$HII · HUNTINGTON INGALLS INDUSTRIES, INC.
Huntington Ingalls Industries reported Q3 FY2026 results with diluted EPS of $5.48, up 49% from $3.68 in Q3 2025. Revenue grew 10.8% YoY to $3.537B, driven by higher product sales at Ingalls and Newport News. Total backlog nearly doubled to $86.2B from $53.1B at year-end 2025, fueled by $43.1B in new contract awards including nine Block VI Virginia-class and five Build II Columbia-class submarines.
- Q3 diluted EPS of $5.48 vs. $3.68 in Q3 2025, a 49% increase.
- Q3 revenue rose 10.8% YoY to $3.537B, driven by higher product sales.
- Total backlog reached $86.2B as of September 30, 2026, up from $53.1B at year-end 2025.
- New contract awards of $43.1B in the first nine months, including nine Block VI Virginia-class and five Build II Columbia-class submarines.
- Newport News segment operating income jumped 65% YoY to $132M in Q3 on favorable cumulative catch-up adjustments.
HII shares surged +11.14% to $310.38, adding $31.12 on the day. The market is rewarding the massive backlog expansion and earnings beat, with the $86.2B backlog figure — nearly doubling from year-end — signaling multi-year revenue visibility that the prior valuation did not reflect.
The $86.2B backlog — nearly double year-end levels — represents one of the largest single-quarter backlog expansions in defense sector history, locking in decades of Navy shipbuilding revenue.
The $43.1B in new awards — anchored by the Virginia and Columbia-class submarine programs — reinforces the defense shipbuilding sector's multi-decade demand tailwind from the AUKUS pact and Navy fleet expansion goals. HII's backlog now dwarfs peers, cementing its position as the Navy's indispensable industrial partner.
Operating cash flow collapsed to $99M for the nine months vs. $546M a year ago, driven by a $327M swing in accounts payable and accruals and a $367M increase in contract assets. Cash and equivalents fell to $387M from $774M at year-end 2025, tightening liquidity despite strong earnings.