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Huntington Ingalls
(NYSE:HII)
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Rating:65Neutral
Price Target:
$344.00
â–²(19.61% Upside)
Action:Reiterated
Date:07/31/26
The score is driven primarily by solid underlying operating performance and an upbeat earnings call with raised shipbuilding guidance and strong contract/throughput momentum. These positives are tempered by weak and volatile cash-flow conversion (the main fundamental risk) and a mixed technical setup where the stock is strong versus short-term averages but still below longer-term trend levels; valuation appears reasonable but not notably cheap, with only a modest dividend yield.
Positive Factors
Shipbuilding momentum and raised guidance
Higher shipbuilding revenue and raised margin guidance reflect durable operational improvement in core new‑construction programs. Sustained higher throughput and improved margins increase long‑term revenue visibility, contractor cash generation potential, and program-level profitability over multiple years.
Negative Factors
Weak free cash flow conversion
A pronounced drop in free cash flow and low operating‑cash coverage signals working‑capital and timing volatility. Persistent weak cash conversion limits internally available capital for reinvestment, dividends, or buybacks and raises dependence on external financing during downcycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Shipbuilding momentum and raised guidance
Higher shipbuilding revenue and raised margin guidance reflect durable operational improvement in core new‑construction programs. Sustained higher throughput and improved margins increase long‑term revenue visibility, contractor cash generation potential, and program-level profitability over multiple years.
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
$12.91B
Dividend Yield1.68%
Average Volume (3M)457.72K
Price to Earnings (P/E)19.5
Beta (1Y)0.76
Revenue Growth13.97%
EPS Growth25.77%
CountryUS
Employees45,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)16.80
Shares Outstanding39,404,600
10 Day Avg. Volume448,790
30 Day Avg. Volume457,719
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$361.29Price Target Upside25.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)18.45
Revenue Forecast (FY)$13.34B
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:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed clear operational and financial momentum: solid top-line growth (+10.9% consolidated, ~16% shipbuilding), strong EPS improvement (~36%), raised shipbuilding guidance, significant contract awards (including major submarine activity) and tangible throughput and hiring progress. Offsetting items include a modest quarter shortfall in free cash flow and low cash balance, Mission Technologies revenue softness and near-term margin pressure from strategic investments, and some program-level adjustments and early-year labor/timing impacts at Ingalls. On balance the positives — guidance upgrades, contract wins, throughput progress and strong profitability — considerably outweigh the transitory and manageable lowlights.Positive Updates
Consolidated Revenue and EPS Growth
Q2 revenue of $3.4 billion, up 10.9% year-over-year, and net earnings of $208 million with diluted EPS of $5.27 versus $3.86 in prior-year quarter (EPS up ~36%).
Negative Updates
Mission Technologies Quarterly Revenue Decline
Mission Technologies revenue of $760 million decreased 3.9% versus prior-year quarter (partly due to a $45 million non-recurring prior-year item); Q3 operating-margin expected ~4% (below the ~5% full-year target) due to strategic investments in unmanned capability and production capacity.
Read all updates
Q2-2026 Updates
Positive
Negative
Consolidated Revenue and EPS Growth
Q2 revenue of $3.4 billion, up 10.9% year-over-year, and net earnings of $208 million with diluted EPS of $5.27 versus $3.86 in prior-year quarter (EPS up ~36%).
Read all positive updates
Company Guidance
HII raised 2026 shipbuilding revenue guidance to $10.2–$10.4 billion and shipbuilding operating margin to 6.0–6.5%, while reiterating Mission Technologies revenue of $3.0–$3.2 billion with an approximate 5% margin; for Q3 the company expects shipbuilding revenue of about $2.6 billion with a shipbuilding margin similar to Q2’s 6.3%, Mission Technologies revenue roughly $760 million with an operating margin near 4% (including strategic unmanned investments), and free cash flow of roughly $100 million, with full‑year free cash flow reiterated at $500–$600 million driven by expected Q4 contract advances, incentives and favorable tax items; management noted a Q2 revenue base of ~$3.4 billion (shipbuilding $2.7B), Q2 diluted EPS of $5.27, cash of $12 million, liquidity of ~$1.7 billion, a Q3 tax rate assumption of 21% and a contemplated 17% full‑year rate with an R&D credit expected in Q4.Huntington Ingalls Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
70
Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.19B | 12.48B | 11.54B | 11.45B | 10.68B | 9.52B |
| Gross Profit | 1.66B | 1.58B | 1.45B | 1.65B | 1.44B | 1.37B |
| EBITDA | 1.11B | 1.21B | 1.06B | 1.29B | 1.18B | 1.00B |
| Net Income | 661.00M | 605.00M | 550.00M | 681.00M | 579.00M | 544.00M |
Balance Sheet | ||||||
| Total Assets | 12.68B | 12.75B | 12.14B | 11.21B | 10.86B | 10.63B |
| Cash, Cash Equivalents and Short-Term Investments | 12.00M | 774.00M | 831.00M | 430.00M | 467.00M | 627.00M |
| Total Debt | 2.94B | 3.15B | 3.41B | 2.67B | 3.15B | 3.49B |
| Total Liabilities | 7.37B | 7.68B | 7.47B | 7.12B | 7.37B | 7.82B |
| Stockholders Equity | 5.31B | 5.07B | 4.67B | 4.09B | 3.49B | 2.81B |
Cash Flow | ||||||
| Free Cash Flow | 376.00M | 794.00M | 26.00M | 678.00M | 482.00M | 429.00M |
| Operating Cash Flow | 347.00M | 1.20B | 393.00M | 970.00M | 766.00M | 760.00M |
| Investing Cash Flow | -419.00M | -521.00M | -348.00M | -236.00M | -268.00M | -1.95B |
| Financing Cash Flow | -259.00M | -732.00M | 356.00M | -771.00M | -658.00M | 1.31B |
Huntington Ingalls Technical Analysis
Positive
287.59
Price Trends
295.23
Positive
325.22
Positive
347.26
Negative
Market Momentum
10.56
Negative
63.81
Neutral
60.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HII, the sentiment is Positive. The current price of 287.59 is below the 20-day moving average (MA) of 307.88, below the 50-day MA of 295.23, and below the 200-day MA of 347.26, indicating a neutral trend. The MACD of 10.56 indicates Negative momentum. The RSI at 63.81 is Neutral, neither overbought nor oversold. The STOCH value of 60.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $107.08B | 23.80 | 17.43% | 1.60% | 9.13% | 10.37% | |
76 Outperform | $140.48B | 22.34 | 86.24% | 2.34% | 7.20% | 52.79% | |
70 Outperform | $83.23B | 18.58 | 26.58% | 1.73% | 5.90% | 16.00% | |
69 Neutral | $15.31B | 16.79 | 11.93% | 0.08% | 8.80% | 19.82% | |
68 Neutral | $54.34B | 29.30 | 9.41% | 1.63% | 7.29% | 10.75% | |
65 Neutral | $12.91B | 19.51 | 12.89% | 1.91% | 13.97% | 25.77% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
HII
Huntington Ingalls
327.71
64.55
24.53%
GD
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395.78
87.64
28.44%
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LMT
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179.61
41.86%
NOC
Northrop Grumman
585.87
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1.75%
TXT
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10.00
12.66%
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.