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Huntington Ingalls Industries, Inc. HII

NYSEAerospace and defenseFinancials to Jun 30, 2026 · Updated Oct 9, 2026

On Stock Analysis · affiliate link
HII financials
Moat score
85
ROIC
7.0%
P/E
15.8
EV/EBIT
18.8
FCF yield
-0.8%
Dividend yield
2.1%
Market cap
$10.4B

Moat ranks

Score rankTied #79 of 396
Durabilitydurable
Market structureQuasi-Monopoly
Pricing powermoderate

Balance sheet

6/30/26
$BDec 31Jun 30
Cash0.80.0
Securities0.00.0
Debt2.72.7
Net cash-1.9-2.7
Equity5.15.3
Leverage
Debt / EBITDA
2.65×
Debt / equity
0.51×
Leases (12/31/25)
$281M
Capital
Diluted shares
40M
Book value / share
$134.48
Price / book
2.0×
Net cash / share
−$68.10
Market cap
$10.4B
Enterprise value
$13.1B

Per-share record

Fiscal years and TTM
Scale
$0$100$200$300$400'16'17'18'19'20'21'22'23'24317.66'25333.80TTM
Revenue per shareCash flow per share

Key indicators

Latest: Q2 '26
IndicatorLatestVs year agoLast 8 quarters
Revenue growth10.9%+7.4 pts
Operating margin6.1%+0.9 pts
FCF margin-4.4%-28.0 pts
Capex / revenue3.5%+0.4 pts
Newport News funded backlog$15.8B-4%
Newport News total backlog$32.5B+2%
Ingalls funded backlog$16.9B+7%
Ingalls total backlog$19.4B+1%
Mission Technologies funded backlog$1.9B+1%

Margins and growth from reported quarters; company KPIs as reported in results releases.

About HII

HII builds nuclear carriers and submarines, non-nuclear naval ships, and defense technology. FY2025 external revenue came mainly from Newport News, followed by Ingalls and Mission Technologies.

Revenue mix
Newport News Shipbuilding (Nuclear Shipbuilding) 52.1%Ingalls Shipbuilding (Non-Nuclear Shipbuilding) 24.6%Mission Technologies (Defense Tech & Services) 23.3%
  • Contractual Exclusivity

    Sole builder for U.S.

  • Capex Knowhow Scale

    Capital-intensive nuclear shipyard plus trained workforce and accumulated nuclear expertise raise barriers to entry and replication risk for competitors or public yards.

  • Contractual Exclusivity

    Sole-builder status in amphibious assault ships and one-of-two builder status in surface combatants create limited competition on rebuys and block buys.

  • Design In Qualification

    Being a design agent and qualified builder for complex surface combatants increases switching costs for the customer and raises barriers for new shipyards to win follow-on lots.

Timeline
  1. Oct 2, 2026

    HII promoted Greg Ennis to Mission Technologies CFO, assigning him divisional financial control and program cost oversight. Source: https://www.hii.com/news/hii-promotes-greg-ennis-to-chief-financial-officer-of-mission-technologies (2026-10-02).

  2. Sep 29, 2026

    HII won the $5.100bn USS Harry S. Truman overhaul contract, extending its carrier lifecycle workload. Source: https://www.hii.com/news/hii-is-awarded-contract-to-execute-uss-harry-s-truman-cvn-75-refueling-and-complex-overhaul (2026-09-29).

  3. Sep 29, 2026

    John F. Kennedy reached preliminary Navy acceptance, advancing a carrier delivery milestone while formal delivery remains separate. Source: https://www.hii.com/news/hiis-newport-news-shipbuilding-achieves-preliminary-acceptance-of-john-f-kennedy-cvn-79 (2026-09-29).

  4. Sep 29, 2026

    HII won an order for 10 ROMULUS unmanned surface vessels, moving its autonomous maritime system into Navy production. Source: https://www.hii.com/news/hii-wins-us-navy-contract-for-10-romulus-usvs-accelerating-deployment-of-proven-autonomous-capability (2026-09-29).

