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Mar 31, 2023
Huntington Ingalls Q1 2023 Earnings Report
Huntington Ingalls Industries reported record first quarter revenues and reaffirmed FY23 guidance expectations.
Key Takeaways
Huntington Ingalls Industries (HII) reported a 3.8% increase in first-quarter revenue, reaching a record $2.7 billion, driven by growth in Newport News Shipbuilding and Mission Technologies. The company reaffirmed its FY23 guidance expectations. New contract awards in the first quarter of 2023 were approximately $2.6 billion, bringing total backlog to approximately $47.0 billion as of March 31, 2023.
Record first quarter revenues of $2.7 billion, up 3.8% compared to first quarter 2022
Net earnings of $129 million or $3.23 diluted earnings per share
Awarded $1.3 billion contract for amphibious transport dock LPD 32
Company reaffirms FY23 guidance expectations
Revenue by Segment
Forward Guidance
HII reaffirms its prior 2023 outlook expectations.
Positive Outlook
- Expect FY23 shipbuilding revenue between $8.4 and $8.6 billion
- Expect FY23 shipbuilding operating margin between 7.7% and 8.0%
- Expect FY23 Mission Technologies revenue of approximately $2.5 billion
- Expect FY23 Mission Technologies segment operating margin between 2.5% and 3.0%
- Expect FY23 Mission Technologies EBITDA margin between 8.0% and 8.5%
Challenges Ahead
- Operating FAS/CAS Adjustment: ($68M)
- Non-current State Income Tax Expense: ~$0M
- Interest Expense: ($105M)
- Non-operating Retirement Benefit: $149M
- Effective Tax Rate: ~21%
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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