Huntington Ingalls Industries (HII) Q4 2025 earnings summary

Executive summary

• 2025 revenue reached $12.5 billion, up 8.2% year-over-year, with EPS at $15.39 and all divisions achieving record results and major shipbuilding milestones, including the delivery of DDG-128, SSN 798, and Ted Stevens.

• Shipbuilding throughput increased 14% in 2025, with a 15% improvement targeted for 2026, supported by significant hiring and outsourcing.

• Segment operating income for 2025 was $717 million, up 25.1% year-over-year, with improved contract performance and volume growth.

• Free cash flow for 2025 was $800 million, with a year-end cash balance of $774 million and total liquidity of $2.5 billion.

• Over $400 million invested in capital improvements in 2025, with hundreds of millions targeted for 2026.

Financial highlights

• Q4 2025 revenues were $3.5 billion, up 16% year-over-year, with growth across all segments.

• Full-year 2025 net earnings were $605 million, up from $550 million in 2024; diluted EPS was $15.39, up from $13.96.

• Segment operating income for 2025 was $717 million (5.7% margin), up from $573 million (5%) in 2024.

• Free cash flow for 2025 was $800 million, exceeding guidance, with $396 million in capital expenditures.

• Ended 2025 with $774 million in cash and $2.5 billion in liquidity.

Outlook and guidance

• 2026 shipbuilding revenue expected between $9.7 and $9.9 billion, with margins of 5.5%-6.5%.

• Mission Technologies 2026 revenue guidance is $3.0-$3.2 billion, with margins around 5% and EBITDA margins of 8.4%-8.6%.

• 2026 free cash flow projected at $500-$600 million; capital expenditures to be $500M–$600M or 4%-5% of sales.

• Medium-term consolidated top-line CAGR raised to 6%, targeting $16B+ enterprise revenue by 2030, with upside from new Navy programs.

• 2026 free cash flow expected to be negative $600M due to Q4 2025 pull forward.