  5. Sep 22, 2026

    HII expanded its Pocasset unmanned production campus by 10,000 square feet, adding capacity for underwater and surface autonomous systems. Source: https://www.hii.com/news/hii-expands-unmanned-production-facility-by-25-to-meet-growing-global-maritime-demand (2026-09-22).

Ownership

To 10/9/26
CEO
Christopher D. Kastner
Since 2022 · 4 yrs
Professional CEOSingle share class
Insider trades142
Planned sales10

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Financial record

Fiscal year2016201720182019202020212022202320242025TTMTrendChange 2016–25
Per share ($)
Revenue149.75162.47186.67214.95230.57236.33266.23287.07292.77317.66333.80+8.7%/yr
Cash flow17.4217.7720.8721.6426.9218.8619.1024.319.9730.438.78+6.4%/yr
Earnings12.1410.4619.0913.2617.1413.5014.4417.0713.9615.3916.73+2.7%/yr
Free cash flow11.389.4310.308.8418.2310.6512.0216.990.6620.20-2.15+6.6%/yr
Capex6.048.3410.5712.808.698.217.087.329.3110.2310.94+6.0%/yr
Dividends2.082.513.013.604.244.624.795.015.235.425.47+11.3%/yr
Book value35.0238.3834.6138.3646.8269.6887.01102.58118.43129.08134.48+15.6%/yr
Diluted shares (M)4746444141404040393940-2.0%/yr
Totals ($B)
Revenue7.17.48.28.99.49.510.711.511.512.513.2+6.5%/yr
Operating income0.90.91.00.70.80.50.60.80.50.70.7-3.1%/yr
Net income0.60.50.80.50.70.50.60.70.60.60.7+0.6%/yr
Free cash flow0.50.40.50.40.70.40.50.70.00.8-0.1+4.4%/yr
Buybacks0.20.30.70.30.10.10.10.10.20.00.0–
Dividends0.10.10.10.10.20.20.20.20.20.20.2+9.0%/yr
Net cash-0.6-0.6-1.0-1.2-1.2-2.7-2.4-2.0-2.4-1.9-2.7−$1.4B
Margins & returns (%)
Gross margin23.021.921.917.217.814.413.514.412.612.712.4-10.3 pts
Operating margin12.411.811.68.38.55.45.36.84.65.35.3-7.1 pts
Net margin8.16.410.26.27.45.75.45.94.84.85.0-3.3 pts
FCF margin7.65.85.54.17.94.54.55.90.26.4-0.6-1.2 pts
ROIC31.630.129.621.020.77.57.610.26.17.57.0-24.1 pts
Return on equity34.727.255.134.636.619.416.616.611.811.912.4-22.7 pts
R&D % of revenue0.30.20.30.30.30.40.40.30.20.2–-0.1 pts
Stock pay % of revenue0.50.50.40.30.20.30.30.30.20.40.4-0.1 pts
Capex % of revenue4.05.15.76.03.83.52.72.53.23.23.3-0.8 pts

Change uses 2016 and 2025 only: compound annual growth for amounts, points for margins and returns, and the change in amount for net cash. A dash means no 2016 base. Trend shows the fiscal years.

TTM = four quarters to Jun 30, 2026. Per-share values use diluted weighted shares.ROIC = operating income × (1 − 20.3% tax rate, the company's own over three fiscal years excluding one-offs) ÷ (equity + debt − cash and current securities). Returns show a dash when their base is negative or under 10% of revenue. Free cash flow = operating cash flow − capex. Debt is all borrowings; net cash counts long-term securities and excludes leases.

Moat

Moat scorecard

Moat score85
Strength
Confidence
Structure
Quasi-Monopoly
Durability
durable
Trajectory
stable
Pricing power
moderate
Segments
  • Newport News Shipbuilding (Nuclear Shipbuilding)52.1%
    2 claims
  • Ingalls Shipbuilding (Non-Nuclear Shipbuilding)24.6%
    2 claims
  • Mission Technologies (Defense Tech & Services)23.3%
    1 claim

Moat claims

Applies to
Newport News Shipbuilding (Nuclear Shipbuilding)
Confidence
Durability
durable
Trajectory
stableas of Oct 9, 2026
Why it holds

Sole builder for U.S. Navy nuclear aircraft carriers and exclusive prime contractor for carrier refueling/complex overhaul (RCOH), creating an effectively captive market for mid-life CVN overhauls and future inactivation work.

