Huntington Ingalls Industries (NYSE:HII) Posts Quarterly Earnings Results, Beats Expectations By $1.48 EPS

Huntington Ingalls Industries (NYSE:HII) released its quarterly earnings results on Thursday. The aerospace company reported $5.27 earnings per share for the quarter, topping the consensus estimate of $3.79 by $1.48, FiscalAI reports. Huntington Ingalls Industries had a return on equity of 12.05% and a net margin of 4.71%.The company had revenue of $3.42 billion for the quarter, compared to analysts’ expectations of $3.15 billion. During the same period in the previous year, the business posted $3.86 earnings per share. The business’s quarterly revenue was up 10.9% compared to the same quarter last year.

Here are the key takeaways from Huntington Ingalls Industries’ conference call:

• Second-quarter results strengthened, with revenue up 10.9% year over year to $3.4 billion, diluted EPS rising to $5.27 from $3.86, and operating margin improving to 6.1% from 5.3%.
• HII raised 2026 shipbuilding revenue guidance to $10.2 billion–$10.4 billion and increased the operating-margin range to 6.0%–6.5%, supported by four consecutive quarters of double-digit shipbuilding growth and improving throughput.
• The company highlighted strong demand and a $6.7 billion contract-award quarter, including finalized Virginia- and Columbia-class submarine contracts, additional frigate work, and continued bipartisan support for submarine-industrial-base funding.
• Workforce and capacity initiatives are progressing, with more than 3,500 shipbuilders hired year to date and distributed shipbuilding expected to increase 30% in 2026, but Ingalls had a slower start and further hiring, retention, and supplier execution remain important to meeting delivery targets.
• Mission Technologies revenue declined 3.9% year over year to $760 million, while third-quarter margin is expected to fall to approximately 4% because of strategic investments in unmanned capabilities; free cash flow also remains heavily weighted toward the fourth quarter, with $500 million–$600 million expected for the full year.

Huntington Ingalls Industries Trading Up 14.0%

Shares of NYSE:HII traded up $39.30 during mid-day trading on Thursday, hitting $319.70. The company had a trading volume of 1,374,383 shares, compared to its average volume of 442,646. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.19 and a quick ratio of 1.11. The company has a market capitalization of $12.60 billion, a PE ratio of 20.80, a price-to-earnings-growth ratio of 1.20 and a beta of 0.25. The firm has a fifty day moving average price of $290.79 and a 200 day moving average price of $359.35. Huntington Ingalls Industries has a one year low of $259.00 and a one year high of $460.00.

Huntington Ingalls Industries Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 11th. Investors of record on Friday, August 28th will be paid a dividend of $1.38 per share. The ex-dividend date of this dividend is Friday, August 28th. This represents a $5.52 annualized dividend and a yield of 1.7%. Huntington Ingalls Industries’s dividend payout ratio (DPR) is currently 35.91%.

Insiders Place Their Bets

In other news, VP Edmond E. Jr. Hughes sold 3,500 shares of the company’s stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $319.58, for a total transaction of $1,118,530.00. Following the transaction, the vice president owned 8,391 shares in the company, valued at approximately $2,681,595.78. This represents a 29.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.80% of the company’s stock.

Institutional Investors Weigh In On Huntington Ingalls Industries

A number of hedge funds have recently added to or reduced their stakes in HII. CYBER HORNET ETFs LLC acquired a new position in shares of Huntington Ingalls Industries during the second quarter worth approximately $25,000. Rakuten Securities Inc. increased its stake in Huntington Ingalls Industries by 140.0% during the 2nd quarter. Rakuten Securities Inc. now owns 108 shares of the aerospace company’s stock valued at $26,000 after purchasing an additional 63 shares in the last quarter. Quarry LP increased its stake in Huntington Ingalls Industries by 364.3% during the 4th quarter. Quarry LP now owns 130 shares of the aerospace company’s stock valued at $44,000 after purchasing an additional 102 shares in the last quarter. Smartleaf Asset Management LLC raised its holdings in Huntington Ingalls Industries by 363.3% during the second quarter. Smartleaf Asset Management LLC now owns 139 shares of the aerospace company’s stock worth $33,000 after buying an additional 109 shares during the last quarter. Finally, BOKF NA raised its holdings in Huntington Ingalls Industries by 91.8% during the third quarter. BOKF NA now owns 186 shares of the aerospace company’s stock worth $54,000 after buying an additional 89 shares during the last quarter. Institutional investors and hedge funds own 90.46% of the company’s stock.

Analysts Set New Price Targets

HII has been the topic of a number of research reports. Citigroup reduced their target price on shares of Huntington Ingalls Industries from $405.00 to $349.00 and set a “buy” rating on the stock in a report on Wednesday, July 1st. TD Cowen reduced their price target on Huntington Ingalls Industries from $420.00 to $360.00 and set a “buy” rating on the stock in a research report on Monday, July 13th. Wells Fargo & Company started coverage on Huntington Ingalls Industries in a research note on Wednesday, April 1st. They issued an “equal weight” rating and a $400.00 price target for the company. Wall Street Zen downgraded Huntington Ingalls Industries from a “buy” rating to a “hold” rating in a research report on Monday, May 18th. Finally, Weiss Ratings downgraded Huntington Ingalls Industries from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, May 6th. Four equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $374.00.

Key Headlines Impacting Huntington Ingalls Industries

Here are the key news stories impacting Huntington Ingalls Industries this week:

• Positive Sentiment: HII reported second-quarter earnings of $5.27 per share, well above the $3.79 analyst consensus and up from $3.86 a year earlier. Revenue rose 10.9% year over year to $3.42 billion, also exceeding the $3.15 billion estimate. HII Reports Second Quarter 2026 Results
• Positive Sentiment: Management raised its fiscal 2026 revenue outlook to $13.2 billion-$13.6 billion, above the roughly $13.0 billion consensus, while citing strength in shipbuilding and higher ship volumes. HII Earnings Call: Shipbuilding Strength Drives Upbeat Outlook
• Positive Sentiment: New awards for Block VI Virginia-class and Build II Columbia-class submarines, reportedly totaling $76.6 billion in Navy contracts for the broader shipbuilding team, support long-term backlog and revenue visibility. HII’s backlog rose to approximately $57.3 billion. HII is Awarded Contracts for Construction of Submarines
• Neutral Sentiment: The board declared a quarterly dividend of $1.38 per share, payable September 11 to shareholders of record August 28. The dividend reinforces shareholder returns but is unlikely to be the primary catalyst for the market’s reaction. HII Declares Quarterly Dividend
• Negative Sentiment: Investors will continue monitoring profitability, as prior expectations pointed to higher general and administrative costs potentially pressuring margins. HII’s reported net margin was 4.71%, despite the substantial earnings beat. Huntington Ingalls to Post Q2 Earnings

About Huntington Ingalls Industries

Huntington Ingalls Industries (NYSE: HII) is America’s largest military shipbuilding company and a leading provider of professional services to the U.S. government. Headquartered in Newport News, Virginia, HII designs, constructs and maintains nuclear-powered aircraft carriers, submarines and other complex vessels for the U.S. Navy. The company’s products include nuclear aircraft carriers, Virginia-class and Columbia-class submarines, as well as amphibious assault ships, destroyers and cutters.

Established in 2011 as a spin-off from Northrop Grumman’s shipbuilding operations, HII traces its heritage to two historic builders: Newport News Shipbuilding, founded in the 19th century, and Ingalls Shipbuilding, founded in 1938.