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Huntington Ingalls Industries Inc

Huntington Ingalls Industries Inc

HII
$269.13USD↓-0.71%-1.92 today

MARKET CAP

10.6B

P/E (TTM)

17.5x

FWD P/E

14.0x

DAY RANGE

$268 – $277

52W RANGE

$251
$460

AI Summary

Stalk
TrimMedium

HII remains in a Stage 4 Decline with a bearish medium-term bias under declining EMAs and active support failure patterns. Short-term timing is neutral as price is extended into extreme oversold territory below declining EMAs without clear exhaustion signals. Execution suggests trimming into rallies toward the 9/21/50 EMA confluence zone to participate in further downside continuation.

  • ↑Q1 revenue rose 13.4% YoY to $3.1B, driven by strong defense budgets
  • ↑Backlog increased to $54B and Q1 contract awards totaled $4B, ensuring near-term visibility
  • ↓Free cash flow was negative $390M in Q1, straining liquidity
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The case for & against

Bull & Bear analysis

Bullish

Huntington Ingalls Industries, Inc. (NYSE: HII) is a leading player in the U.S. defense sector, specializing in shipbuilding and mission technologies. Known for its robust shipbuilding capabilities, the company operates through three primary divisions—Ingalls Shipbuilding, Newport News Shipbuilding, and Mission Technologies. HII's strategic positioning within the military-industrial complex highlights its vital role in supporting the U.S. Navy and addressing increasing defense needs driven by geopolitical dynamics.

Bull says

  • ↑Q1 revenue rose 13.4% YoY to $3.1B, driven by strong defense budgets
  • ↑Backlog increased to $54B and Q1 contract awards totaled $4B, ensuring near-term visibility
  • ↑Partnership with C3AI aims to integrate AI for autonomous shipbuilding efficiencies
  • ↑Management targets 15% throughput improvements and $250M in cost reductions by end-2026
  • ↑Declared a Q1 dividend of $1.38/share ($54M) to support shareholder returns
  • ↑Reasonable dividend yield and oil-price sensitivity may boost returns; liquidity remains moderate

Bear says

  • ↓Free cash flow was negative $390M in Q1, straining liquidity
  • ↓Negative earnings yield and weak profitability raise questions on return generation
  • ↓Analyst revisions remain negative and momentum is weak, reflecting bearish sentiment
  • ↓High leverage and volatility risk deter risk-averse investors amid execution pressures
  • ↓Delivery delays risk timelines for Virginia-class programs amid input-cost inflation

Investment themes with HII

High Dividend Yield↑ +0.32%

Companies paying above-average dividends

AVGO · JPM · XOM
Defense↓ -0.89%

Military equipment and defense contractors

BWXT · RKLB · CRS
Defense Tech↓ -0.44%

LMT · RTX · GD

Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 05-09-2026neutral

Transcript signals

Bull points

  • revenues of approximately $3.1 billion increased 13.4% compared to the same period last year. The higher revenue was attributable to year-over-year growth at all three divisions, with particularly strong growth at both shipyards. Shipbuilding revenue was up 17.6% compared to the first quarter of 2025.
  • Together, shipbuilding revenue was $2.4 billion, modestly ahead of the $2.3 billion guidance we had provided for the quarter.
  • We expect shipbuilding revenue of approximately $2.4 billion and shipbuilding operating margins between 5.7% and 6%. For mission technologies, we expect revenue of approximately $750 million and operating margin of approximately 4%, inclusive of the strategic investments that we expect to make and our unmanned capability and production capacity.

Bear points

  • Free cash flow in the quarter was negative $461 million.
  • We have some tax credits and collections and R&D that will come about, which will provide a tailwind to our performance as well in free cash flow.
  • I think you will see increase in labor. Obviously, you need to adjust for taking into consideration you have contractors that come in to do work as well that won't be on your role.
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