• NEWPORT NEWS, Va., Oct. 29, 2026 (GLOBE NEWSWIRE) — HII (NYSE: HII) today reported results for the third quarter of fiscal 2026.

Highlights

  • Record third quarter revenues of $3.5 billion
  • Third quarter net earnings were $217 million or $5.48 diluted earnings per share
  • New contract awards in the third quarter totaled $32.4 billion
  • Company raises the FY26 shipbuilding revenue guidance range to between $10.5 and $10.7 billion1
  • Company reaffirms FY26 shipbuilding operating margin2 guidance range of 6.0 to 6.5 percent1
  • Company reaffirms previously issued FY26 free cash flow2 outlook1

Third Quarter Results
Third quarter 2026 revenues of $3.5 billion were up 10.8% from the third quarter of 2025, driven by growth at Newport News Shipbuilding and Ingalls Shipbuilding.

Operating income in the third quarter of 2026 was $246 million and operating margin was 7.0%, compared to $161 million and 5.0%, respectively, in the third quarter of 2025.

Segment operating income2 in the third quarter of 2026 was $262 million and segment operating margin2 was 7.4%, compared to $179 million and 5.6%, respectively, in the third quarter of 2025.

Net earnings in the third quarter of 2026 were $217 million, compared to $145 million in the third quarter of 2025. Diluted earnings per share in the quarter was $5.48, compared to $3.68 in the third quarter of 2025.

Net cash provided by operating activities in the quarter was $520 million and free cash flow2 was $429 million, compared to net cash provided by operating activities of $118 million and free cash flow2 of $16 million in the third quarter of 2025.

New contract awards in the third quarter of 2026 were $32.4 billion. Year-to-date contract awards totaled $43.1 billion.

Commenting on the Company’s third quarter 2026 results, Chris Kastner, HII’s president and CEO said, “Our third quarter results reflect solid performance across all three segments, and the significant awards we received during the quarter have now secured approximately 90 percent of our expected shipbuilding revenue through 2030. With that visibility, our focus is squarely on shipbuilding execution. At Mission Technologies, we won landmark maritime autonomy awards for the Medium Unmanned Surface Vessel (MUSV) and the Lionfish Small Unmanned Undersea Vehicle (SUUV), demonstrating our continued leadership in unmanned systems and maritime autonomy.”

1The financial outlook, expectations, and other forward-looking statements provided by the company for 2026 and beyond reflect the company’s judgment based on information available at the time of this release. Please see the “Cautionary Statement Regarding Forward-Looking Statements and Projections” section in this release and the “Forward-Looking Statements and Projections” section in our Quarterly Report on Form 10-Q for factors that may impact the company’s ability to meet expectations.

2Non-GAAP measures. See Exhibit B for definitions and reconciliations.

Results of Operations

Three Months Ended Nine Months Ended
September 30 September 30
($ in millions, except per share amounts) 2026 2025 $ Change % Change 2026 2025 $ Change % Change
Sales and service revenues $ 3,537 $ 3,192 $ 345 10.8 % $ 10,054 $ 9,008 $ 1,046 11.6 %
Operating income 246 161 85 52.8 % 611 485 126 26.0 %
Operating margin % 7.0 % 5.0 % 191 bps 6.1 % 5.4 % 69 bps
Segment operating income1 262 179 83 46.4 % 658 522 136 26.1 %
Segment operating margin %1 7.4 % 5.6 % 180 bps 6.5 % 5.8 % 75 bps
Net earnings 217 145 72 49.7 % 574 446 128 28.7 %
Diluted earnings per share $ 5.48 $ 3.68 $ 1.80 48.9 % $ 14.53 $ 11.35 $ 3.18 28.0 %
1Non-GAAP measures that exclude non-segment factors affecting operating income. See Exhibit B for definitions and reconciliations.

Segment Operating Results

Ingalls Shipbuilding

Three Months Ended Nine Months Ended
September 30 September 30
($ in millions) 2026 2025 $ Change % Change 2026 2025 $ Change % Change
Revenues $ 876 $ 828 $ 48 5.8 % $ 2,446 $ 2,189 $ 257 11.7 %
Segment operating income 59 65 (6 ) (9.2) % 166 165 1 0.6 %
Segment operating margin % 6.7 % 7.9 % (112) bps 6.8 % 7.5 % (75) bps

Ingalls Shipbuilding revenues for the third quarter of 2026 were $876 million, an increase of $48 million, or 5.8%, from the same period in 2025, primarily driven by higher volumes in amphibious assault ships.

Ingalls Shipbuilding segment operating income for the third quarter of 2026 was $59 million, a decrease of $6 million from the same period in 2025. Segment operating margin in the third quarter of 2026 was 6.7%, compared to 7.9% in the same period last year. The decrease in operating income was primarily driven by lower performance in surface combatants.

Key Ingalls Shipbuilding milestones for the quarter:

  • Christened guided missile destroyer George M. Neal (DDG 131)
  • Expanded distributed shipbuilding to amphibious ships and erected first grand block built by distributed shipbuilding partners on guided missile destroyer Thad Cochran (DDG 135)
  • Signed performance-based production agreements with Path Robotics and GrayMatter Robotics designed to accelerate the development and deployment of advanced automation across U.S. Navy shipbuilding programs
  • Launched intelligent mechanized automated welding pilot with HD Hyundai Heavy Industries

Newport News Shipbuilding

Three Months Ended Nine Months Ended
September 30 September 30
($ in millions) 2026 2025 $ Change % Change 2026 2025 $ Change % Change
Revenues $ 1,910 $ 1,617 $ 293 18.1 % $ 5,424 $ 4,616 $ 808 17.5 %
Segment operating income 132 80 52 65.0 % 331 247 84 34.0 %
Segment operating margin % 6.9 % 4.9 % 196 bps 6.1 % 5.4 % 75 bps

Newport News Shipbuilding revenues for the third quarter of 2026 were $1.9 billion, an increase of $293 million, or 18.1%, from the same period in 2025. The increase was primarily driven by higher volumes in submarines and aircraft carriers.

