in a report on Friday, July 31st. Wells Fargo & Company raised their target price on shares of Huntington Ingalls Industries from $325.00 to $340.00 and gave the stock an “equal weight” rating in a research report on Tuesday, August 4th. Finally, Sanford C. Bernstein lowered their price target on Huntington Ingalls Industries from $327.00 to $304.00 and set a “market perform” rating on the stock in a report on Wednesday, October 14th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $359.38.

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.