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Huntington Ingalls
(NYSE:HII)
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Rating:61Neutral
Price Target:
$295.00
â–¼(-25.28% Downside)
Action:Reiterated
Date:05/09/26
The score reflects solid underlying fundamentals (steady revenue growth, improving leverage, and strong absolute cash generation) tempered by weak price momentum (well below major moving averages with negative MACD). Management’s reaffirmed guidance and strong backlog support the outlook, but near-term margin pressure and negative/volatile free cash flow reduce confidence, while valuation is only moderately supportive given a ~25 P/E and ~1.7% yield.
Positive Factors
Backlog & Contract Awards
A roughly $54 billion backlog and $4 billion of Q1 awards provide multi-year revenue visibility tied to U.S. Navy programs. This durable contract backlog supports predictable work cadence, capacity planning, and multi-year cash flow conversion across shipbuilding and services.
Negative Factors
Margin compression
Year-over-year margin erosion (consolidated operating margin down to 5.0%) reflects cost, mix and execution pressures. Sustained margin compression would materially reduce cash flow margins on long-term contracts and limit the upside from growing revenue without structural cost fixes.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog & Contract Awards
A roughly $54 billion backlog and $4 billion of Q1 awards provide multi-year revenue visibility tied to U.S. Navy programs. This durable contract backlog supports predictable work cadence, capacity planning, and multi-year cash flow conversion across shipbuilding and services.
Read all positive factors
Huntington Ingalls Key Performance Indicators (KPIs)
Any
Revenue By Segment
Breaks down sales across different segments, revealing which areas contribute most to growth and where there may be risks or opportunities for expansion.
Breaks down sales across different segments, revealing which areas contribute most to growth and where there may be risks or opportunities for expansion.
Data provided by:
The Fly
The FlyHuntington Ingalls (HII) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.27B
Dividend Yield1.53%
Average Volume (3M)507.15K
Price to Earnings (P/E)18.6
Beta (1Y)0.73
Revenue Growth12.08%
EPS Growth10.89%
CountryUS
Employees44,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)15.39
Shares Outstanding39,404,030
10 Day Avg. Volume398,169
30 Day Avg. Volume507,147
Financial Highlights & Ratios
PEG Ratio2.16
Price to Book (P/B)2.63
Price to Sales (P/S)1.07
P/FCF Ratio16.83
Enterprise Value/Market Cap1.28
Enterprise Value/Revenue1.12
Enterprise Value/Gross Profit9.01
Enterprise Value/Ebitda11.98
Forecast
1Y Price Target
$381.83Price Target Upside-3.29% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)17.3
Revenue Forecast (FY)$13.00B
Huntington Ingalls Business Overview & Revenue Model
Company Description
Huntington Ingalls Industries, Inc. (HII) stands as a prominent American enterprise specializing in the comprehensive lifecycle management of military vessels, encompassing their design, construction, modernization, and maintenance. The company's ...
How the Company Makes Money
HII makes money primarily by contracting with the U.S. government—especially the U.S. Navy—under long-term programs to design, build, overhaul, repair, and sustain ships, and to deliver defense mission technologies and services.
Key revenue strea...
Huntington Ingalls Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed a generally constructive operational and backlog momentum — double-digit YoY revenue growth, significant contract awards, program milestones, and active workforce and capacity initiatives — while acknowledging near-term financial and programmatic headwinds such as margin compression, negative Q1 free cash flow, a temporarily higher tax rate, and schedule/testing risks (notably LHA-8 and carrier activities) and timing uncertainty around key submarine contract awards. Management reaffirmed full-year guidance and outlined actionable operational plans to improve throughput and cash generation.Positive Updates
Consolidated Revenue and EPS Growth
Reported Q1 sales of $3.1 billion (consolidated revenue +13.4% YoY) and diluted EPS of $3.79, consistent with the prior-year period.
Negative Updates
Margin Compression Across Segments
Consolidated operating margin declined to 5.0% in Q1 from 5.9% a year ago. Segment margin compression: Ingalls 6.8% (vs 7.2% prior), Newport News 5.3% (vs 6.1%), Mission Technologies 4.7% (vs 5.4%).
Read all updates
Q1-2026 Updates
Positive
Negative
Consolidated Revenue and EPS Growth
Reported Q1 sales of $3.1 billion (consolidated revenue +13.4% YoY) and diluted EPS of $3.79, consistent with the prior-year period.
