Huntington Ingalls Industries, Inc 10-Q for FY2025 Q1

Huntington Ingalls Industries, Inc. (HII)

10-Q 2025-05-01 For: 2025-03-31

Added on April 08, 2026

About this 10-Q

Huntington Ingalls Industries, Inc filed this 10-Q on May 1, 2025, covering the quarter ended March 31, 2025 (FY2025 Q1).

Headline figures

Quarter ended March 31, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $2.73B; down 2.5% from $2.81B a year earlier
Net income: $149M; down 2.6% from net income of $153M a year earlier
Diluted EPS: $3.79; down 2.1% from $3.87 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


Delaware						90-0607005
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	HII	New York Stock Exchange



	PART I – FINANCIAL INFORMATION		Page

Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Statements of Operations and Comprehensive Income		1
	Condensed Consolidated Statements of Financial Position		2
	Condensed Consolidated Statements of Cash Flows		3
	Condensed Consolidated Statements of Changes in Equity		4
	Notes to Condensed Consolidated Financial Statements		5
	1.	Description of Business	5
	2.	Basis of Presentation	5
	3.	Accounting Standards Updates	6
	4.	Acquisitions	6
	5.	Stockholders' Equity	6
	6.	Earnings Per Share	7
	7.	Revenue	8
	8.	Segment Information	10
	9.	Income Taxes	12
	10.	Investigations, Claims, and Litigation	12
	11.	Commitments and Contingencies	13
	12.	Employee Pension and Other Postretirement Benefits	14
	13.	Stock Compensation Plans	15
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		16
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		30
Item 4.	Controls and Procedures		30

	PART II – OTHER INFORMATION

Item 1.	Legal Proceedings		32
Item 1A.	Risk Factors		32
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		32
Item 3.	Defaults Upon Senior Securities		32
Item 4.	Mine Safety Disclosures		32
Item 5.	Other Information		33
Item 6.	Exhibits		33

Signatures			34


	Three Months Ended March 31
(in millions, except per share amounts)	2025		2024
Sales and service revenues
Product sales	$	1,713	$	1,787
Service revenues	1,021		1,018
Sales and service revenues	2,734		2,805
Cost of sales and service revenues
Cost of product sales	1,451		1,537
Cost of service revenues	889		893
Income from operating investments, net	13		12
Other income and gains (losses), net	—		(1)
General and administrative expenses	246		232

Operating income	161		154
Other income (expense)
Interest expense	(28)		(21)
Non-operating retirement benefit	48		44
Other, net	6		7
Earnings before income taxes	187		184
Federal and foreign income tax expense	38		31
Net earnings	$	149	$	153

Basic earnings per share	$	3.79	$	3.87
Weighted-average common shares outstanding	39.3		39.5

Diluted earnings per share	$	3.79	$	3.87
Weighted-average diluted shares outstanding	39.3		39.5

Dividends declared per share	$	1.35	$	1.30

Net earnings from above	$	149	$	153
Other comprehensive income
Change in unamortized benefit plan costs	1		5

Tax expense for items of other comprehensive income	—		(2)
Other comprehensive income, net of tax	1		3
Comprehensive income	$	150	$	156


($ in millions)	March 31, 2025		December 31, 2024
Assets
Current Assets
Cash and cash equivalents	$	167	$	831
Accounts receivable, net of allowance for expected credit losses of $2 million as of 2025 and 2024	387		212
Contract assets	2,017		1,683
Inventoried costs	215		208
Income taxes receivable	151		204

Prepaid expenses and other current assets	105		90
Total current assets	3,042		3,228
Property, plant, and equipment, net of accumulated depreciation of $2,612 million as of 2025 and $2,583 million as of 2024	3,540		3,450
Operating lease assets	241		239
Goodwill	2,651		2,618
Other intangible assets, net of accumulated amortization of $1,143 million as of 2025 and $1,118 million as of 2024	757		782
Pension plan assets	1,457		1,422

Miscellaneous other assets	415		402
Total assets	$	12,103	$	12,141
Liabilities and Stockholders' Equity
Current Liabilities
Trade accounts payable	$	602	$	598
Accrued employees’ compensation	327		392
Current portion of long-term debt	503		503
Current portion of postretirement plan liabilities	124		124
Current portion of workers’ compensation liabilities	204		201
Contract liabilities	647		774