Why stable

The September $5.100bn Truman overhaul award confirms the sole-provider position; the August plan for a fifth public yard is a future challenge rather than a lost contract.

Indicators
  • Newport News funded backlog$15.8B-4%
  • Newport News total backlog$32.5B+2%
  • Company funded backlog$34.6B+1%
Risks
  • U.S. Government shipyards could be upgraded to perform CVN refueling/RCOH
  • Defense budget reprioritization reduces CVN procurement or overhaul tempo
  • The August 2026 CVN-81 redesign plan can add cost and delay without changing the current sole-builder position
  • Execution risk (schedule slips, rework, cost growth) damages award prospects

Profile change log

  1. Oct 9, 2026 · business change

    HII promoted Greg Ennis to Mission Technologies CFO, assigning him divisional financial control and program cost oversight. Source: https://www.hii.com/news/hii-promotes-greg-ennis-to-chief-financial-officer-of-mission-technologies (2026-10-02).

  2. Oct 9, 2026 · business change

    HII won an order for 10 ROMULUS unmanned surface vessels, moving its autonomous maritime system into Navy production. Source: https://www.hii.com/news/hii-wins-us-navy-contract-for-10-romulus-usvs-accelerating-deployment-of-proven-autonomous-capability (2026-09-29).

  3. Oct 9, 2026 · business change

    John F. Kennedy reached preliminary Navy acceptance, advancing a carrier delivery milestone while formal delivery remains separate. Source: https://www.hii.com/news/hiis-newport-news-shipbuilding-achieves-preliminary-acceptance-of-john-f-kennedy-cvn-79 (2026-09-29).

  4. Oct 9, 2026 · business change

    HII won the $5.100bn USS Harry S. Truman overhaul contract, extending its carrier lifecycle workload. Source: https://www.hii.com/news/hii-is-awarded-contract-to-execute-uss-harry-s-truman-cvn-75-refueling-and-complex-overhaul (2026-09-29).

  5. Oct 9, 2026 · business change

    HII expanded its Pocasset unmanned production campus by 10,000 square feet, adding capacity for underwater and surface autonomous systems. Source: https://www.hii.com/news/hii-expands-unmanned-production-facility-by-25-to-meet-growing-global-maritime-demand (2026-09-22).

  6. Oct 9, 2026 · business change

    HII won a $336m undefinitized CVN-82 long-lead material contract, supporting the next carrier programme before a full construction award. Source: https://www.hii.com/news/hii-is-awarded-long-lead-time-materials-contract-for-cvn-82 (2026-09-11).

  7. Oct 9, 2026 · business change

    The President required plans for CVN-81 design changes, more surface-ship competition and a fifth public yard, increasing future execution and procurement risk. Source: https://www.whitehouse.gov/presidential-actions/2026/08/rebuilding-the-united-states-navy-and-americas-shipbuilding-industrial-base/ (2026-08-13).

  8. Oct 9, 2026 · business change

    HII and HD Hyundai launched an Ingalls welding-automation pilot, testing a way to improve production without proven savings yet. Source: https://www.hii.com/news/hii-expands-welding-automation-at-ingalls-shipbuilding-through-partnership-with-hd-hhi (2026-08-04).

  9. Oct 9, 2026 · business change

    HII raised FY2026 shipbuilding revenue guidance to $10.2bn-$10.4bn and lifted the lower margin bound while retaining its cash-flow outlook. Source: https://www.hii.com/news/hii-reports-second-quarter-2026-results (2026-07-30).

  10. Oct 9, 2026 · business change

    The HII/GD nuclear-submarine team won awards for nine Virginia and five Columbia submarines and yard infrastructure, adding a long production runway. Source: https://www.hii.com/news/hii-is-awarded-contracts-for-construction-of-block-vi-virginia-class-and-build-ii-columbia-class-submarines (2026-07-29).

  11. Oct 9, 2026 · business change

    Ingalls won FF(X) lead-yard support work, adding design and pre-construction responsibilities without a guaranteed production contract. Source: https://www.hii.com/news/hiis-ingalls-shipbuilding-is-awarded-frigate-lead-yard-support-contract (2026-04-28).

