Huntington Ingalls Reports Lower Q1 Profit Amid Cost Pressures
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy HII?
Source: Newsfilter
- Operating Margin Decline: Huntington Ingalls reported a first-quarter operating margin of 5%, down 80 basis points from 5.9% last year, indicating significant cost pressures from inflation and global trade volatility that could impact future profitability.
- Sales Growth Challenges: While sales in the Newport News shipbuilding segment rose 19.3% to $1.67 billion, the overall cost of product sales increased by 20% to $1.74 billion, highlighting the ongoing challenges in cost management despite strong demand.
- Negative Market Reaction: The company's shares fell nearly 3% in premarket trading, reflecting investor concerns about the future outlook amid uncertainties in global supply chains and U.S. tariff policies, which may lead to decreased market confidence.
- Financial Performance Exceeds Expectations: Despite these challenges, Huntington's total quarterly revenue reached $3.1 billion, surpassing Wall Street estimates of $3.02 billion, demonstrating the company's solid market position amid strong underlying demand for defense products.
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Analyst Views on HII
Wall Street analysts forecast HII stock price to fall
6 Analyst Rating
4 Buy
1 Hold
1 Sell
Moderate Buy
Current: 363.370
Low
300.00
Averages
344.80
High
376.00
Current: 363.370
Low
300.00
Averages
344.80
High
376.00
About HII
Huntington Ingalls Industries, Inc. is a global, all-domain defense provider. The Company delivers ships and all-domain solutions in service of the nation. It delivers critical capabilities extending from ships to unmanned systems, cyber, ISR, AI/ML and synthetic training. It operates through three segments: Ingalls Shipbuilding (Ingalls), Newport News Shipbuilding (Newport News), and Mission Technologies. Through its Ingalls segment, the Company designs and constructs non-nuclear ships for the United States Navy and Coast Guard, including amphibious assault ships, expeditionary warfare ships, surface combatants, and national security cutters (NSC). The core business of its Newport News segment is designing and constructing nuclear-powered aircraft carriers and submarines, and the refueling and overhaul and the inactivation of nuclear-powered aircraft carriers. The Company’s Mission Technologies segment develops integrated solutions that enable connected, all-domain force.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Huntington Ingalls Set to Release Q1 Earnings on May 5
- Earnings Announcement: Huntington Ingalls is set to announce its Q1 2023 earnings on May 5 before the market opens, with consensus EPS estimates at $3.73 and revenue expected to reach $3.02 billion, reflecting an 11.9% year-over-year growth potential in the defense sector.
- Earnings Estimate Fluctuations: Over the last three months, EPS estimates have seen one upward revision and four downward adjustments, while revenue estimates experienced four upward revisions and one downward, indicating market divergence regarding the company's future performance, which could impact investor confidence.
- Contract Award: Huntington Ingalls secured a $282.9 million contract for Navy frigate support work, which not only strengthens its order backlog but also underscores its significant position among defense contractors.
- Defense Spending Plan: The Pentagon detailed Trump's $1.5 trillion defense plan, focusing on missiles, drones, and ships, positioning Huntington Ingalls to benefit as a key contractor, further solidifying its market position.
See More
Huntington Ingalls Reports Lower Q1 Profit Amid Cost Pressures
- Operating Margin Decline: Huntington Ingalls reported a first-quarter operating margin of 5%, down 80 basis points from 5.9% last year, indicating significant cost pressures from inflation and global trade volatility that could impact future profitability.
- Sales Growth Challenges: While sales in the Newport News shipbuilding segment rose 19.3% to $1.67 billion, the overall cost of product sales increased by 20% to $1.74 billion, highlighting the ongoing challenges in cost management despite strong demand.
- Negative Market Reaction: The company's shares fell nearly 3% in premarket trading, reflecting investor concerns about the future outlook amid uncertainties in global supply chains and U.S. tariff policies, which may lead to decreased market confidence.
- Financial Performance Exceeds Expectations: Despite these challenges, Huntington's total quarterly revenue reached $3.1 billion, surpassing Wall Street estimates of $3.02 billion, demonstrating the company's solid market position amid strong underlying demand for defense products.
See More
HII Reports Strong Q1 2026 Results with $3.1B Revenue
- Significant Revenue Growth: HII's Q1 2026 revenue reached $3.1 billion, a 13.4% increase year-over-year, primarily driven by growth at Newport News and Ingalls Shipbuilding, indicating strong demand and enhanced market position in the defense sector.
- Stable Net Earnings: The company reported net earnings of $149 million with diluted earnings per share of $3.79, unchanged from Q1 2025, demonstrating stability in profitability despite operational cost challenges.
- Robust New Contract Awards: New contract awards totaled $4.0 billion in Q1, bringing the total backlog to $54.0 billion as of March 31, 2026, reflecting the company's competitiveness in the defense contracting market and sustainability of future revenues.
- Operational Efficiency Improvement: HII's operating income for Q1 was $155 million with an operating margin of 5.0%, although down from the previous year, the company continues to focus on driving efficiency and expanding its industrial base network to support future growth strategies.
See More
HII Anticipates Approximately $2.4 Billion in Q2 Shipbuilding Revenue - Presentation
- Q2 Shipbuilding Expectations: The company anticipates a shipbuilding revenue of approximately $2.4 billion for the second quarter.
- Financial Presentation: Details regarding the financial outlook and projections will be shared in an upcoming presentation.
See More
HII ANTICIPATES AROUND 6% REVENUE GROWTH IN THE MEDIUM TERM - PRESENTATION
- Medium-Term Growth Expectation: The forecast indicates a medium-term growth rate of approximately 6%.
- Presentation Context: The information is presented in a structured format, likely aimed at stakeholders or an audience interested in economic projections.