Other current liabilities	449		399
Total current liabilities	2,856		2,991
Long-term debt	2,699		2,700
Pension plan liabilities	142		142
Other postretirement plan liabilities	205		209
Workers’ compensation liabilities	450		443
Long-term operating lease liabilities	204		205
Deferred tax liabilities	367		378
Other long-term liabilities	407		407
Total liabilities	7,330		7,475
Commitments and Contingencies (Note 11)
Stockholders’ Equity
Common stock, $0.01 par value; 150,000,000 shares authorized; 53,823,416 shares issued and 39,238,707 shares outstanding as of 2025, and 53,714,128 shares issued and 39,129,419 shares outstanding as of 2024	1		1
Additional paid-in capital	2,057		2,045
Retained earnings	5,191		5,097
Treasury stock	(2,449)		(2,449)
Accumulated other comprehensive loss	(27)		(28)
Total stockholders’ equity	4,773		4,666
Total liabilities and stockholders’ equity	$	12,103	$	12,141


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


Three Months Ended March 31, 2025 and 2024 ($ in millions)	Common Stock		Additional Paid-in Capital		Retained Earnings (Deficit)		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Total Stockholders' Equity
Balance as of December 31, 2023	$	1	$	2,045	$	4,755	$	(2,286)	$	(422)	$	4,093
Net earnings	—		—		153		—		—		153
Dividends declared ($1.30 per share)	—		—		(51)		—		—		(51)
Stock-based compensation	—		(7)		(2)		—		—		(9)
Other comprehensive income, net of tax	—		—		—		—		3		3

Treasury stock activity	—		—		—		(63)		—		(63)
Balance as of March 31, 2024	$	1	$	2,038	$	4,855	$	(2,349)	$	(419)	$	4,126

Balance as of December 31, 2024	$	1	$	2,045	$	5,097	$	(2,449)	$	(28)	$	4,666
Net earnings	—		—		149		—		—		149
Dividends declared ($1.35 per share)	—		—		(53)		—		—		(53)
Stock-based compensation	—		12		(2)		—		—		10
Other comprehensive income, net of tax	—		—		—		—		1		1


Balance as of March 31, 2025	$	1	$	2,057	$	5,191	$	(2,449)	$	(27)	$	4,773


($ in millions)	Benefit Plans		Total
Balance as of December 31, 2023	$	(422)	$	(422)

Amounts reclassified from accumulated other comprehensive loss
Amortization of prior service cost1	3		3
Amortization of net actuarial loss1	2		2


Tax expense for items of other comprehensive income	(2)		(2)
Net current period other comprehensive income	3		3
Balance as of March 31, 2024	$	(419)	$	(419)

Balance as of December 31, 2024	$	(28)	$	(28)

Amounts reclassified from accumulated other comprehensive loss
Amortization of prior service cost1	4		4
Amortization of net actuarial loss1	(3)		(3)



Net current period other comprehensive income	1		1
Balance as of March 31, 2025	$	(27)	$	(27)


	Three Months Ended March 31, 2025
($ in millions)	Ingalls		Newport News		Mission Technologies		Intersegment Eliminations		Total
Revenue Type
Product sales	$	526	$	1,160	$	27	$	—	$	1,713
Service revenues	107		236		678		—		1,021
Intersegment	4		—		30		(34)		—
Sales and service revenues	$	637	$	1,396	$	735	$	(34)	$	2,734
Customer Type
Federal	$	633	$	1,396	$	701	$	—	$	2,730
Commercial	—		—		4		—		4

Intersegment	4		—		30		(34)		—
Sales and service revenues	$	637	$	1,396	$	735	$	(34)	$	2,734
Contract Type
Firm fixed-price	$	—	$	2	$	97	$	—	$	99
Fixed-price incentive	526		766		2		—		1,294
Cost-type	107		627		569		—		1,303
Time and materials	—		1		37		—		38
Intersegment	4		—		30		(34)		—
Sales and service revenues	$	637	$	1,396	$	735	$	(34)	$	2,734


	Three Months Ended March 31, 2024
($ in millions)	Ingalls		Newport News		Mission Technologies		Intersegment Eliminations		Total
Revenue Type
Product sales	$	586	$	1,176	$	25	$	—	$	1,787
Service revenues	67		257		694		—		1,018
Intersegment	2		1		31		(34)		—
Sales and service revenues	$	655	$	1,434	$	750	$	(34)	$	2,805
Customer Type
Federal	$	653	$	1,433	$	717	$	—	$	2,803
Commercial	—		—		2		—		2

