Huntington Ingalls Q4 2020 Earnings Report
Key Takeaways
Huntington Ingalls Industries (HII) reported Q4 2020 revenues of $2.8 billion, a 14.3% increase from Q4 2019. Diluted earnings per share was $6.15, compared to $3.61 in the same period of 2019. New contract awards in the quarter were approximately $3.5 billion, bringing total backlog to approximately $46.0 billion as of Dec. 31, 2020.
Revenues were $2.8 billion in the quarter, up 14.3% from Q4 2019.
Operating margin was 11.1% in the quarter, compared to 7.7% in Q4 2019.
Diluted earnings per share was $6.15 in the quarter, compared to $3.61 in Q4 2019.
Backlog of $46.0 billion at year end.
Huntington Ingalls
Huntington Ingalls
Huntington Ingalls Revenue by Segment
Forward Guidance
Huntington Ingalls Industries provided its financial outlook for 2021. Expect FY21 shipbuilding revenue between $8.2 and $8.4 billion; and shipbuilding operating margin between 7.0% and 8.0%. Expect FY21 Technical Solutions revenue of approximately $1.0 billion and segment operating margin between 3.0% and 5.0%. Expect FY21 free cash flow between $150 and $250 million
Positive Outlook
- Shipbuilding Revenue between $8.2B - $8.4B
- Shipbuilding Operating Margin between 7.0% - 8.0%
- Technical Solutions Revenue ~$1.0B
- Technical Solutions Segment Operating Margin 3.0% - 5.0%
- Free Cash Flow $150M - $250M
Challenges Ahead
- Operating FAS/CAS Adjustment ($163M)
- Non-current State Income Tax Expense ~($5M)
- Interest Expense ($72M)
- Non-operating Retirement Benefit $181M
- Effective Tax Rate ~22%
Revenue & Expenses
Visualization of income flow from segment revenue to net income