Huntington Ingalls Q1 revenue beats on higher shipbuilding volumes

HUNTINGTON INGALLS INDUSTRIES

05/05/2026 12:31

Overview

U.S. shipbuilder's fiscal Q1 revenue rose 13% yr/yr, beating analyst expectations

Adjusted operating income for Q1 beat analyst estimates

Company reaffirmed FY26 financial guidance and highlighted progress on shipbuilding initiatives

Outlook

Company reaffirms FY26 financial guidance and medium-term outlook

Company expects FY26 shipbuilding revenue between $9.7 bln and $9.9 bln

Company sees FY26 Mission Technologies revenue between $3.0 bln and $3.2 bln

Result Drivers

SHIPBUILDING VOLUMES - Higher volumes at Newport News Shipbuilding and Ingalls Shipbuilding drove revenue growth, with Newport News benefiting from increased activity in aircraft carriers, submarines, and naval nuclear support services, and Ingalls from surface combatants

MARGIN PRESSURE - Segment operating margins declined across all divisions, with the company citing lower performance in amphibious assault ships and aircraft carrier construction, as well as contract adjustments and incentives in the prior year

MISSION TECHNOLOGIES MIXED - Mission Technologies revenue rose modestly, but segment operating income fell due to lower equity income from nuclear and environmental joint ventures, partially offset by higher performance in Warfare Systems

Company press release: ID:nGNX9KYkSW

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$3.10 bln
$3.02 bln (11 Analysts)
Q1 EPS
$3.79
Q1 Net Income
$149 mln
Q1 Adjusted Operating Income
Beat
$172 mln
$150.06 mln (11 Analysts)
Q1 Operating Margin
5.00%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the aerospace & defense peer group is "buy"

Wall Street's median 12-month price target for Huntington Ingalls Industries Inc is $419.00, about 15.3% above its May 4 closing price of $363.37

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 24 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)