Intersegment	2		1		31		(34)		—
Sales and service revenues	$	655	$	1,434	$	750	$	(34)	$	2,805
Contract Type
Firm fixed-price	$	1	$	2	$	82	$	—	$	85
Fixed-price incentive	586		788		2		—		1,376
Cost-type	66		643		593		—		1,302
Time and materials	—		—		42		—		42
Intersegment	2		1		31		(34)		—
Sales and service revenues	$	655	$	1,434	$	750	$	(34)	$	2,805


	Three Months Ended March 31
($ in millions, except per share amounts)	2025		2024
Effect on operating income	$	—	$	2
Effect on diluted earnings per share	$	—	$	0.03


	Three Months Ended March 31
	Pension Benefits				Other Benefits
($ in millions)	2025		2024		2025		2024
Components of net periodic benefit cost
Service cost	$	22	$	27	$	1	$	1
Interest cost	84		80		4		5
Expected return on plan assets	(137)		(134)		—		—
Amortization of prior service cost (credit)	4		4		—		(1)
Amortization of net actuarial loss (gain)	—		5		(3)		(3)

Net periodic benefit (income) cost	$	(27)	$	(18)	$	2	$	2


	Stock Awards (in thousands)	Weighted-Average Grant Date Fair Value		Weighted-Average Remaining Contractual Term (in years)
Outstanding at December 31, 2023	535	$	189.98	1.0 year
Granted	163	288.03
Adjusted due to performance	54	288.03
Vested	(200)	180.62
Forfeited	(7)	209.51
Outstanding at March 31, 2024	545	$	221.58	1.4 years

Outstanding at December 31, 2024	550	$	221.59	1.0 year
Granted	301	169.05
Adjusted due to performance	16	169.05
Vested	(191)	215.19
Forfeited	(4)	288.33
Outstanding at March 31, 2025	672	$	199.42	1.6 years


	Three Months Ended March 31
					2025 vs. 2024
($ in millions)	2025		2024		Dollars		Percent
Sales and service revenues	$	2,734	$	2,805	$	(71)	(3)	%
Cost of product sales and service revenues	2,340		2,430		(90)		(4)	%
Income from operating investments, net	13		12		1		8	%
Other income and gains (losses), net	—		(1)		1		100	%
General and administrative expenses	246		232		14		6	%

Operating income	161		154		7		5	%
Other income (expense)
Interest expense	(28)		(21)		(7)		(33)	%
Non-operating retirement benefit	48		44		4		9	%
Other, net	6		7		(1)		(14)	%
Federal and foreign income taxes	38		31		7		23	%
Net earnings	$	149	$	153	$	(4)	(3)	%


	March 31, 2025						December 31, 2024
($ in millions)	Funded		Unfunded		Total Backlog		Funded		Unfunded		Total Backlog
Ingalls	$	12,993	$	2,407	$	15,400	$	13,519	$	2,333	$	15,852
Newport News	12,827		13,880		26,707		12,079		14,666		26,745
Mission Technologies	1,866		4,075		5,941		1,824		4,292		6,116
Total backlog	$	27,686	$	20,362	$	48,048	$	27,422	$	21,291	$	48,713


Program Name						Program Description

Aircraft carrier RCOH						Perform refueling and complex overhaul ("RCOH") of nuclear-powered aircraft carriers, which is required at the mid-point of their 50-year life cycle. USS John C. Stennis (CVN 74) arrived at Newport News for the start of its RCOH in May 2021, and USS George Washington (CVN 73) was redelivered to the U.S. Navy in May 2023.

America class (LHA 6) amphibious assault ships						Design and build large deck amphibious assault ships that provide forward presence and power projection as an integral part of joint, interagency and multinational maritime expeditionary forces. The America class (LHA 6) ships, together with the Wasp class (LHD 1) ships, are the successors to the decommissioned Tarawa class (LHA 1) ships. The America class (LHA 6) ships optimize aviation operations and support capabilities. In 2023, we were awarded a long-lead-time material contract for Helmand Province (LHA 10), and in 2024, we were awarded a contract modification for the detail design and construction of Helmand Province (LHA 10). We are currently constructing Bougainville (LHA 8) and Fallujah (LHA 9).

