Huntington Ingalls Industries, Inc. · NYSE:HII
Huntington Ingalls Industries — Q2 2025 Earnings Presentation
16 slides from Huntington Ingalls Industries's earnings presentation, Jul 31, 2025
Slide 1: Q2 2025 Earnings Call
Q2 2025 Earnings Call Chris Kastner President and CEO Tom Stiehle EVP and CFO July 31, 2025 Recently launched Virginia-class submarine Arkansas (SSN 800)
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 2025 and 2026: Expect over $50B of contract awards, establishing balanced risk equation and margins more consistent with industry norms HII Working through the majority of challenged pre-COVID contracts, INVESTMENT THESIS focused on enhancing throughput and reducing cost – Top pri
Slide 4: 2025 Operational Initiatives Update
2025 Operational Initiatives Update Enhancing Shipbuilding Throughput » Targeting 20% overall throughput improvement over 2024 » Multiple workforce improvement initiatives » Ramp up new South Carolina facility » Increase outsourcing to trusted providers » Utilize contract labor to address critical s
Slide 5: Shipbuilding Milestones
Shipbuilding Milestones1 4 Deliveries Planned for 2025-2026; CVN 79 Delivery Moved to 2027 2025 2026 Ingalls Newport News Ingalls Newport News Shipbuilding Shipbuilding Shipbuilding Shipbuilding ✓ Launch DDG 129 » Deliver SSN 798 » Deliver DDG 128 » Lay Keel CVN 81 » Sea Trials DDG 1000 ✓ Float off
Slide 6: HII Q2 2025 Revenue
HII Q2 2025 Revenue CONSOLIDATED REVENUE ($M) Three Months Ended June 30 ($M) 2024 2025 % Change Ingalls Shipbuilding 712 724 1.7% 6.1% $3,082 Newport News 9.8% Shipbuilding 1,535 1,603 4.4% $2,977 3.7% Mission Technologies 765 791 3.4% Eliminations (35) (36) - Q224 Q225 Total 2,977 3,082 3.5% YoY v
Slide 7: HII Q2 2025 Segment Operating Income
HII Q2 2025 Segment Operating Income1 SEGMENT OPERATING INCOME1 ($M) & MARGIN % Three Months Ended June 30 ($M) 2024 2025 % Change $203 Ingalls $172 Shipbuilding 56 54 (3.6%) 6.8% 6.1% 5.6% Newport News 9.8% Shipbuilding 111 82 (26.1%) Mission 3.7% Technologies 36 36 0.0% Total 203 172 (15.3%) Q224
Slide 8: HII Q2 2025 Capital Deployment
HII Q2 2025 Capital Deployment CASH FLOW GENERATION ($M) SHAREHOLDER DISTRIBUTIONS ($M) $1,000 $140 $823 TOTAL $800 $730 $120 $116 $600 $100 $65 $162 $80 $400 TOTAL $60 $53 $200 $40 $51 $53 $0 $20 ($9) ($200) ($90) ($99) ($93) $0 Q224 Q225 Q224 Q225 Cash provided by (used in) Ops. CAPEX Free Cash Fl
Slide 9: HII Outlook
HII Outlook1 FY25 OUTLOOK1 FY25 Outlook1 Reaffirming 2025 segment revenue and Shipbuilding Revenue $8.9B - $9.1B operating margin guidance Shipbuilding Operating Margin2 5.5% - 6.5% Mission Technologies Revenue $2.9B - $3.1B Mission Technologies Segment Operating Margin 4.0% - 4.5% Increasing 2025 f
Slide 10: Appendix
Appendix Q2 2025 EARNINGS 10
Slide 11: Non-GAAP Information
Non-GAAP Information This earnings presentation contains non-GAAP (accounting principles generally accepted in the United States of America) financial measures as defined by SEC Regulation G and indicated by a footnote in the text of this presentation. Definitions for the non-GAAP measures, and rela
Slide 12: Non-GAAP Reconciliations Segment Operating Income & Segment Operating Margin
Non-GAAP Reconciliations Segment Operating Income & Segment Operating Margin Three Months Ended Six Months Ended June 30 June 30 ($ in millions) 2025 2024 2025 2024 Ingalls revenues 724 712 1,361 1,367 Newport News revenues 1,603 1,535 2,999 2,969 Mission Technologies revenues 791 765 1,526 1,515 In
Slide 13: Non-GAAP Reconciliations Shipbuilding Revenues & Margin
Non-GAAP Reconciliations Shipbuilding Revenues & Margin Three Months Ended Six Months Ended June 30 June 30 ($ in millions) 2025 2024 2025 2024 Sales and service revenues 3,082 2,977 5,816 5,782 Mission Technologies (791) (765) (1,526) (1,515) Intersegment eliminations 36 35 70 69 Shipbuilding Reven
Slide 14: Non-GAAP Reconciliations Free Cash Flow
Non-GAAP Reconciliations Free Cash Flow Three Months Ended Six Months Ended June 30 June 30 ($ in millions) 2025 2024 2025 2024 Net cash provided by (used in) operating activities 823 (9) 428 (211) Less capital expenditures: Capital expenditure additions (96) (90) (163) (165) Grant proceeds for capi
Slide 15: Non-GAAP Reconciliations Mission Technologies EBITDA & EBITDA Margin
Non-GAAP Reconciliations Mission Technologies EBITDA & EBITDA Margin Three Months Ended Six Months Ended June 30 June 30 ($ in millions) 2025 2024 2025 2024 Mission Technologies sales and service revenues 791 765 1,526 1,515 Mission Technologies segment operating income 36 36 76 64 Mission Technolog
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