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Sep 30, 2020
Huntington Ingalls Q3 2020 Earnings Report
Huntington Ingalls reported increased revenues and earnings per share in Q3 2020.
Key Takeaways
Huntington Ingalls Industries reported a 4.3% increase in revenues to $2.3 billion and diluted earnings per share of $5.45, compared to $3.74 in the same period of 2019. The increase in revenue was driven by growth at both HII's Newport News and Ingalls Shipbuilding divisions. New contract awards in the quarter were approximately $1.6 billion, bringing total backlog to approximately $45.3 billion as of Sept. 30, 2020.
Revenues were $2.3 billion in the quarter, up 4.3% from Q3 2019.
Operating margin was 9.6%.
Diluted earnings per share was $5.45, compared to $3.74 in the same period of 2019.
Backlog of $45.3 billion as of Sept. 30, 2020.
Huntington Ingalls
Huntington Ingalls
Huntington Ingalls Revenue by Segment
Revenue by Segment
Ingalls Shipbuilding Revenue
CapyFin.comNewport News Shipbuilding Revenue
CapyFin.comMission Technologies Revenue
CapyFin.com Forward Guidance
Huntington Ingalls Industries provided the following financial outlook for 2020:
Positive Outlook
- Expect FY20 shipbuilding revenue of approximately $7.9 billion
- Expect FY20 shipbuilding operating margin between 5.5% and 6.5%
- Expect FY20 Technical Solutions revenue of approximately $1.25 billion and segment operating margin of approximately 2.6%
- Expect FY20 free cash flow of >$500 million
- Expect cumulative FY20 and FY21 free cash flow of approximately $900 million
Challenges Ahead
- The COVID-19 global pandemic has had wide ranging effects on the global health environment and disrupted the global and U.S. economies and financial markets.
- The pandemic is also impacting our operations, and the full impacts of COVID-19 on our fiscal year 2020 financial results and beyond are uncertain.
- Continued lower staffing levels and lower employee productivity could impact our ability to achieve anticipated milestones and further affect our 2020 financial results and beyond.
- Our employees, suppliers, customers, and communities are facing significant challenges, and we cannot predict how the COVID-19 environment will evolve or the impact it will have.
- For further information on the potential impact of COVID-19 to the company, see “Risk Factors” in our third quarter Form 10-Q.
Revenue & Expenses
Visualization of income flow from segment revenue to net income