Newport News Shipbuilding segment operating income for the third quarter of 2026 was $132 million, an increase of $52 million from the same period in 2025. Segment operating margin in the third quarter of 2026 was 6.9% compared to 4.9% in the same period last year. The increase in operating income was primarily driven by contract adjustments and incentives in the Virginia-class submarine program and higher submarine and aircraft carrier volumes.

Key Newport News Shipbuilding milestones for the quarter:

  • Awarded contracts for the construction of Block VI Virginia-class and Build II Columbia-class submarines
  • Achieved preliminary acceptance of John F. Kennedy (CVN 79)
  • Awarded long-lead time materials contract for the construction of planned aircraft carrier CVN 82

Mission Technologies

Three Months Ended Nine Months Ended
September 30 September 30
($ in millions) 2026 2025 $ Change % Change 2026 2025 $ Change % Change
Revenues $ 792 $ 787 $ 5 0.6 % $ 2,300 $ 2,313 $ (13 ) (0.6) %
Segment operating income 71 34 37 108.8 % 161 110 51 46.4 %
Segment operating margin % 9.0 % 4.3 % 464 bps 7.0 % 4.8 % 224 bps

Mission Technologies revenues for the third quarter of 2026 were $792 million, an increase of $5 million, or 0.6%, from the same period in 2025. The increase was primarily due to higher volumes in Unmanned Systems, partially offset by lower volumes in Global Security.

Mission Technologies segment operating income for the third quarter of 2026 was $71 million, an increase of $37 million from the same period in 2025. Segment operating margin in the third quarter of 2026 was 9.0%, compared to 4.3% in the same period last year. The increase in operating income was primarily due to a successful milestone achievement and higher volumes in Unmanned Systems and higher equity income from nuclear and environmental joint ventures.

Mission Technologies results included approximately $18 million of amortization of purchased intangible assets in the third quarter of 2026, compared to approximately $22 million in the same period last year.

Mission Technologies EBITDA margin1 in the third quarter of 2026 was 11.9%, compared to 7.8% in the third quarter of 2025.

Key Mission Technologies milestones for the quarter:

  • Achieved third quarter 2026 book-to-bill of 2.4x
  • Awarded contract for 10 ROMULUS USVs, accelerating deployment of proven autonomous capability
  • Awarded option year contract for U.S. Navy Lionfish Small Unmanned Undersea Vehicle (SUUV) production
  • Awarded $2.2 billion contract to advance U.S. surveillance and intelligence capabilities for the Western Hemisphere
  • Expanded unmanned production facility by 25% to meet growing global maritime demand

Non-GAAP measures. See Exhibit B for definitions and reconciliations.

HII Financial Outlook1

  • FY26 shipbuilding revenue between $10.5 and $10.7 billion; expect shipbuilding operating margin2 between 6.0% and 6.5%
  • FY26 Mission Technologies revenue between $3.0 and $3.2 billion
  • FY26 Mission Technologies segment operating margin of approximately 6%; and Mission Technologies EBITDA margin2 of approximately 9%
  • FY26 free cash flow2 between $500 and $600 million
  • Cumulative FY26 & FY27 free cash flow2 target of between $1.2 billion and $1.3 billion
Prior FY26
Outlook		 Current FY26
Outlook1
Shipbuilding Revenue $10.2B – $10.4B $10.5B – $10.7B
Shipbuilding Operating Margin2 6.0% – 6.5% 6.0% – 6.5%
Mission Technologies Revenue $3.0B – $3.2B $3.0B – $3.2B
Mission Technologies Segment Operating Margin ~5% ~6%
Mission Technologies EBITDA Margin2 8.4% – 8.6% ~9%
Operating FAS/CAS Adjustment ($44M) ($40M)
Non-current State Income Tax Expense3 ~($20M) ($27M)
Interest Expense ($105M) ($100M)
Non-operating Retirement Benefit $213M $213M
Effective Tax Rate ~17% ~17%
Depreciation & Amortization ~$330M ~$330M
Capital Expenditures 4% – 5% of Sales ~$500M
Free Cash Flow2 $500M – $600M $500M – $600M

The financial outlook, expectations, and other forward-looking statements provided by the company for 2026 and beyond reflect the company’s judgment based on the information available at the time of this release. Please see the “Cautionary Statement Regarding Forward-Looking Statements and Projections” section in this release and the “Forward-Looking Statements and Projections” section in our Quarterly Report on Form 10-Q for factors that may impact the company’s ability to meet expectations.

Non-GAAP measures. See Exhibit B for definitions. In reliance upon Item 10(e)(1)(i)(B) of Regulation S-K, reconciliations of forward–looking GAAP and non–GAAP measures are not provided because of the unreasonable effort associated with providing such reconciliations due to the variability in the occurrence and the amounts of certain components of GAAP and non-GAAP measures. For the same reasons, we are unable to address the significance of the unavailable information, which could be material to future results.

Outlook is based on current tax law. Variability exists based on how and when individual states conform to recent federal tax law changes.