Huntington Ingalls Industries, Inc. · NYSE:HII

Huntington Ingalls Industries — Q1 2015 Earnings Presentation

11 slides from Huntington Ingalls Industries's earnings presentation, May 7, 2015

  1. Slide 1: Q1 2015 Earnings Presentation

    Q1 2015 Earnings Presentation May 7, 2015 Mike Petters President & Chief Executive Officer Barb Niland Corporate Vice President, Business Management & Chief Financial Officer Exhibit 99.2

  2. Slide 2: Safe Harbor

    Safe Harbor 2 Statements in this presentation, other than statements of historical fact, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could cause our actual results

  3. Slide 3: Highlights from the First Quarter 2015

    Highlights from the First Quarter 2015 3  Revenues were ~ $1.6 billion  Diluted EPS was $1.79, compared to $1.81 in Q1 2014  Q1 2015 includes ($0.13) for the Other segment  Adjusted Diluted EPS* was $1.42, compared to $1.53 in Q1 2014  Segment operating margin** was 8.2%, compared to 8.6% in Q1

  4. Slide 4: First Quarter 2015 Consolidated Results

    First Quarter 2015 Consolidated Results 4 * Non-GAAP metric that excludes the FAS/CAS Adjustment. See appendix for reconciliation. ** Non-GAAP metric that excludes the tax effected FAS/CAS Adjustment. See appendix for reconciliation. $1.81 $1.79 $1.53 $1.42 $— $0.50 $1.00 $1.50 $2.00 Q1 2014 Q1 2015

  5. Slide 5: Ingalls Shipbuilding

    Ingalls Shipbuilding 5  Ingalls revenues down 14% YoY due to the deliveries of LHA-6 and NSC-4 as well as lower volumes on LPD-27 and LPD-26  Segment operating income and margin up YoY due to risk retirement on LHA-6, partially offset by lower revenues $547 $469 $350 $400 $450 $500 $550 $600 Q1 20

  6. Slide 6: Newport News Shipbuilding

    Newport News Shipbuilding 6  Newport News revenues up 1% YoY due to higher volumes in the VCS program and aircraft carrier maintenance  Segment operating income and margin down YoY due to lower risk retirement on CVN-78 and lower volumes on the RCOH programs, partially offset by risk retirement on

  7. Slide 7: Appendix

    U n sa ve d Docum e n t / 1 2 /2 9 /1 0 / 1 0 :0 2 Appendix

  8. Slide 8: Reconciliations

    Reconciliations 8 We make reference to “segment operating income,” “segment operating margin,” “adjusted sales and service revenues,” “adjusted segment operating income,” “adjusted segment operating margin,” “adjusted operating income,” “adjusted operating margin,” “pension-adjusted operating income

  9. Slide 9: Reconciliation of Non-GAAP Measures – Segment Operating Income and Segment Operating Margin

    Reconciliation of Non-GAAP Measures – Segment Operating Income and Segment Operating Margin 9 $ in millions 2015 2014 Sales and Service Revenues Ingalls 469$ 547$ Newport News 1,061 1,047 Other 40 — Total Sales and Service Revenues 1,570 1,594 Operating Income Ingalls 45 43 As a percentage of revenu

  10. Slide 10: Reconciliation of Non-GAAP Measures – Adjusted Figures

    10 Reconciliation of Non-GAAP Measures – Adjusted Figures ($ in millions) 2015 2014 $ Change % Change Adjusted Sales and Service Revenues Ingalls revenues 469$ 547$ (78)$ (14.3)% Newport News revenues 1,061 1,047 14 1.3 % Other revenues 40 — 40 — Adjustment for UPI revenues (40) — (40) — Adjusted Ot

  11. Slide 11: Reconciliation of Non-GAAP Measures – Adjusted Figures

    Reconciliation of Non-GAAP Measures – Adjusted Figures 11 (In millions, except per share amounts) 2015 2014 $ Change % Change Revenues 1,570$ 1,594$ (24)$ (1.5)% Total segment operating income 128 137 (9) (6.6)% Total segment operating margin % 8.2 % 8.6 % -44 bps Total operating income 156 159 (3)

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