Huntington Ingalls Q3 Earnings Beat Estimates, Revenues Rise Y/Y

Huntington Ingalls Industries, Inc.’s HII third-quarter 2025 earnings of $3.68 per share declined 43.8% from $2.56 in the prior-year quarter. The bottom line also beat the Zacks Consensus Estimate of $3.29 by 11.9%.The year-over-year growth can be attributed to higher sales and operating income performance in the third quarter of 2025 compared with the third quarter of 2024.Total RevenuesRevenues for the quarter totaled $3.19 billion, which beat the Zacks Consensus Estimate of $2.94 billion by 8.4%. The top line also improved 16.1% from $2.75 billion in the year-ago quarter, driven by higher sales volume from all three of its major business segments.Huntington Ingalls Industries, Inc. Price, Consensus and EPS Surprise Huntington Ingalls Industries, Inc. price-consensus-eps-surprise-chart | Huntington Ingalls Industries, Inc. QuoteOperational PerformanceHuntington Ingalls reported segmental operating income of $179 million compared with $97 million in the third quarter of 2024. The segmental operating margin expanded 208 basis points from the prior-year figure to 5.6%.The growth in operating income was primarily driven by strong operating performance at all three business segments of the company.HII received orders worth $2 billion in the third quarter of 2025. As a result, its total backlog reached $55.7 billion as of Sept. 30, 2025, compared with $56.9 billion as of June 30, 2025.Segmental PerformanceNewport News Shipbuilding: Revenues in this segment totaled $1.62 billion, up 14.5% year over year, primarily driven by higher volumes in submarines and aircraft carriers.The segment’s operating income of $80 million increased 433.3% year over year, primarily driven by unfavorable cumulative catch-up adjustments in the Virginia-class submarine program and aircraft carriers in 2024.Ingalls Shipbuilding: Revenues totaled $828 million, up 24.7% year over year. The improvement was driven by higher sales volumes from surface combatants.The segment reported operating earnings of $65 million, up 32.7% year over year, primarily driven by higher volumes in surface combatants.Mission Technologies: Revenues in this segment totaled $787 million, up 11% year over year, driven by higher volumes from C5ISR and live, virtual, and constructive training solutions.The segment reported operating earnings of $34 million, up 3% year over year, primarily driven by higher sales volumes.Financial UpdateCash and cash equivalents, as of Sept. 30, 2025, totaled $312 million, significantly down from $831 million recorded as of Dec. 31, 2024.The long-term debt as of June 30, 2025, totaled $2.70 billion, in line with the 2024-end level.The cash generated by operating activities amounted to $546 million compared with $2 million a year ago.HII’s free cash flow of $284 million as of June 30, 2025, was much higher than the free cash outflow of $237 million in the prior-year period.2025 GuidanceThe company now expects its shipbuilding revenues to be in the range of $9.0-$9.1 billion, narrower than its previous guidance of $8.9-$9.1 billion.For Mission Technologies, HII now expects revenues in the range of $3.0-$3.1 billion, narrower than its previous guidance of $2.9-$3.1 billion.The company now projects free cash flow to be in the band of $550-$650 million, up from the prior guidance of $500-$600 million.Zacks RankHuntington Ingalls currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Recent Defense ReleasesTextron Inc. TXT reported third-quarter 2025 adjusted earnings of $1.55 per share, which beat the Zacks Consensus Estimate of $1.47 by 5.4%. The bottom line also rose 10.7% from $1.40 in the year-ago quarter.The company reported total revenues of $3.6 billion, which missed the Zacks Consensus Estimate of $3.71 billion by 2.8%. Moreover, revenues increased 4.9% from the year-ago quarter’s level of $3.43 billion.RTX Corporation’s RTX third-quarter 2025 adjusted earnings per share of $1.70 beat the Zacks Consensus Estimate of $1.42 by 19.7%. The bottom line also improved 17.2% from the year-ago quarter’s level of $1.45. RTX’s third-quarter sales totaled $22.48 billion, which surpassed the Zacks Consensus Estimate of $21.48 billion by 4.6%. The top line also surged a solid 11.9% from $20.09 billion recorded for the third quarter of 2024.Northrop Grumman Corporation NOC reported third-quarter 2025 adjusted earnings of $7.67 per share, which beat the Zacks Consensus Estimate of $6.49 by 18.2%. The bottom line also increased 9.6% from $7 registered in the prior-year quarter.NOC’s total sales of $10.42 billion in the third quarter missed the Zacks Consensus Estimate of $10.72 billion by 2.8%. However, the top line rose 4.3% from $10 billion reported in the year-ago quarter.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Northrop Grumman Corporation (NOC): Free Stock Analysis Report Textron Inc. (TXT): Free Stock Analysis Report Huntington Ingalls Industries, Inc. (HII): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks