Huntington Ingalls Industries, Inc. · NYSE:HII

Huntington Ingalls Industries — Q1 2021 Earnings Presentation

17 slides from Huntington Ingalls Industries's earnings presentation, May 6, 2021

  1. Slide 1: Q1 2021 Earnings Presentation

    Q1 2021 Earnings Presentation May 6, 2021 Mike Petters President and Chief Executive Officer Chris Kastner Executive Vice President and Chief Operating Officer Tom Stiehle Executive Vice President and Chief Financial Officer

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements 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 ac

  3. Slide 3: HII Q1 2021 Highlights

    Backlog HII Q1 2021 Highlights ($B)  Revenues were ~$2.3 billion in the quarter $50 $48.8 $45.2  Diluted EPS was $3.68 in the quarter; Pension adjusted diluted EPS 1 was $3.56 $40  Total backlog at the end of the quarter was $48.8 billion $30  Ingalls Shipbuilding o Began fabrication of guided-m

  4. Slide 4: HII Q1 2021 Consolidated Results

    HII Q1 2021 Consolidated Results Consolidated Revenue Operating Income ($M) ($M) $2,500 $2,263 $2,278 $250 $215 $2,000 $200 $147 $1,500 $150 $1,000 $100 $500 $50 $0 $0 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Operating Margin 10.0% 9.5%  Revenues improved YoY due primarily to growth at 8.0% Newport News and

  5. Slide 5: Capital Deployment

    Capital Deployment Cash Flow Generation Shareholder Distributions ($M) ($M) $80 $68 Total $60 $43 $140 $126 $40 $120 Total $20 $2 $96 $100 $0 $80 $84 -$20 $50 ($16) $60 -$40 -$60 $40 -$80 ($66) ($59) $46 $20 $42 -$100 $0 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Cash from Operations CAPEX Free Cash Flow 1 Div

  6. Slide 6: Ingalls Shipbuilding Q1 2021 Results

    Ingalls Shipbuilding Q1 2021 Results Revenues Segment Operating Income1 ($M) ($M) $660 $649 $100 $91 $640 $629 $620 $80 $68 $600 $60 $580 $560 $40 $540 $20 $520 $500 $0 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Segment Operating Margin1 16.0% 14.0%  Revenues improved YoY due primarily to growth on 14.0% the

  7. Slide 7: Newport News Shipbuilding Q1 2021 Results

    Newport News Shipbuilding Q1 2021 Results Revenues Segment Operating Income1 ($M) ($M) $1,407 $100 $1,500 $1,341 $95 $95 $93 $1,000 $90 $500 $85 $0 $80 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Segment Operating Margin1 7.2% 7.1%  Revenues improved YoY due to growth in aircraft 7.1% carriers, fleet support s

  8. Slide 8: Technical Solutions Q1 2021 Results

    Technical Solutions Q1 2021 Results Revenues Segment Operating Income1 ($M) ($M) $350 $317 $10 $8 $7 $300 $259 $6 $250 $4 $200 $2 $0 $150 -$2 $100 -$4 -$6 $50 -$8 -$7 $0 -$10 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Segment Operating Margin1 3.0% 2.7%  Revenues declined YoY due primarily to the 2.0% divesti

  9. Slide 9: 2021 Outlook

    2021 Outlook  Prior 2021 guidance ranges for Shipbuilding and Technical Solutions remain appropriate  Shipbuilding revenue1 between $8.2 - $8.4 billion  Technical Solutions revenue of ~$1 billion  Shipbuilding operating margin1 between 7% and 8%  Expect shipbuilding margin for the first half of

  10. Slide 10: Appendix

    Appendix HUNTINGTON INGALLS INDUSTRIES PROPRIETARY

  11. Slide 11: Non-GAAP Measures Definitions

    Non-GAAP Measures Definitions We make reference to “segment operating income,” “segment operating margin,” “ pension adjusted diluted earnings per share,” “shipbuilding revenue,” “shipbuilding operating margin,” “Technical Solutions EBITDA margin” and “free cash flow.” We internally manage our opera

  12. Slide 12: Non-GAAP Measures Definitions Cont’d

    Non-GAAP Measures Definitions Cont’d Segment operating income (loss) is defined as operating income (loss) for the relevant segment(s) before the Operating FAS/CAS Adjustment and non-current state income taxes. Segment operating margin is defined as segment operating income (loss) as a percentage of

  13. Slide 13: 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) 2021 2020 Ingalls revenues 649 629 Newport News revenues 1,407 1,341 Technical Solutions revenues 259 317 Intersegment eliminations (37) (24) Sales and Service Revenues 2,278 2,

  14. Slide 14: Non-GAAP Reconciliations – Shipbuilding Revenues & Operating Margin

    Non-GAAP Reconciliations – Shipbuilding Revenues & Operating Margin Three Months Ended March 31 ($ in millions) 2021 2020 Sales and service revenues 2,278 2,263 Technical Solutions (259) (317) Intersegment eliminations 37 24 Shipbuilding Revenues 2,056 1,970 Operating Income 147 215 Operating FAS/CA

  15. Slide 15: Non-GAAP Reconciliations – Pension Adjusted Diluted Earnings per Share

    Non-GAAP Reconciliations – Pension Adjusted Diluted Earnings per Share Three Months Ended March 31 (in millions, except shares outstanding and per share amounts) 2021 2020 Pension Adjusted Net Earnings Net earnings 148 172 (1) After-tax FAS/CAS adjustment (5) (73) Pension Adjusted Net Earnings 143 9

  16. Slide 16: Non-GAAP Reconciliations – Free Cash Flow

    Non-GAAP Reconciliations – Free Cash Flow Three Months Ended March 31 ($ in millions) 2021 2020 Net cash provided by (used in) operating activities 43 68 Less capital expenditures: Capital expenditure additions (60) (71) Grant proceeds for capital expenditures 1 5 Free cash flow (16) 2 16 HUNTINGTON

  17. Slide 17: HUNTINGTON INGALLS INDUSTRIES HARD STUFF DONE RIGHT

    17 HUNTINGTON INGALLS INDUSTRIES HARD STUFF DONE RIGHT

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