Arleigh Burke class (DDG 51) destroyers						Build guided missile destroyers designed for conducting anti-air, anti-submarine, anti-surface, and strike operations. The Aegis-equipped Arleigh Burke class (DDG 51) destroyers are the U.S. Navy's primary surface combatant, and have been constructed in variants, allowing technological advances during construction. We delivered USS Frank E. Petersen Jr. (DDG 121), USS Lenah H. Sutcliffe Higbee (DDG 123), and USS Jack H. Lucas (DDG 125) in 2021, 2022, and 2023, respectively. We have contracts to construct the following Arleigh Burke class (DDG 51) destroyers: Ted Stevens (DDG 128), Jeremiah Denton (DDG 129), George M. Neal (DDG 131), Sam Nunn (DDG 133), Thad Cochran (DDG 135), John F. Lehman (DDG 137), Telesforo Trinidad (DDG 139), Ernest E. Evans (DDG 141), Charles J. French (DDG 142), and Richard J. Danzig (DDG 143).

Columbia class (SSBN 826) submarines						Design and construct modules for Columbia class (SSBN 826) nuclear ballistic missile submarines ("SSBNs") as a subcontractor to Electric Boat. SSBNs are the most secure and survivable of our nation’s nuclear deterrent triad. Columbia class SSBNs will carry approximately 70 percent of the nation’s nuclear arsenal. The Columbia class (SSBN 826) program plan of record is to construct 12 new SSBNs to replace the current aging Ohio class. We have a teaming agreement with Electric Boat to build modules for the entire Columbia class (SSBN 826) submarine program that leverages our Virginia class (SSN 774) experience. We have been awarded contracts from Electric Boat for integrated product and process development, providing long–lead–time material and advance construction, and construction of the first two boats of the Columbia class (SSBN 826) submarine program. Construction of the first Columbia class (SSBN 826) submarine began in 2020. In 2023, we received an award modification for long-lead-time material and advance construction for the next five boats.

USS Gerald R. Ford class (CVN 78) aircraft carriers						Design and construction for the Ford class program, which is the aircraft carrier replacement program for the decommissioned Enterprise (CVN 65) and Nimitz class (CVN 68) aircraft carriers. USS Gerald R. Ford (CVN 78), the first ship of the Ford class, was delivered to the U.S. Navy in the second quarter of 2017. In June 2015, we were awarded a contract for the detail design and construction of John F. Kennedy (CVN 79), following several years of engineering, advance construction, and purchase of long-lead-time components and material. In addition, we have received awards for detail design and construction of Enterprise (CVN 80) and Doris Miller (CVN 81). This category also includes the class' non-recurring engineering. The class is expected to bring improved warfighting capability, quality of life improvements for sailors, and reduced life cycle costs.



Legend class National Security Cutter						Design and build the U.S. Coast Guard's National Security Cutters ("NSCs"), the largest and most technically advanced class of cutter in the U.S. Coast Guard. The NSC is equipped to carry out maritime homeland security, maritime safety, protection of natural resources, maritime mobility, and national defense missions. There were 11 ships planned for this program, of which the first ten ships have been delivered.

Naval nuclear support services						Provide services to and in support of the U.S. Navy, ranging from services supporting the Navy's carrier and submarine fleets to maintenance services at U.S. Navy training facilities. Naval nuclear support services include design, construction, maintenance, and disposal activities for in-service U.S. Navy nuclear ships worldwide through mobile and in-house capabilities. Services include maintenance services on nuclear reactor prototypes.

San Antonio class (LPD 17) amphibious transport dock ships						Design and build amphibious transport dock ships, which are warships that embark, transport, and land elements of a landing force for a variety of expeditionary warfare missions, and also serve as the secondary aviation platform for Amphibious Readiness Groups. The San Antonio class (LPD 17) is the newest addition to the U.S. Navy's 21st century amphibious assault force, and these ships are a key element of the U.S. Navy's seabase transformation. In 2022, we delivered USS Fort Lauderdale (LPD 28), and we were awarded a long-lead-time material contract for Philadelphia (LPD 32). In 2023, we received an award modification for the detail design and construction of Philadelphia (LPD 32). In 2024, we delivered USS Richard M. McCool Jr. (LPD 29), and we were awarded a multi-ship procurement contract for the construction of Travis Manion (LPD 33), LPD 34 (unnamed), and LPD 35 (unnamed). We are currently constructing Harrisburg (LPD 30), Pittsburgh (LPD 31), and Philadelphia (LPD 32).

Virginia class (SSN 774) fast attack submarines						Construct attack submarines as the principal subcontractor to Electric Boat. The Virginia class (SSN 774) is a post-Cold War design tailored to excel in a wide range of warfighting missions, including anti-submarine and surface ship warfare; special operation forces; strike; intelligence, surveillance, and reconnaissance; carrier and expeditionary strike group support; and mine warfare.