Read all positive updates
Company Guidance
HII reaffirmed its 2026 and medium‑term guidance while outlining specific near‑term targets: Q2 shipbuilding revenue ≈ $2.4 billion with shipbuilding operating margin 5.7%–6.0%, Mission Technologies revenue ≈ $750 million with operating margin ≈ 4%, and Q2 free cash flow between -$100 million and +$100 million (company still expects a full‑year effective tax rate of ~17% but will use 21% for Q2); management reiterated a goal of ~15% shipbuilding throughput improvement for full‑year 2026, year‑over‑year outsourcing hours growth of ~30%, and the expectation of Virginia‑ and Columbia‑class contract awards in Q2; for context Q1 results included $3.1 billion sales, $4.0 billion of contract awards, Q1 shipbuilding revenue $2.4 billion (modestly ahead of $2.3 billion guidance), Mission Technologies sales $748 million, consolidated operating income $155 million (5.0% margin) and segment operating income $172 million (5.6% margin), net earnings $149 million and diluted EPS $3.79, cash used in operations $390 million, free cash flow -$461 million, capex $71 million (2.3% of revenues), ending cash $216 million and liquidity ≈ $1.9 billion, and management reaffirmed year‑end free cash flow guidance of $500–$600 million.Huntington Ingalls Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
74
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.85B | 12.48B | 11.54B | 11.45B | 10.68B | 9.52B |
| Gross Profit | 1.60B | 1.58B | 1.45B | 1.65B | 1.44B | 1.37B |
| EBITDA | 1.20B | 1.21B | 1.06B | 1.29B | 1.18B | 1.00B |
| Net Income | 605.00M | 605.00M | 550.00M | 681.00M | 579.00M | 544.00M |
Balance Sheet | ||||||
| Total Assets | 12.53B | 12.75B | 12.14B | 11.21B | 10.86B | 10.63B |
| Cash, Cash Equivalents and Short-Term Investments | 216.00M | 774.00M | 831.00M | 430.00M | 467.00M | 627.00M |
| Total Debt | 2.93B | 3.15B | 3.41B | 2.67B | 3.15B | 3.49B |
| Total Liabilities | 7.39B | 7.68B | 7.47B | 7.12B | 7.37B | 7.82B |
| Stockholders Equity | 5.15B | 5.07B | 4.67B | 4.09B | 3.49B | 2.81B |
Cash Flow | ||||||
| Free Cash Flow | 1.06B | 794.00M | 26.00M | 678.00M | 482.00M | 429.00M |
| Operating Cash Flow | 1.20B | 1.20B | 393.00M | 970.00M | 766.00M | 760.00M |
| Investing Cash Flow | -393.00M | -521.00M | -348.00M | -236.00M | -268.00M | -1.95B |
| Financing Cash Flow | -759.00M | -732.00M | 356.00M | -771.00M | -658.00M | 1.31B |
Huntington Ingalls Technical Analysis
Negative
394.81
Price Trends
306.52
Negative
356.20
Negative
344.80
Negative
Market Momentum
-5.87
Negative
42.90
Neutral
54.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HII, the sentiment is Negative. The current price of 394.81 is above the 20-day moving average (MA) of 287.73, above the 50-day MA of 306.52, and above the 200-day MA of 344.80, indicating a bearish trend. The MACD of -5.87 indicates Negative momentum. The RSI at 42.90 is Neutral, neither overbought nor oversold. The STOCH value of 54.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HII.
Huntington Ingalls Risk Analysis
Huntington Ingalls disclosed 30 risk factors in its most recent earnings report. Huntington Ingalls reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Huntington Ingalls Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $101.43B | 23.25 | 17.41% | 1.73% | 9.35% | 10.49% | |
73 Outperform | $15.81B | 17.38 | 12.13% | 0.09% | 9.48% | 18.21% | |
69 Neutral | $54.17B | 31.41 | 8.87% | 1.61% | 5.79% | 9.31% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $76.65B | 16.84 | 28.05% | 1.55% | 4.95% | 26.05% | |
61 Neutral | $11.27B | 18.59 | 12.05% | 1.53% | 12.08% | 10.89% | |
59 Neutral | $120.64B | 25.22 | 74.53% | 2.77% | 4.59% | -10.76% |
* Industrials Sector Average
HII
Huntington Ingalls
286.09
31.88
12.54%
GD
General Dynamics
375.06
75.50
25.20%
LHX
L3Harris Technologies
290.77
32.64
12.65%
LMT
Lockheed Martin
523.22
62.09
13.46%
NOC
Northrop Grumman
539.63
26.56
5.18%
TXT
Textron
90.91
5.60
6.56%
Huntington Ingalls Corporate Events
Executive/Board ChangesShareholder Meetings
Huntington Ingalls Shareholders Approve Directors and Executive Pay
Positive
May 1, 2026
At its April 29, 2026 annual meeting of stockholders, Huntington Ingalls Industries shareholders elected 11 directors to terms ending in 2027, with all nominees receiving strong majority support despite one director drawing a relatively higher lev...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.