Huntington Ingalls Q4 2023 Earnings Report
Key Takeaways
HII reported a strong fourth quarter with revenues up 13% year-over-year to $3.2 billion and diluted earnings per share of $6.90. The company's total backlog reached approximately $48.1 billion. HII anticipates continued growth and cash generation in the coming years.
Fourth quarter revenues increased by 13% year-over-year, reaching $3.2 billion.
Diluted earnings per share for the fourth quarter was $6.90, compared to $3.07 in the fourth quarter of 2022.
Total backlog reached approximately $48.1 billion as of December 31, 2023.
Operating income in the fourth quarter of 2023 was $312 million, with an operating margin of 9.8%.
Huntington Ingalls
Huntington Ingalls
Huntington Ingalls Revenue by Segment
Forward Guidance
HII anticipates mid to long term revenue growth of 4%+, with shipbuilding revenue growth of approximately 4% and Mission Technologies revenue growth of approximately 5%. FY24 free cash flow is expected to be between $600 to $700 million.
Positive Outlook
- Mid to long term HII revenue growth of 4%+
- Mid to long term shipbuilding revenue growth of approximately 4%
- Mid to long term Mission Technologies revenue growth of approximately 5%
- FY24 shipbuilding revenue between $8.8 and $9.1 billion; expect shipbuilding operating margin between 7.6% and 7.8%
- FY24 Mission Technologies revenue between $2.7 to $2.75 billion, Mission Technologies segment operating margin between 3.0% and 3.5%; and Mission Technologies EBITDA margin between 8.0% and 8.5%
Challenges Ahead
- Outlook is based on current tax law and assumes the provisions requiring capitalization of R&D expenditures for tax purposes are not deferred or repealed.
- Repeal or deferral of provisions requiring capitalization of R&D expenditures would result in elevated non-current state income tax expense.
- Changes in government and customer priorities and requirements (including government budgetary constraints, shifts in defense spending, and changes in customer short-range and long-range plans)
- Significant delays in appropriations for our programs and U.S. government funding more broadly
- Our ability to estimate our future contract costs, including cost increases due to inflation, and perform our contracts effectively
Revenue & Expenses
Visualization of income flow from segment revenue to net income