Huntington Ingalls Industries, Inc. · NYSE:HII
Huntington Ingalls Industries — Q4 2024 Earnings Presentation
20 slides from Huntington Ingalls Industries's earnings presentation, Feb 6, 2025
Slide 1: Q4 2024 Earnings Call
Q4 2024 Earnings Call Chris Kastner President and CEO Tom Stiehle EVP and CFO February 6, 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 24 months: Expect over $50B of contract awards, establishing balanced risk equation and margins more consistent with industry norms HII Working through majority of challenged pre-COVID contracts, INVESTMENT THESIS focused on enhancing throughput and reducing cost – Top priority to get
Slide 4: 2025 Operational Initiatives
2025 Operational Initiatives Enhancing Shipbuilding Throughput » Targeting 20% overall throughput improvement over 2024 » Multiple workforce improvement initiatives » Ramp up new South Carolina facility » Increase outsourcing to trusted providers » Utilize contract labor to address critical skill ga
Slide 5: Shipbuilding Milestones
Shipbuilding Milestones1 5 Deliveries Planned for 2025-2026 2025 2026 Ingalls Newport News Ingalls Newport News Shipbuilding Shipbuilding Shipbuilding Shipbuilding » Launch DDG 129 » Deliver CVN 792 » Deliver DDG 128* » Lay Keel CVN 81 » Sea Trials DDG 1000 » Deliver SSN 798 » Launch DDG 131 » Deliv
Slide 6: HII Q4 2024 Revenue
HII Q4 2024 Revenue CONSOLIDATED REVENUE ($M) Three Months Ended December 31 ($M) 2023 2024 % Change Ingalls Shipbuilding 800 736 (8.0)% 6.1% Newport News 9.8% Shipbuilding 1,665 1,588 (4.6)% $3,177 $3,004 3.7% Mission Technologies 745 713 (4.3)% Eliminations (33) (33) - Q423 Q424 Total 3,177 3,004
Slide 7: HII Q4 2024 Segment Operating Income
HII Q4 2024 Segment Operating Income1 SEGMENT OPERATING INCOME ($M) & MARGIN % Three Months Ended December 31 $330 ($M) 2023 2024 % Change Ingalls Shipbuilding 169 46 (72.8)% 10.4% 6.1% Newport News 9.8% Shipbuilding 110 38 (65.5)% $103 Mission 3.7% Technologies 51 19 (62.7)% 3.4% Total 330 103 (68.
Slide 8: HII 2024 Revenue
HII 2024 Revenue CONSOLIDATED REVENUE ($M) Twelve Months Ended December 31 ($M) 2023 2024 % Change Ingalls Shipbuilding 2,752 2,767 0.5% Newport News 6.1% Shipbuilding 6,1339.8% 5,969 (2.7)% $11,454 $11,535 Mission Technologies 2,699 2,937 3.7% 8.8% Eliminations (130) (138) 2023 2024 Total 11,454 11
Slide 9: HII 2024 Segment Operating Income
HII 2024 Segment Operating Income1 SEGMENT OPERATING INCOME Twelve Months Ended December 31 ($M) & MARGIN % ($M) 2023 2024 % Change $842 Ingalls Shipbuilding 362 211 (41.7)% 6.1% 7.4% $573 9.8% Newport News Shipbuilding 379 246 (35.1)% 5.0% 3.7% Mission Technologies 101 116 14.9% Total 842 573 (31.9
Slide 10: HII Q4 & FY 2024 Capital Deployment
HII Q4 & FY 2024 Capital Deployment CASH FLOW GENERATION ($M) SHAREHOLDER DISTRIBUTIONS ($M) $500 $400 TOTAL $391 $393 $368 $400 $350 $277 $300 $300 $200 $162 $250 $100 $40 $200 $0 $150 ($100) $206 ($114) $100 TOTAL ($200) $52 ($300) $50 ($400) $0 ($353) Q4 24 FY24 Q424 FY24 1 Cash from Ops. CAPEX F
Slide 11: HII Outlook
HII Outlook1 FY25 OUTLOOK HII Mid to Long Term5 Revenue Growth 4%+ FY25 Outlook • Shipbuilding mid to long term5 revenue2 growth ~4% Shipbuilding Revenue2 $8.9B - $9.1B • Mission Technologies mid to long term5 revenue growth ~5% Shipbuilding Operating Margin2 5.5% - 6.5% 2025 Expectations Mission Te
Slide 12: Appendix
Appendix Q4 2024 EARNINGS 12
Slide 13: Pension Outlook
Pension Outlook1 2024 (Actual) 2025 2026 2027 2028 2029 ($ in millions) Pension Discount Rate 5.28% 5.98% 5.98% 5.98% 5.98% 5.98% Change from prior est. N/A 51 Bps 70 Bps 70 Bps 70 Bps Expected Long-Term Return on Assets 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% N/A N/A N/A N/A N/A Actual Return on Assets
Slide 14: 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 15: 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 16: Non-GAAP Reconciliations: Segment Operating Income & Margin
Non-GAAP Reconciliations Segment Operating Income & Segment Operating Margin Three Months Ended Year Ended December 31 December 31 ($ in millions) 2024 2023 2024 2023 Ingalls revenues 736 800 2,767 2,752 Newport News revenues 1,588 1,665 5,969 6,133 Mission Technologies revenues 713 745 2,937 2,699
Slide 17: Non-GAAP Reconciliations: Shipbuilding Revenues & Margin
Non-GAAP Reconciliations Shipbuilding Revenues & Margin Three Months Ended Year Ended December 31 December 31 ($ in millions) 2024 2023 2024 2023 Sales and service revenues 3,004 3,177 11,535 11,454 Mission Technologies (713) (745) (2,937) (2,699) Intersegment eliminations 33 33 138 130 Shipbuilding
Slide 18: Non-GAAP Reconciliations: Free Cash Flow
Non-GAAP Reconciliations Free Cash Flow Three Months Year Ended Ended December 31 December 31 ($ in millions) 2024 2023 2024 2023 Net cash provided by operating activities 391 562 393 970 Less capital expenditures: Capital expenditure additions (114) (128) (367) (292) Grant proceeds for capital expe
Slide 19: Non-GAAP Reconciliations: Mission Technologies EBITDA & Margin
Non-GAAP Reconciliations Mission Technologies EBITDA & EBITDA Margin Three Months Ended Year Ended December 31 December 31 ($ in millions) 2024 2023 2024 2023 Mission Technologies sales and service revenues 713 745 2,937 2,699 Mission Technologies segment operating income 19 51 116 101 Mission Techn
Slide 20: Slide 20
Huntington Ingalls Industries — Q4 2024 Earnings Presentation on 6ix