Jun 30, 2023

Huntington Ingalls Q2 2023 Earnings Report

Huntington Ingalls reported record second quarter revenues and reaffirmed FY23 guidance.

Key Takeaways

Huntington Ingalls Industries (HII) reported a 4.7% increase in revenue to $2.8 billion for the second quarter of 2023, driven by growth in Newport News Shipbuilding and Mission Technologies. Net earnings were $130 million, or $3.27 diluted earnings per share. The company reaffirmed its shipbuilding and Mission Technologies FY23 guidance and free cash flow guidance.

Record second quarter revenues of $2.8 billion, up 4.7% compared to second quarter 2022

Net earnings of $130 million or $3.27 diluted earnings per share

Company reaffirms shipbuilding and Mission Technologies FY23 guidance

Company reaffirms free cash flow guidance

Total Revenue
$2.79B
Previous year: $2.66B
+4.7%
EPS
$3.27
Previous year: $4.44
-26.4%
Total Backlog
$46.9B
Previous year: $47.2B
-0.6%
Gross Profit
$389M
Previous year: $390M
-0.3%
Cash and Equivalents
$313M
Previous year: $375M
-16.5%
Free Cash Flow
$14M
Previous year: $208M
-93.3%
Total Assets
$10.9B
Previous year: $10.6B
+2.6%

Huntington Ingalls

Huntington Ingalls

Huntington Ingalls Revenue by Segment

Forward Guidance

HII reaffirms shipbuilding and Mission Technologies 2023 guidance, reaffirms free cash flow guidance and revises operating FAS/CAS adjustment, non-current state income tax and interest expense guidance

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 Mission Technologies segment operating margin between 2.5% and 3.0%, and Mission Technologies EBITDA margin between 8.0% and 8.5%
  • Expect FY23 free cash flow between $400 and $450 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income