Q1 2024 Huntington Ingalls Industries Inc Earnings Call Transcript
Key Points
- Record first quarter revenue of $2.8 billion, a 4.9% increase compared to the same period last year, driven by growth at Mission Technologies and Ingalls.
- Diluted earnings per share increased to $3.87, up from $3.23 in the first quarter of 2023.
- New contract awards during the quarter totaled $3.1 billion, resulting in a backlog of $48.4 billion, of which $27 billion is currently funded.
- Successful shipbuilding milestones including delivery of ships and submarines, and the integration of an Australian company into the Newport News shipbuilding supply chain.
- Strong performance in Mission Technologies with first quarter revenue of $750 million, a 20% increase over the first quarter of 2023, and strategic contract wins worth hundreds of millions.
- Operational challenges due to access to skilled manufacturing labor, impacting program schedules and costs.
- Lower volumes in aircraft carriers and Virginia-class submarine programs at Newport News, leading to a revenue decrease of $72 million or 5% from the same period last year.
- Shipbuilding operating margin in the first quarter was 6.8%, slightly behind the outlook provided for the quarter.
- Negative free cash flow in the quarter of $274 million, compared to negative $49 million in the first quarter of 2023.
- Ongoing labor challenges in the supply chain affecting major equipment deliveries and impacting ship erection schedules.
Ladies and gentlemen, thank you for standing by, and welcome to the First Quarter 2024 HII Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. (Operator Instructions)
I would now like to hand the call over to the Vice President of Investor Relations, Christie Thomas, Mrs. Thomas, please go ahead.
Thank you, operator, and good morning. I'd like to welcome everyone to the HII First Quarter 2024 Earnings Conference Call. Joining me today on the call are Chris Kastner, our President and CEO; and Tom Stiehle, Executive Vice President and CFO.
As a reminder, statements made today that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results to be materially different from
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