Huntington Ingalls Industries, Inc. · NYSE:HII
Huntington Ingalls Industries — Q1 2026 Earnings Presentation
15 slides from Huntington Ingalls Industries's earnings presentation, May 5, 2026
Slide 1: Q1 2026 Earnings Call
Q1 2026 Earnings Call Chris Kastner President and CEO Tom Stiehle EVP and CFO Kari Wilkinson EVP and President, Newport News Shipbuilding May 5, 2026
Slide 2: Cautionary Statement Regarding Forward-looking Statements
Cautionary Statement Regarding Forward-looking Statements Statements in this presentation and in our other filings with the SEC, as well as other statements we may make from time to time, other than statements of historical fact, constitute "forward-looking statements" within the meaning of the Priv
Slide 3: HII Investment Thesis
Over the course of 2026 & 2027: Expect significant contract awards that establish balanced risk equation and have margins more consistent with historical norms HII Working through the majority of challenged pre-COVID contracts, INVESTMENT THESIS focused on enhancing throughput and reducing cost – To
Slide 4: 2026 Operational Initiatives Update
2026 Operational Initiatives Update Enhancing Shipbuilding Throughput » Throughput improvement target of 15% YoY » Building on ~14% improvement achieved in 2025 » Multiple workforce improvement initiatives » Continue to expand new Charleston facility » Utilize contract labor to address critical gaps
Slide 5: HII Q1 2026 Revenue
HII Q1 2026 Revenue CONSOLIDATED REVENUE ($M) Three Months Ended March 31 ($M) 2025 2026 % Change $3,099 Ingalls $2,734 Shipbuilding 637 725 13.8% 6.1% Newport News 9.8% Shipbuilding 1,396 1,665 19.3% Mission 3.7% Technologies 735 748 1.8% Eliminations (34) (39) - Q125 Q126 Total 2,734 3,099 13.4% Y
Slide 6: HII Q1 2026 Segment Operating Income
HII Q1 2026 Segment Operating Income1 SEGMENT SEGMENT OPERATING OPERATING INCOME INCOME 1 1 ($M) & Three Months Ended March 31 ($M)MARGIN & MARGIN 1% 1% ($M) 2025 2026 % Change $171 $172 Ingalls Shipbuilding 46 49 6.5% 6.3% 5.6% Newport News 6.1% Shipbuilding 85 9.8% 88 3.5% Mission Technologies 40
Slide 7: HII Q1 2026 Capital Deployment
HII Q1 2026 Capital Deployment FREE CASH FLOW1 ($M) $0 ($100) ($67) ($71) ($200) ($300) ($400) ($395) ($390) ($500) ($462) ($461) Q125 Q126 1 Cash Used In Ops. CAPEX Free Cash Flow • Cash balance of $216 million and liquidity • Q1 2026 dividend totaled $54 million of $1.9 billion at quarter end • Di
Slide 8: HII Outlook
HII Outlook1 FY26 OUTLOOK1 HII Medium Term2 Revenue Growth of ~6% FY26 Outlook1 • Shipbuilding medium term2 revenue growth of ~6% Shipbuilding Revenue $9.7B - $9.9B • Additional upside from recently announced frigate and battleship Shipbuilding Operating Margin3 5.5% - 6.5% • Mission Technologies me
Slide 9: Appendix
Appendix Q1 2026 EARNINGS 9
Slide 10: Non-GAAP Information
Non-GAAP Information This earnings presentation contains non-GAAP (accounting principles generally accepted in the United States of America) financial measures as defined by SEC Regulation G and indicated by a footnote in the text of this presentation. Definitions for the non-GAAP measures, and rela
Slide 11: Non-GAAP Reconciliations: Segment Operating Income & Segment Operating Margin
Non-GAAP Reconciliations Segment Operating Income & Segment Operating Margin Three Months Ended March 31 ($ in millions) 2026 2025 Ingalls revenues 725 637 Newport News revenues 1,665 1,396 Mission Technologies revenues 748 735 Intersegment eliminations (39) (34) Sales and Service Revenues 3,099 2,7
Slide 12: Non-GAAP Reconciliations: Shipbuilding Operating Margin
Non-GAAP Reconciliations Shipbuilding Operating Margin Three Months Ended March 31 ($ in millions) 2026 2025 Sales and service revenues 3,099 2,734 Mission Technologies (748) (735) Intersegment eliminations 39 34 Shipbuilding Revenues 2,390 2,033 Operating Income 155 161 Operating FAS/CAS Adjustment
Slide 13: Non-GAAP Reconciliations: Free Cash Flow
Non-GAAP Reconciliations Free Cash Flow Three Months Ended March 31 ($ in millions) 2026 2025 Net cash used in operating activities (390) (395) Less capital expenditures: Capital expenditure additions (74) (67) Grant proceeds for capital expenditures 3 — Free cash flow (461) (462) Q1 2026 EARNINGS 1
Slide 14: Non-GAAP Reconciliations: Mission Technologies EBITDA & EBITDA Margin
Non-GAAP Reconciliations Mission Technologies EBITDA & EBITDA Margin Three Months Ended March 31 ($ in millions) 2026 2025 Mission Technologies sales and service revenues 748 735 Mission Technologies segment operating income 35 40 Mission Technologies depreciation expense 3 3 Mission Technologies am
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