See More
HII Hosts Annual Signing Day Celebrating Shipbuilder Academy Graduates
- Record Number of Graduates: HII's Ingalls Shipbuilding division recognized 49 high school seniors during its Signing Day, who completed the Ingalls Shipbuilder Academy and accepted contingent job offers, showcasing the company's success in developing future shipbuilding talent.
- Diverse Career Paths: Each graduate signed a contingent employment offer during the event, covering various crafts such as welding, painting, pipefitting, joining, and electrical work, indicating the program's role in providing students with diverse career options and contributing to regional economic growth.
- Educational Investment Returns: Since the program's launch in 2016, over 500 students have graduated and transitioned to skilled careers at Ingalls, reflecting the academy's significant impact on enhancing local skilled labor and meeting industry demands, further solidifying HII's leadership in the defense sector.
- Long-term Strategic Planning: The Ingalls Shipbuilder Academy serves as a cornerstone of the company's long-term workforce development strategy, and through partnerships with 13 high schools, HII not only contributes to technical talent cultivation but also enhances its community impact and corporate responsibility in the Gulf Coast region.
See More
Huntington Ingalls Set to Release Q1 Earnings on May 5
- Earnings Announcement: Huntington Ingalls is set to announce its Q1 2023 earnings on May 5 before the market opens, with consensus EPS estimates at $3.73 and revenue expected to reach $3.02 billion, reflecting an 11.9% year-over-year growth potential in the defense sector.
- Earnings Estimate Fluctuations: Over the last three months, EPS estimates have seen one upward revision and four downward adjustments, while revenue estimates experienced four upward revisions and one downward, indicating market divergence regarding the company's future performance, which could impact investor confidence.
- Contract Award: Huntington Ingalls secured a $282.9 million contract for Navy frigate support work, which not only strengthens its order backlog but also underscores its significant position among defense contractors.
- Defense Spending Plan: The Pentagon detailed Trump's $1.5 trillion defense plan, focusing on missiles, drones, and ships, positioning Huntington Ingalls to benefit as a key contractor, further solidifying its market position.
See More
Huntington Ingalls Reports Lower Q1 Profit Amid Cost Pressures
- Operating Margin Decline: Huntington Ingalls reported a first-quarter operating margin of 5%, down 80 basis points from 5.9% last year, indicating significant cost pressures from inflation and global trade volatility that could impact future profitability.
- Sales Growth Challenges: While sales in the Newport News shipbuilding segment rose 19.3% to $1.67 billion, the overall cost of product sales increased by 20% to $1.74 billion, highlighting the ongoing challenges in cost management despite strong demand.
- Negative Market Reaction: The company's shares fell nearly 3% in premarket trading, reflecting investor concerns about the future outlook amid uncertainties in global supply chains and U.S. tariff policies, which may lead to decreased market confidence.
- Financial Performance Exceeds Expectations: Despite these challenges, Huntington's total quarterly revenue reached $3.1 billion, surpassing Wall Street estimates of $3.02 billion, demonstrating the company's solid market position amid strong underlying demand for defense products.
See More
HII Reports Strong Q1 2026 Results with $3.1B Revenue
- Significant Revenue Growth: HII's Q1 2026 revenue reached $3.1 billion, a 13.4% increase year-over-year, primarily driven by growth at Newport News and Ingalls Shipbuilding, indicating strong demand and enhanced market position in the defense sector.
- Stable Net Earnings: The company reported net earnings of $149 million with diluted earnings per share of $3.79, unchanged from Q1 2025, demonstrating stability in profitability despite operational cost challenges.
- Robust New Contract Awards: New contract awards totaled $4.0 billion in Q1, bringing the total backlog to $54.0 billion as of March 31, 2026, reflecting the company's competitiveness in the defense contracting market and sustainability of future revenues.
- Operational Efficiency Improvement: HII's operating income for Q1 was $155 million with an operating margin of 5.0%, although down from the previous year, the company continues to focus on driving efficiency and expanding its industrial base network to support future growth strategies.
See More
HII Anticipates Approximately $2.4 Billion in Q2 Shipbuilding Revenue - Presentation
- Q2 Shipbuilding Expectations: The company anticipates a shipbuilding revenue of approximately $2.4 billion for the second quarter.
- Financial Presentation: Details regarding the financial outlook and projections will be shared in an upcoming presentation.
See More
HII ANTICIPATES AROUND 6% REVENUE GROWTH IN THE MEDIUM TERM - PRESENTATION
- Medium-Term Growth Expectation: The forecast indicates a medium-term growth rate of approximately 6%.
- Presentation Context: The information is presented in a structured format, likely aimed at stakeholders or an audience interested in economic projections.
See More
HII Hosts Annual Signing Day Celebrating Shipbuilder Academy Graduates
- Record Number of Graduates: HII's Ingalls Shipbuilding division recognized 49 high school seniors during its Signing Day, who completed the Ingalls Shipbuilder Academy and accepted contingent job offers, showcasing the company's success in developing future shipbuilding talent.
- Diverse Career Paths: Each graduate signed a contingent employment offer during the event, covering various crafts such as welding, painting, pipefitting, joining, and electrical work, indicating the program's role in providing students with diverse career options and contributing to regional economic growth.
- Educational Investment Returns: Since the program's launch in 2016, over 500 students have graduated and transitioned to skilled careers at Ingalls, reflecting the academy's significant impact on enhancing local skilled labor and meeting industry demands, further solidifying HII's leadership in the defense sector.
- Long-term Strategic Planning: The Ingalls Shipbuilder Academy serves as a cornerstone of the company's long-term workforce development strategy, and through partnerships with 13 high schools, HII not only contributes to technical talent cultivation but also enhances its community impact and corporate responsibility in the Gulf Coast region.
See More
