Huntington Ingalls Industries, Inc. · NYSE:HII

Huntington Ingalls Industries — Q1 2024 Earnings Presentation

17 slides from Huntington Ingalls Industries's earnings presentation, May 2, 2024

  1. Slide 1: HII Q1 2024 Earnings

    HII Q1 2024 Earnings Chris Kastner HII President & CEO Tom Stiehle HII Executive Vice President & CFO May 2, 2024

  2. 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 Securities and Exchange Commission ("SEC"), as well as other statements we may make from time to time, other than statements of historical fact, constitute “forward-looking sta

  3. Slide 3: Q1 2024 Financial Highlights

    Q1 2024 Financial Highlights • Record first quarter revenues of $2.8B, up 4.9% YoY – Mission Technologies revenues $750M, up 20.2% • Operating Income of $154M, up 9.2% YoY • Operating margin of 5.5%, up from 5.3% YoY • Net Income of $153M, up 18.6% YoY • Diluted EPS of $3.87, up 19.8% YoY • Quarter-

  4. Slide 4: HII Q1 2024 Operational Highlights

    HII Q1 2024 Operational Highlights Ingalls Shipbuilding Highlights • Completed Builder’s and Acceptance trials for Richard M. McCool Jr. (LPD 29) Newport News Shipbuilding Highlights • Floated off Massachusetts (SSN 798) • Completed acceptance trials for New Jersey (SSN 796) • Awarded advance planni

  5. Slide 5: HII Q1 2024 Segment Results YoY

    HII Q1 2024 Segment Results YoY SEGMENT OPERATING INCOME1 ($M) Ingalls Shipbuilding REVENUE ($M) & MARGIN %1 $800 $80 Revenue $577 $655 $60 $55 + Surface combatants and amphibious assault ships $600 14% $60 9% volume $400 $40 - National security cutter volume 9.5% 9.2% $200 $20 Operating Income + Ch

  6. Slide 6: HII Q1 2024 Capital Deployment

    HII Q1 2024 Capital Deployment CASH FLOW USE ($M) SHAREHOLDER DISTRIBUTIONS ($M) $0 TOTAL $120 ($9) $113 ($50) ($40) $100 ($49) ($72) $62 ($100) $80 TOTAL $58 ($150) $60 $9 $40 ($200) ($202) $49 $51 $20 ($250) $0 ($274) ($300) Q123 Q124 Q123 Q124 Cash from Ops. CAPEX Free Cash Flow 1 Dividends Share

  7. Slide 7: HII Outlook

    HII Outlook1 FY24 Outlook1 Reaffirming FY24 Outlook Shipbuilding Revenue2 $8.8B - $9.1B Shipbuilding Operating Margin2 7.6% - 7.8% Reaffirming 5 year (FY24-FY28) Free Cash Flow2,4 outlook Mission Technologies Revenue $2.7B - $2.75B of $3.6B Mission Technologies Segment Operating Margin2 3.0% - 3.5%

  8. Slide 8: Investment Thesis

    Investment Thesis Largest U.S. military seapower provider with leading all-domain, integrated defense technologies Historic and significant market tailwinds providing highly visible growth Margin expansion opportunity driven by operational execution and delivering on commitments Projected free cash

  9. Slide 9: Appendix

    Appendix

  10. Slide 10: HII Q1 2024 Consolidated Results

    HII Q1 2024 Consolidated Results CONSOLIDATED REVENUE ($M) OPERATING INCOME ($M) & MARGIN % $3,000 $2,805 $180 $2,674 $160 $154 $2,500 $141 $140 $2,000 $120 $100 $1,500 5.5% 6.1% $80 5.3% $60 $1,000 $40 $500 $20 $0 $0 Q123 Q124 Q123 Q124 5.6% • Revenue grew $131M or 4.9% YoY • Operating income incre

  11. Slide 11: Non-GAAP Information

    Non-GAAP Information We make reference to “free cash flow,” “segment operating income,” “segment operating margin,” “shipbuilding revenue,” “shipbuilding operating margin,” “Mission Technologies EBITDA” and “Mission Technologies EBITDA margin.” We internally manage our operations by reference to seg

  12. Slide 12: Non-GAAP Measures Definitions

    Non-GAAP Measures Definitions Segment operating income is defined as operating income 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 as a percentage of sales and service revenues.

  13. Slide 13: Non-GAAP Reconciliations: Segment Operating Income & Margin

    Non-GAAP Reconciliations Segment Operating Income & Segment Operating Margin Three Months Ended March 31 ($ in millions) 2024 2023 Ingalls revenues 655 577 Newport News revenues 1,434 1,506 Mission Technologies revenues 750 624 Intersegment eliminations (34) (33) Sales and Service Revenues 2,805 2,6

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

    Non-GAAP Reconciliations Shipbuilding Revenues & Operating Margin Three Months Ended March 31 ($ in millions) 2024 2023 Sales and service revenues 2,805 2,674 Mission Technologies (750) (624) Intersegment eliminations 34 33 Shipbuilding Revenues 2,089 2,083 Operating Income 154 141 Operating FAS/CAS

  15. Slide 15: Non-GAAP Reconciliations: Free Cash Flow

    Non-GAAP Reconciliations Free Cash Flow Three Months Ended March 31 ($ in millions) 2024 2023 Net cash used in operating activities (202) (9) Less capital expenditures: Capital expenditure additions (75) (43) Grant proceeds for capital expenditures 3 3 Free cash flow (274) (49) 15

  16. Slide 16: Non-GAAP Reconciliations: Mission Technologies EBITDA & Margin

    Non-GAAP Reconciliations Mission Technologies EBITDA & EBITDA Margin Three Months Ended March 31 ($ in millions) 2024 2023 Mission Technologies sales and service revenues 750 624 Mission Technologies segment operating income 28 17 Mission Technologies depreciation expense 3 3 Mission Technologies am

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