HIINYSEShip & Boat Building & RepairingUS GAAP · USD

Huntington Ingalls Industries, Inc

Huntington Ingalls Industries is a U.S. defense shipbuilder and mission systems contractor focused on naval vessels and related technologies. Through Ingalls Shipbuilding, Newport News Shipbuilding, and Mission Technologies, it designs, builds, overhauls, and supports ships, submarines, aircraft carriers, and defense technology systems for the U.S. Government.

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Revenue12.5bn USD
+8.2 %y/y
Operating profit (EBIT)657m USD
+22.8 %y/y
EBIT margin5.3%
+0.6 ppy/y
Net income605m USD
+10.0 %y/y
Free cash flow794m USD
+2,953.8 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

0.02.55.07.510.012.5bn USD2020: 2.8 bn USD2020: EBIT 0.31 bn USD20202021: 9.5 bn USD2021: EBIT 0.51 bn USD20212022: 10.7 bn USD2022: EBIT 0.57 bn USD20222023: 11.5 bn USD2023: EBIT 0.78 bn USD20232024: 11.5 bn USD2024: EBIT 0.54 bn USD20242025: 12.5 bn USD2025: EBIT 0.66 bn USD202512.50.66
RevenueOperating profit (EBIT)
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Business

Share of revenue
Shipbuilding80 %

Design, construction, overhaul, repair, and maintenance of naval ships and submarines.

Mission Technologies20 %

Defense technology and services including C5ISR, cyber, AI/ML, EW, and training.

Products

Reported · share of revenue
65.1%34.9%FY2025100 %
  • Products65.1 %
  • Services34.9 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

HII sells primarily to the U.S. Government, especially the Department of Defense and the U.S. Navy, under long-term defense contracts. Its customers buy mission-critical shipbuilding and technology capabilities that are difficult to source elsewhere, including nuclear aircraft carrier work and nuclear submarine programs. A smaller portion of demand comes through subcontracting, teaming arrangements, and federal civil/intelligence-related markets served by Mission Technologies.

U.S. Navy

Buys nuclear and non-nuclear ships, overhauls, refueling, and sustainment services for fleet readiness.

U.S. Department of Defense

Buys Mission Technologies solutions, modernization, cyber, training, and support for all-domain operations.

U.S. Coast Guard

Buys national security cutters and related shipbuilding work from Ingalls.

U.S. Government subcontracting and teaming partners

Buy specialized shipbuilding and technology work when HII is a subcontractor or team member.

Federal civil and intelligence agencies

Buy C5ISR, surveillance, cyber, and training services from Mission Technologies.

Strategy

HII’s strategy centers on executing large, long-cycle defense programs, expanding backlog, and maintaining its unique industrial capabilities in nuclear and non-nuclear shipbuilding. It is also investing in Mission Technologies to broaden exposure to software, cyber, C5ISR, AI, and training work that complements the shipbuilding franchise and supports all-domain defense demand.

Execute and expand backlog on major shipbuilding programsShort term

Large backlog supports multi-year visibility, but execution quality drives margin and cash conversion.

Preserve unique nuclear shipyard capabilitiesMedium term

These capabilities create barriers to entry and support long-duration strategic contracts.

Scale Mission TechnologiesMedium term

This segment diversifies the portfolio toward higher-tech defense services and software-enabled solutions.

Geography

HII is headquartered in Newport News, Virginia, and its core shipbuilding operations are concentrated in Virginia and Mississippi. The company says substantially all backlog and revenue come from U.S. Government orders, so its business is overwhelmingly U.S.-centric even though it employs people domestically and internationally. Geography matters mainly through the location of large shipyards, secure facilities, and the concentration of defense procurement in the United States.

Risks

HII is highly dependent on U.S. Government spending and procurement decisions, so budget shifts or program delays can materially affect revenue and backlog. Its shipbuilding model also depends on complex supply chains, skilled labor, cybersecurity, and flawless execution on long-duration contracts, where cost growth or schedule slippage can quickly pressure margins and cash flow.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Program execution and cost overrun risk1U.S. Government spending and procurement risk2Cybersecurity and physical security incidents3Supplier and subcontractor disruption4Regulatory and audit risk5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Program execution and cost overrun riskImpact: HighLikelihood: High

    Long-term shipbuilding contracts use cost-to-cost revenue recognition, so estimate changes can move margins materially.

    Exposure: Shipbuilding programs and nuclear work

  2. U.S. Government spending and procurement riskImpact: HighLikelihood: Medium

    Substantially all revenue and backlog come from U.S. Government customers, so budget changes can reduce awards or delay work.

    Exposure: Substantially all revenue

  3. Cybersecurity and physical security incidentsImpact: HighLikelihood: Medium

    Defense work involves sensitive systems and facilities, making cyber intrusions or security events operationally disruptive.

    ExposureIT systemsShipyardsClassified programs
  4. Supplier and subcontractor disruptionImpact: MediumLikelihood: High

    The company relies on approved sources for materials, components, and services, and shortages can cause delays and incremental cost.

    ExposureRaw materialsMajor componentsSub-assemblies
  5. Regulatory and audit riskImpact: MediumLikelihood: Medium

    As a heavily regulated U.S. Government contractor, adverse audit or compliance findings can affect awards and profitability.

    Exposure: Federal contracting compliance

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Accounting

Judgemental items
Over-time contract revenue recognition

Most revenue comes from long-term U.S. Government contracts recognized using cost-to-cost progress, so estimate changes can materially affect earnings timing.

Impact: Revenue and margin volatility from cumulative catch-up adjustments

Award fee estimation

Award fees are variable consideration and are constrained by funding and reversal risk, affecting transaction price estimates.

Impact: Can increase or reduce recognized revenue on defense contracts

Retirement-related benefit plans

Pension and postretirement obligations require significant assumptions and affect operating expense and equity.

Impact: Can move operating income and other comprehensive income

Workers' compensation reserves

Claims estimates depend on injury trends and settlement assumptions in a heavy industrial workforce.

Impact: Can affect SG&A and accrued liabilities

Goodwill and purchased intangible impairment

Acquisitions create goodwill and intangibles that may need write-downs if cash flows weaken.

Impact: Potential non-cash charges to earnings

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Last updated: 24/09/2026