Q2 2026 Huntington Ingalls Industries Inc Earnings Call Transcript
Key Points
- Huntington Ingalls Industries Inc (HII) reported strong second-quarter results with shipbuilding sales up 16% year-over-year, marking the fourth consecutive quarter of double-digit growth.
- The company raised its 2026 shipbuilding revenue guidance to between $10.2 billion and $10.4 billion and its shipbuilding margin guidance to between 6% and 6.5%.
- Huntington Ingalls Industries Inc (HII) secured a major $76.6 billion submarine contract award (Block VI and Columbia), with approximately $25 billion allocated to Newport News, providing long-term stability and demand signals.
- The company achieved a 12% year-to-date improvement in shipbuilding throughput, with plans in place to meet its full-year goal of 15%.
- Huntington Ingalls Industries Inc (HII) is making significant progress in its unmanned systems business, with the ROMULUS USV advancing to at-sea testing and the Lionfish UUV program securing its next production option.
- The company successfully reached a new collective bargaining agreement at Ingalls, which is already showing positive early impacts on hiring and retention of skilled shipbuilders.
- Mission Technologies revenue decreased 3.9% year-over-year in the second quarter, primarily due to lower volumes in All-Domain Operations and Global Security.
- Huntington Ingalls Industries Inc (HII) experienced lower performance in its aircraft carrier programs, partially offsetting positive contract adjustments and incentives.
- The company's free cash flow in the second quarter came in below forecast due to timing of receipts and disbursements, with significant cash generation expected only in the fourth quarter.
- Ingalls Shipbuilding had a slow start to the year regarding labor and labor growth, tied to the timing of finalizing its collective bargaining agreement in March.
- Huntington Ingalls Industries Inc (HII) noted that the new battleship and frigate programs remain upside opportunities but are not yet included in guidance due to lack of details.
- The company expects shipbuilding revenue to be relatively flat in the second half of the year compared to the first half, with a tough year-over-year comparison in the fourth quarter.
Ladies and gentlemen, thank you for standing by, and welcome to the second-quarter 2026 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 Christie Thomas, Vice President of Investor Relations. Mrs. Thomas, you may begin.
Thank you, operator, and good morning, everyone. Welcome to the HII second-quarter 2026 conference call.
Matters discussed on today's call that constitute forward-looking statements, including our estimates regarding the company's outlook, involve risks and uncertainties and reflect the company's judgment based on information available at the time of this call. These risks and uncertainties may cause our actual results to differ materially. Additional information regarding these factors is contained in today's press release and the company's SEC filings.
We will also refer to certain non-GAAP
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