  12. Oct 9, 2026 · business change

    The Vermont trial court granted insurers summary judgment in HII's COVID-19 business-interruption case. HII appealed; recovery remains uncertain. Source: https://www.sec.gov/Archives/edgar/data/1501585/000150158526000047/hii-20260630.htm (2026-07-30).

  13. Oct 9, 2026 · business change

    HII acquired W International assets for $132m, adding South Carolina shipbuilding fabrication capacity to Newport News. Source: https://www.sec.gov/Archives/edgar/data/1501585/000150158526000006/hii-20251231.htm (2026-02-05).

  14. Oct 9, 2026 · analyst revision

    Verified five existing claims; added trajectories, funded-backlog tests, management, business debate and three market profiles. Completion adjustments and pension effects remain in reported earnings; separate 2023 legal gains and 2017 deferred-tax remeasurement explain distortions.

  15. Oct 9, 2026 · analyst revision

    Changed segment weights from Q2 2026 to FY2025 external revenue and removed operating profit shares because reported segment income excludes company pension and state-tax adjustments. Sources: https://www.sec.gov/Archives/edgar/data/1501585/000150158526000006/hii-20251231.htm; https://www.sec.gov/Archives/edgar/data/1501585/000150158526000047/hii-20260630.htm.

Industry & peers

Peer map

0%10%20%30%40%50%60708090100Moat scoreIndustry medianHIINOC

Hover a point for its values; click a peer to compare. Dashed lines: industry medians.

US nuclear naval shipbuilding and carrier lifecycle work

As of Oct 9, 2026
Quasi monopolyLow cyclicality

US Navy nuclear aircraft-carrier and submarine construction, carrier refueling and complex overhaul, and carrier inactivation. Excludes commercial vessels, non-nuclear naval ships and routine maintenance at public yards.

StocksMoatGross m.Op. m.
HII8512.4%5.3%
Industry median198020.1%10.7%
Sector median887637.0%17.5%
All stocks median3987652.9%19.6%

Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.

Drivers & risks

Demand drivers
  • Deterrence, carrier fleet replacement and the nuclear triad strongly drive long-term orders; the general economic cycle has a much weaker direct effect.
  • Congressional appropriations and Navy force plans strongly affect funded awards and payment timing. Budget requests and unfunded backlog are not available cash.
  • Specialized trades, nuclear-grade components and fabrication capacity strongly determine output. Wage inflation and scarce suppliers can reduce profit under incentive contracts.
  • Carrier service lives create recurring overhaul work for the qualified yard, but Navy design changes can add unpriced work and delay delivery.
  • Interest rates have a moderate effect on financing working capital and pension obligations. Currency movements have a low direct effect because Navy contracts and most production are in US dollars.
Risks
  • The Navy is a powerful sole buyer and may cancel, defer, redefine or negotiate away expected work.
  • The CVN-81 redesign plan can increase integration costs and schedule uncertainty before any final funded contract modification.
  • Public-yard investment and alternate sourcing can weaken future exclusivity; nuclear qualification still takes capital and trained labor.
  • Welding defects, nuclear safety failures and supplier shortages can cause rework, penalties and reputational damage.
  • Reported profit uses estimates of contract completion costs. Adverse catch-up adjustments can reduce earnings even with a large backlog.

Bulls & bears

Key question · as of Oct 9, 2026

Can HII turn funded naval demand into reliable deliveries and sustained cash generation while controlling redesign, labor and supplier costs?

Arguments

3 forFaded: weakening or settled4 against

What to watch

  1. 1Funded backlog by shipbuilding segment
  2. 2Net contract estimate adjustments and ship delivery milestones
  3. 3Operating cash flow and gross capex

Next check: Q3 results on October 29, 2026; review the CVN-81 design plan due within 60 days of August 13 and new procurement plans due within 90 days.

Sources: company filings and dated sources collected for Find My Moat; market cap as of Oct 8, 2026. Not investment advice.

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Moat Score 85/100 by <a href="https://www.findmymoat.com/stocks/XNYS:HII">Find My Moat</a> (as of September 2026)

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