	Sales and Service Revenues								Segment Cost of Product Sales and Service Revenues
($ in millions)	Three Months Ended March 31				2025 vs. 2024				Three Months Ended March 31				2025 vs. 2024
Segment Information	2025		2024		Dollars		Percent		2025		2024		Dollars		Percent
Ingalls
Product	$	526	$	586	$	(60)	(10)	%	$	452	$	491	$	(39)	(8)	%
Service	107		67		40		60	%	90		58		32		55	%
Intersegment	4		2		2		100	%	4		2		2		100	%
Total Ingalls	637		655		(18)		(3)	%	546		551		(5)		(1)	%
Newport News
Product	1,160		1,176		(16)		(1)	%	971		1,001		(30)		(3)	%
Service	236		257		(21)		(8)	%	193		212		(19)		(9)	%
Intersegment	—		1		(1)		(100)	%	—		1		(1)		(100)	%
Total Newport News	1,396		1,434		(38)		(3)	%	1,164		1,214		(50)		(4)	%
Mission Technologies
Product	27		25		2		8	%	20		31		(11)		(35)	%
Service	678		694		(16)		(2)	%	604		620		(16)		(3)	%
Intersegment	30		31		(1)		(3)	%	30		31		(1)		(3)	%
Total Mission Technologies	735		750		(15)		(2)	%	654		682		(28)		(4)	%
Segment Totals
Product	$	1,713	$	1,787	$	(74)	(4)	%	$	1,443	$	1,523	$	(80)	(5)	%
Service	1,021		1,018		3		—	%	887		890		(3)		—	%
Total Segment1	$	2,734	$	2,805	$	(71)	(3)	%	$	2,330	$	2,413	$	(83)	(3)	%


Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Program	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (in millions)1,2
January 1, 2025 to January 31, 2025	—	$	—	—	$	1,352.3
February 1, 2025 to February 28, 2025	—	—		—	1,352.3
March 1, 2025 to March 31, 2025	—	—		—	1,352.3
Total	—	$	—	—	$	1,352.3


3.1						Restated Certificate of Incorporation of Huntington Ingalls Industries, Inc., filed March 30, 2011 (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on April 4, 2011).

3.2						Certificate of Amendment to the Restated Certificate of Incorporation of Huntington Ingalls Industries, Inc., dated May 28, 2014 (incorporated by reference to Exhibit 3.2 to the Company's Quarterly Report on Form 10-Q filed on August 7, 2014).

3.3						Certificate of Amendment to the Restated Certificate of Incorporation of Huntington Ingalls Industries, Inc., dated May 21, 2015 (incorporated by reference to Exhibit 3.3 to the Company's Quarterly Report on Form 10-Q filed on August 6, 2015).

3.4						Certificate of Amendment to the Restated Certificate of Incorporation of Huntington Ingalls Industries, Inc., dated May 12, 2021 (incorporated by reference to Annex B to the Proxy Statement filed on March 19, 2021).

3.5						Restated Bylaws of Huntington Ingalls Industries, Inc. (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on November 8, 2022).

31.1						Certification of the Chief Executive Officer Pursuant to Exchange Act Rule 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2						Certification of the Chief Financial Officer Pursuant to Exchange Act Rule 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1						Certificate of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2						Certificate of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101						The following financial information for the Company, formatted in XBRL (Extensible Business Reporting Language): (i) the Condensed Consolidated Statements of Operations and Comprehensive Income, (ii) the Condensed Consolidated Statements of Financial Position, (iii) the Condensed Consolidated Statements of Cash Flows, (iv) the Condensed Consolidated Statements of Changes in Equity, and (v) the Notes to Condensed Consolidated Financial Statements.

104						The cover page from the Company’s Quarterly Report on Form 10-Q, formatted in Inline XBRL and contained in Exhibit 101.


Date:	May 1, 2025	Huntington Ingalls Industries, Inc.
		(Registrant)

		By:	/s/ Nicolas Schuck
			Nicolas Schuck
			Corporate Vice President, Controller and Chief Accounting Officer
			(Duly Authorized Officer and Principal Accounting Officer)


			/s/ Christopher D. Kastner
			Christopher D. Kastner
			President and Chief Executive Officer


			/s/ Thomas E. Stiehle
			Thomas E. Stiehle
			Executive Vice President and Chief Financial Officer