Huntington Ingalls Industries, Inc. · NYSE:HII
Huntington Ingalls Industries — Q1 2025 Earnings Presentation
16 slides from Huntington Ingalls Industries's earnings presentation, May 1, 2025
Slide 1: Q1 2025 Earnings Call
Q1 2025 Earnings Call Chris Kastner President and CEO Tom Stiehle EVP and CFO May 1, 2025
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 next ~20 months: Expect over $50B of contract awards, establishing balanced risk equation and margins more consistent with industry norms HII Working through majority of challenged pre-COVID contracts, INVESTMENT THESIS focused on enhancing throughput and reducing cost – Top priority to get
Slide 4: 2025 Operational Initiatives Progressing
2025 Operational Initiatives Progressing Enhancing Shipbuilding Throughput » Targeting 20% overall throughput improvement over 2024 » Multiple workforce improvement initiatives » Ramp up new South Carolina facility » Increase outsourcing to trusted providers » Utilize contract labor to address criti
Slide 5: HII Q1 2025 Revenue
HII Q1 2025 Revenue CONSOLIDATED REVENUE ($M) Three Months Ended March 31 ($M) 2024 2025 % Change Ingalls Shipbuilding 655 637 (2.7%) 6.1% Newport News 9.8% Shipbuilding 1,434 1,396 (2.6%) $2,805 $2,734 3.7% Mission Technologies 750 735 (2.0%) Eliminations (34) (34) - Q124 Q125 Total 2,805 2,734 (2.
Slide 6: HII Q1 2025 Segment Operating Income
HII Q1 2025 Segment Operating Income1 SEGMENT OPERATING INCOME1 ($M) & MARGIN % Three Months Ended March 31 $170 $171 ($M) 2024 2025 % Change Ingalls Shipbuilding 60 46 (23.3%) 6.1% 6.3% 6.1% Newport News 9.8% Shipbuilding 82 85 3.7% Mission 3.7% Technologies 28 40 42.9% Total 170 171 0.6% Q124 Q125
Slide 7: HII Q1 2025 Capital Deployment
HII Q1 2025 Capital Deployment CASH FLOW GENERATION ($M) SHAREHOLDER DISTRIBUTIONS ($M) $0 TOTAL $120 $113 ($50) ($100) ($72) ($67) $100 ($150) $62 $162 $80 ($200) TOTAL ($250) ($202) $53 $60 ($300) ($274) $40 $53 ($350) $51 ($400) $20 ($395) ($450) ($500) ($462) $0 Q124 Q125 Q124 Q125 Cash from Ops
Slide 8: HII Outlook
HII Outlook1 FY25 OUTLOOK UNCHANGED HII Mid to Long Term5 Revenue Growth 4%+ FY25 Outlook • Shipbuilding mid to long term5 revenue2 growth ~4% Shipbuilding Revenue2 $8.9B - $9.1B • Mission Technologies mid to long term5 revenue growth ~5% Shipbuilding Operating Margin2 5.5% - 6.5% Mission Technologi
Slide 9: Appendix
Appendix Q1 2025 EARNINGS 9
Slide 10: Non-GAAP Information
Non-GAAP Information We make reference to “free cash flow,” “segment operating income,” “segment operating margin,” “shipbuilding revenue,” “shipbuilding operating margin,” “Mission Technologies EBITDA” and “Mission Technologies EBITDA margin.” We internally manage our operations by reference to seg
Slide 11: Non-GAAP Measures Definitions
Non-GAAP Measures Definitions Segment operating income is defined as operating income for the relevant segment(s) before the Operating FAS/CAS Adjustment and non-current state income taxes. Segment operating margin is defined as segment operating income as a percentage of sales and service revenues.
Slide 12: Non-GAAP Reconciliations Segment Operating Income & Segment Operating Margin
Non-GAAP Reconciliations Segment Operating Income & Segment Operating Margin Three Months Ended March 31 ($ in millions) 2025 2024 Ingalls revenues 637 655 Newport News revenues 1,396 1,434 Mission Technologies revenues 735 750 Intersegment eliminations (34) (34) Sales and Service Revenues 2,734 2,8
Slide 13: Non-GAAP Reconciliations Shipbuilding Revenues & Margin
Non-GAAP Reconciliations Shipbuilding Revenues & Margin Three Months Ended March 31 ($ in millions) 2025 2024 Sales and service revenues 2,734 2,805 Mission Technologies (735) (750) Intersegment eliminations 34 34 Shipbuilding Revenues 2,033 2,089 Operating Income 161 154 Operating FAS/CAS Adjustmen
Slide 14: Non-GAAP Reconciliations Free Cash Flow
Non-GAAP Reconciliations Free Cash Flow Three Months Ended March 31 ($ in millions) 2025 2024 Net cash used in operating activities (395) (202) Less capital expenditures: Capital expenditure additions (67) (75) Grant proceeds for capital expenditures — 3 Free cash flow (462) (274) Q1 2025 EARNINGS 1
Slide 15: Non-GAAP Reconciliations Mission Technologies EBITDA & EBITDA Margin
Non-GAAP Reconciliations Mission Technologies EBITDA & EBITDA Margin Three Months Ended March 31 (in millions) 2025 2024 Mission Technologies sales and service revenues 735 750 Mission Technologies segment operating income 40 28 Mission Technologies depreciation expense 3 3 Mission Technologies amor
Slide 16: Slide 16
Huntington Ingalls Industries — Q1 2025 Earnings Presentation on 6ix