Mar 31, 2024

Huntington Ingalls Q1 2024 Earnings Report

HII reported record first quarter revenues and increased operating income, driven by growth in the Mission Technologies segment.

Key Takeaways

HII reported a strong start to 2024 with record first quarter revenues of $2.8 billion, up 4.9% compared to the first quarter of 2023. Operating income increased by 9.2% to $154 million, and net earnings were $153 million, or $3.87 diluted earnings per share. New contract awards totaled $3.1 billion, resulting in a backlog of $48.4 billion.

Record first quarter revenues of $2.8 billion, a 4.9% increase year-over-year.

Operating income rose to $154 million, up 9.2% from the previous year.

Net earnings reached $153 million, with diluted earnings per share at $3.87.

New contract awards amounted to $3.1 billion, boosting the total backlog to $48.4 billion.

Total Revenue
$2.81B
Previous year: $2.67B
+4.9%
EPS
$3.87
Previous year: $3.23
+19.8%
Total Backlog
$48.4B
Previous year: $47B
+3.0%
Gross Profit
$375M
Previous year: $350M
+7.1%
Cash and Equivalents
$10M
Previous year: $318M
-96.9%
Free Cash Flow
-$274M
Previous year: -$49M
+459.2%
Total Assets
$11.2B
Previous year: $10.8B
+2.9%

Huntington Ingalls

Huntington Ingalls

Huntington Ingalls Revenue by Segment

Forward Guidance

HII reaffirmed its FY24 outlook and 5-year (2024-2028) free cash flow outlook of $3.6B.

Positive Outlook

  • Shipbuilding Revenue: $8.8B - $9.1B
  • Shipbuilding Operating Margin: 7.6% - 7.8%
  • Mission Technologies Revenue: $2.7B - $2.75B
  • Mission Technologies Segment Operating Margin: 3.0% - 3.5%
  • Mission Technologies EBITDA Margin: 8.0% - 8.5%

Challenges Ahead

  • Operating FAS/CAS Adjustment: ($63M)
  • Interest Expense: ($90M)
  • Non-operating Retirement Benefit: $178M
  • Effective Tax Rate: ~21%
  • Capital Expenditures: ~5.3% of Sales

Revenue & Expenses

Visualization of income flow from segment revenue to net income