Huntington Ingalls Industries, Inc 10-Q for FY2026 Q1

Huntington Ingalls Industries, Inc. (HII)

10-Q 2026-05-05 For: 2026-03-31

Added on May 05, 2026

About this 10-Q

Huntington Ingalls Industries, Inc filed this 10-Q on May 5, 2026, covering the quarter ended March 31, 2026 (FY2026 Q1).

Headline figures

Quarter ended March 31, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $3.1B; up 13.4% from $2.73B a year earlier
Net income: $149M; unchanged from net income of $149M a year earlier
Diluted EPS: $3.79; unchanged from $3.79 a year earlier

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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.	Stockholders' Equity	6
	5.	Earnings Per Share	7
	6.	Revenue	8
	7.	Segment Information	10
	8.	Income Taxes	12
	9.	Investigations, Claims, and Litigation	12
	10.	Commitments and Contingencies	13
	11.	Employee Pension and Other Postretirement Benefits	15
	12.	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		29
Item 4.	Controls and Procedures		30

	PART II – OTHER INFORMATION

Item 1.	Legal Proceedings		31
Item 1A.	Risk Factors		31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		31
Item 3.	Defaults Upon Senior Securities		31
Item 4.	Mine Safety Disclosures		31
Item 5.	Other Information		32
Item 6.	Exhibits		32

Signatures			33


	Three Months Ended March 31
(in millions, except per share amounts)	2026		2025
Sales and service revenues
Product sales	$	2,004	$	1,713
Service revenues	1,095		1,021
Sales and service revenues	3,099		2,734
Cost of sales and service revenues
Cost of product sales	1,741		1,451
Cost of service revenues	950		889
Income from operating investments, net	5		13

General and administrative expenses	258		246

Operating income	155		161
Other income (expense)
Interest expense	(22)		(28)
Non-operating retirement benefit	53		48
Other, net	2		6
Earnings before income taxes	188		187
Federal and foreign income tax expense	39		38
Net earnings	$	149	$	149

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

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

Dividends declared per share	$	1.38	$	1.35

Net earnings from above	$	149	$	149
Other comprehensive income
Change in unamortized benefit plan costs	2		1

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


($ in millions)	March 31, 2026		December 31, 2025
Assets
Current Assets
Cash and cash equivalents	$	216	$	774
Accounts receivable, net of allowance for expected credit losses of $3 million as of 2026 and $2 million as of 2025	406		339
Contract assets	1,989		1,758
Inventoried costs	230		219
Income taxes receivable	278		284

Prepaid expenses and other current assets	98		77
Total current assets	3,217		3,451
Property, plant, and equipment, net of accumulated depreciation of $2,799 million as of 2026 and $2,754 million as of 2025	3,742		3,726
Operating lease assets	274		267
Goodwill	2,650		2,650
Other intangible assets, net of accumulated amortization of $1,243 million as of 2026 and $1,222 million as of 2025	673		694
Pension plan assets	1,586		1,544

Miscellaneous other assets	391		417
Total assets	$	12,533	$	12,749
Liabilities and Stockholders' Equity
Current Liabilities
Trade accounts payable	$	692	$	556
Accrued employees’ compensation	345		443

Current portion of postretirement plan liabilities	119		119
Current portion of workers’ compensation liabilities	219		217
Contract liabilities	822		1,220


Other current liabilities	505		490
Total current liabilities	2,702		3,045
Long-term debt	2,701		2,700
Pension plan liabilities	155		155
Other postretirement plan liabilities	195		200
Workers’ compensation liabilities	446		442
Long-term operating lease liabilities	230		223
Deferred tax liabilities	615		572
Other long-term liabilities	342		339
Total liabilities	7,386		7,676
Commitments and Contingencies (Note 10)
Stockholders’ Equity
Common stock, $0.01 par value; 150,000,000 shares authorized; 53,962,478 shares issued and 39,377,769 shares outstanding as of 2026, and 53,826,236 shares issued and 39,241,527 shares outstanding as of 2025	1		1
Additional paid-in capital	2,070		2,087
Retained earnings	5,577		5,487
Treasury stock	(2,449)		(2,449)
Accumulated other comprehensive loss	(52)		(53)
Total stockholders’ equity	5,147		5,073
Total liabilities and stockholders’ equity	$	12,533	$	12,749


