$HII · HUNTINGTON INGALLS INDUSTRIES, INC.
Huntington Ingalls reported Q3 FY2026 results with record revenues of $3.5B (+10.8% YoY), net earnings of $217M, and diluted EPS of $5.48. New contract awards hit $32.4B in the quarter, including Block VI Virginia-class and Build II Columbia-class submarine contracts. The company raised FY26 shipbuilding revenue guidance to $10.5B–$10.7B while reaffirming shipbuilding operating margin of 6.0%–6.5% and free cash flow of $500M–$600M.
- Q3 revenue hit a record $3.5B, up 10.8% YoY from $3.2B
- Diluted EPS of $5.48 vs $3.68 in Q3 2025, a 48.9% increase
- New contract awards totaled $32.4B in Q3, bringing YTD awards to $43.1B
- Shipbuilding revenue guidance raised to $10.5B–$10.7B from prior $10.2B–$10.4B
- Free cash flow surged to $429M in Q3 vs $16M in the year-ago quarter
Extended-hours trading shows HII at $296.44, up 6.15% vs the regular close of $279.26. The market is rewarding the massive $32.4B contract haul, raised guidance, and EPS nearly doubling YoY.
HII's $32.4B quarterly award haul and raised guidance signal a defense spending supercycle translating directly into backlog and earnings power.
The $32.4B in quarterly awards — including Block VI Virginia-class and Build II Columbia-class submarines — locks in ~90% of expected shipbuilding revenue through 2030, a visibility level few defense primes can match.
Ingalls Shipbuilding segment operating margin compressed to 6.7% from 7.9% YoY on lower surface combatant performance. Heavy reliance on U.S. Navy appropriations and contract execution risk on the $43.1B YTD award backlog.