HII earnings analysis
What we found in HII's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Huntington Ingalls Industries (HII) reported Q1 2026 results with revenues of $3.1 billion and EPS of $3.79, surpassing consensus estimates of $3.02 billion in revenue and $3.72 in EPS. Revenue increased by 13% year-over-year, primarily due to strong performances across the Ingalls and Newport News segments. However, the company faced challenges, including decreased operating income and ongoing free cash outflows, leading to cautious management outlook on costs and operational efficiency.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth
- Total revenue increased by $365 million to $3.1 billion, up 13% year-over-year.
- EPS Meets Expectations
- Reported EPS of $3.79, slightly above consensus estimates of $3.72.
- Newport News Growth
- Newport News segment revenues grew 19% to $1.665 billion.
- Ingalls Segment Performance
- Ingalls revenues increased to $725 million, up 14% from previous year.
- Reduced Interest Expense
- Interest expense decreased from $28 million in Q1 2025 to $22 million in Q1 2026.
- Stable Backlog
- Total backlog rose to $54 billion, up from $53.1 billion in the prior period.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Negative Free Cash Flow
- Free cash flow remained negative at -$461 million, worsening slightly from -$462 million year-over-year.
- Decreased Operating Income
- Operating income fell 4% to $155 million compared to $161 million in Q1 2025.
- Contract Performance Headwinds
- Operating margin pressures attributed to rising costs and contract adjustments.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $3.79
- Operating margin
- 5.0%
- Segment
- Ingalls
- Segment
- Newport News
- Segment
- Mission Technologies
What they said about what is next.
HII reaffirms FY26 revenue guidance of $12.5 billion to $13.0 billion.
The filing reads about the same as the one before it.
What came before.
- 10-K · February 5, 2026
- HII reports a stronger 2025 with Q4 revenue of $3.48B and diluted EPS of $4.04, and full-year revenue of approximately $12.48B (sum of quarterly results). The company highlights exclusive positions in carrier RCOH and…
- 10-Q · October 30, 2025
- HII reported Q3 sales and service revenues of $3,192 million and diluted EPS of $3.68, both beating consensus. Revenue rose year-over-year (Q3 2025 $3,192M vs Q3 2024 $2,749M) and net earnings increased to $145 million…
- 10-Q · July 31, 2025
- HII reported Q2 revenue of $3,082 million and diluted EPS of $3.86 for the three months ended June 30, 2025. Revenue rose vs. the year-ago quarter ($2,977 million) while operating income and net earnings declined to…
- 10-K · February 6, 2025
- HII presents a stable programmatic position as the U.S. Navy’s largest shipbuilder with an order backlog of approximately $48.7 billion as of December 31, 2024 and strong program exclusivity (sole builder of LHAs,…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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