☒			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, 2026 and 2025 ($ in millions)	Common Stock		Additional Paid-in Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Total Stockholders' Equity
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

Balance as of December 31, 2025	$	1	$	2,087	$	5,487	$	(2,449)	$	(53)	$	5,073
Net earnings	—		—		149		—		—		149
Dividends declared ($1.38 per share)	—		—		(54)		—		—		(54)
Stock-based compensation	—		(17)		(5)		—		—		(22)
Other comprehensive income, net of tax	—		—		—		—		1		1


Balance as of March 31, 2026	$	1	$	2,070	$	5,577	$	(2,449)	$	(52)	$	5,147


($ in millions)	Benefit Plans		Total
Balance as of December 31, 2024	$	(28)	$	(28)

Amounts reclassified from accumulated other comprehensive loss
Amortization of prior service cost(1)	4		4
Amortization of net actuarial loss(1)	(3)		(3)



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

Balance as of December 31, 2025	$	(53)	$	(53)

Amounts reclassified from accumulated other comprehensive loss
Amortization of prior service cost(1)	4		4
Amortization of net actuarial loss(1)	(2)		(2)


Tax expense for items of other comprehensive income	(1)		(1)
Net current period other comprehensive income	1		1
Balance as of March 31, 2026	$	(52)	$	(52)


	Three Months Ended March 31, 2026
($ in millions)	Ingalls		Newport News		Mission Technologies		Intersegment Eliminations		Total
Revenue Type
Product sales	$	614	$	1,364	$	26	$	—	$	2,004
Service revenues	108		301		686		—		1,095
Intersegment	3		—		36		(39)		—
Sales and service revenues	$	725	$	1,665	$	748	$	(39)	$	3,099
Customer Type
Federal	$	722	$	1,665	$	709	$	—	$	3,096
Commercial	—		—		3		—		3

Intersegment	3		—		36		(39)		—
Sales and service revenues	$	725	$	1,665	$	748	$	(39)	$	3,099
Contract Type
Firm fixed-price	$	1	$	—	$	103	$	—	$	104
Fixed-price incentive	613		744		—		—		1,357
Cost-type	108		921		581		—		1,610
Time and materials	—		—		28		—		28
Intersegment	3		—		36		(39)		—
Sales and service revenues	$	725	$	1,665	$	748	$	(39)	$	3,099


	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
($ in millions, except per share amounts)	2026		2025
Effect on operating income(1)	$	1	$	—
Effect on diluted earnings per share (net of tax)	$	0.02	$	—


	Three Months Ended March 31
	Pension Benefits				Other Benefits
($ in millions)	2026		2025		2026		2025
Components of net periodic benefit cost
Service cost	$	21	$	22	$	1	$	1
Interest cost	85		84		4		4
Expected return on plan assets	(144)		(137)		—		—
Amortization of prior service cost (credit)	4		4		—		—
Amortization of net actuarial loss (gain)	1		—		(3)		(3)

Net periodic benefit (income) cost	$	(33)	$	(27)	$	2	$	2


	Stock Awards (in thousands)	Weighted-Average Grant Date Fair Value		Weighted-Average Remaining Contractual Term (in 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

Outstanding at December 31, 2025	663	$	199.43	1.0 year
Granted	116	434.34
Adjusted due to performance	22	434.34
Vested	(235)	214.13
Forfeited	(8)	204.33
Outstanding at March 31, 2026	558	$	242.54	1.4 years


	Three Months Ended March 31
					2026 vs. 2025
($ in millions)	2026		2025		Dollars		Percent
Sales and service revenues	$	3,099	$	2,734	$	365	13	%
Cost of product sales and service revenues	2,691		2,340		351		15	%
Income from operating investments, net	5		13		(8)		(62)	%

General and administrative expenses	258		246		12		5	%

Operating income	155		161		(6)		(4)	%
Other income (expense)
Interest expense	(22)		(28)		6		21	%
Non-operating retirement benefit	53		48		5		10	%
Other, net	2		6		(4)		(67)	%
Federal and foreign income taxes	39		38		1		3	%
Net earnings	$	149	$	149	$	—	—	%


