Huntington Ingalls Q2 revenue rises 10.9%, lifts FY26 shipbuilding forecast

Overview

• U.S. shipbuilder's fiscal Q2 revenue rose 10.9% yr/yr, driven by Newport News and Ingalls growth

• Net earnings and EPS increased sharply from prior year

• Company raised FY26 shipbuilding revenue and margin guidance on strong demand and throughput

Outlook

• HII raises FY26 shipbuilding revenue guidance to $10.2 bln-$10.4 bln

• Company lifts low end of FY26 shipbuilding operating margin outlook to 6.0%-6.5%

• HII reaffirms FY26 free cash flow guidance of $500 mln-$600 mln

Result Drivers

• NEWPORT NEWS GROWTH - Higher volumes in aircraft carriers and submarines drove revenue and operating income gains at Newport News Shipbuilding

• INGALLS SHIPBUILDING VOLUMES - Increased amphibious assault ship volumes boosted revenue at Ingalls Shipbuilding

• MISSION TECHNOLOGIES MIXED - Lower All-Domain Operations volumes and absence of prior-year settlement reduced revenue, but higher equity income from joint ventures lifted segment operating income

Company press release: ID:nGNXBzhLD

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace defense peer group is "buy"

• Wall Street's median 12-month price target for Huntington Ingalls Industries Inc is $349.00, about 24.5% above its July 29 closing price of $280.40

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 21 three months ago

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)