	Three Months Ended March 31
($ in millions)	2026		2025
Gross favorable adjustments	$	66	$	80
Gross unfavorable adjustments	(65)		(80)
Net adjustments	$	1	$	—


	March 31, 2026						December 31, 2025
($ in millions)	Funded		Unfunded		Total Backlog		Funded		Unfunded		Total Backlog
Ingalls	$	15,775	$	2,477	$	18,252	$	14,925	$	2,856	$	17,781
Newport News	14,523		15,949		30,472		15,337		14,588		29,925
Mission Technologies	1,672		3,637		5,309		1,723		3,710		5,433
Total backlog	$	31,970	$	22,063	$	54,033	$	31,985	$	21,154	$	53,139


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 Jack H. Lucas (DDG 125) and USS Ted Stevens (DDG 128) in 2023 and 2025, respectively. We have contracts to construct the following Arleigh Burke class (DDG 51) destroyers: 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), Richard J. Danzig (DDG 143), Intrepid (DDG 145), and Robert Kerrey (DDG 146).

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. As a subcontractor to Electric Boat, we leverage our Virginia class (SSN 774) experience to perform design work and build modules for the entire Columbia class (SSBN 826) submarine program. 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.

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 initially 11 ships for this program, of which the first ten ships have been delivered. In 2025, we reached agreement with the U.S. Coast Guard to terminate production and delivery of the 11th and final ship.

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, such as those at the Kenneth A. Kesselring Site, a research and development facility in New York that supports the U.S. Navy, which were completed in 2024.

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 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				2026 vs. 2025				Three Months Ended March 31				2026 vs. 2025
Segment Information	2026		2025		Dollars		Percent		2026		2025		Dollars		Percent
Ingalls
Product	$	614	$	526	$	88	17	%	$	531	$	452	$	79	17	%
Service	108		107		1		1	%	96		90		6		7	%
Intersegment	3		4		(1)		(25)	%	3		4		(1)		(25)	%
Total Ingalls	725		637		88		14	%	630		546		84		15	%
Newport News
Product	1,364		1,160		204		18	%	1,179		971		208		21	%
Service	301		236		65		28	%	255		193		62		32	%

Total Newport News	1,665		1,396		269		19	%	1,434		1,164		270		23	%
Mission Technologies
Product	26		27		(1)		(4)	%	24		20		4		20	%
Service	686		678		8		1	%	597		604		(7)		(1)	%
Intersegment	36		30		6		20	%	36		30		6		20	%
Total Mission Technologies	748		735		13		2	%	657		654		3		—	%
Segment Totals
Product	$	2,004	$	1,713	$	291	17	%	$	1,734	$	1,443	$	291	20	%
Service	1,095		1,021		74		7	%	948		887		61		7	%
Total Segment(1)	$	3,099	$	2,734	$	365	13	%	$	2,682	$	2,330	$	352	15	%


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, 2026 to January 31, 2026	—	$	—	—	$	1,352.3
February 1, 2026 to February 28, 2026	—	—		—	1,352.3
March 1, 2026 to March 31, 2026	—	—		—	1,352.3
Total	—	$	—	—	$	1,352.3


3.1						Restated Certificate of Incorporation of Huntington Ingalls Industries, Inc., dated April 30, 2025 (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on May 5, 2025, File No. 001-34910).

3.2						Restated Bylaws of Huntington Ingalls Industries, Inc., dated April 30, 2025 (incorporated by reference to Exhibit 3.2 to the Company's Current Report on Form 8-K filed on May 5, 2025, File No. 001-34910).

10.1*						Terms and Conditions Applicable to Restricted Performance Stock Rights Granted Under the 2022 Long-Term Incentive Stock Plan, as amended February 2026.

10.2*						Terms and Conditions Applicable to Ratable Vesting Restricted Stock Rights Granted Under the 2022 Long-Term Incentive Stock Plan, as amended February 2026.

10.3*						Terms and Conditions Applicable to Cliff Vesting Restricted Stock Rights Granted Under the 2022 Long-Term Incentive Stock Plan, as amended February 2026.

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 5, 2026	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