Huntington Ingalls (HI4) AI Stock Analysis

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Huntington Ingalls

(BX Swiss:HI4)

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Positive Factors

Backlog visibilityContract coverage through 2030 provides unusually strong revenue visibility for the shipbuilding business and reduces reliance on near-term award timing. This backlog supports workforce and capacity planning, helps sustain multi-year utilization, and gives management a clearer foundation for improving margins and cash generation.

Negative Factors

Margin compressionProfitability remains positive, but lower net margins leave less room to absorb cost overruns, schedule disruption, or unfavorable contract adjustments. Sustained margin pressure could limit earnings growth even if revenue expands, making execution discipline and the planned recovery toward higher shipbuilding returns especially important.

Huntington Ingalls (HI4) vs. iShares MSCI Switzerland ETF (EWL)

Market Cap: CHF 12.37B
Dividend Yield: 1.84%
Average Volume (3M): 26
Price to Earnings (P/E): 16.9
Beta (1Y): 0.18
Revenue Growth: 5.74%
EPS Growth: 20.45%
Country: Switzerland
Employees: 46,000
Sector: Industrials
Sector Strength: 63
Industry: Aerospace & Defense

Huntington Ingalls Business Overview & Revenue Model

Company Description

Huntington Ingalls Industries, Inc. (HII) stands as a prominent American enterprise specializing in the comprehensive lifecycle management of military vessels, encompassing their design, construction, modernization, and maintenance. The company's div...

Huntington Ingalls Earnings Call Summary

Earnings Call Date:Oct 29, 2026(Q3-2026)|% Change Since:11.44%|Next Earnings Date:Feb 11, 2027

Earnings Call SentimentPositive

The call was strongly positive, marked by record quarterly revenue and earnings, $32.4 billion of awards, a record $86.2 billion backlog, raised shipbuilding revenue guidance, improved Mission Technologies margins, strong cash generation and multiple strategic program wins. The principal challenges were slower labor recovery and weaker surface-combatant performance at Ingalls, throughput running below the prior 15% target, lower global security volumes and unusually large Newport News contract adjustments. Overall, the positive operational, financial and backlog trends significantly outweighed the stated challenges.

Positive Updates

Record Quarterly Revenue and Earnings

Third-quarter revenue reached a record approximately $3.5 billion, up 10.8% year over year, while diluted EPS increased to $5.48 from $3.68 and net earnings rose to $217 million from $145 million.

Negative Updates

Slower Labor Recovery at Ingalls

Ingalls was impacted by a slower labor recovery because its wage increases were implemented near the end of the first quarter. Management described the start to the year as difficult, although it reported positive momentum in the third and fourth quarters.

Company Guidance

For 2026, HII expects shipbuilding revenue between $10.5 billion and $10.7 billion and shipbuilding operating margin between 6% and 6.5%; Mission Technologies revenue guidance remains between $3 billion and $3.2 billion, with the midpoint the most likely outcome based on our view today, while segment operating margins are expected to be approximately 6% and EBITDA margin approximately 9%. Effective tax rate guidance remains approximately 17%, CapEx is guided at $500 million, and cumulative free cash flow for 2026 and 2027 is expected to total between $1.2 billion and $1.3 billion. HII continues to view its medium-term revenue growth as a 6% multi-year CAGR, expects incremental shipbuilding margin improvement in 2027, and expects both margin and cash to incrementally improve annually, with shipbuilding ultimately reaching 9%-10% return on sales.

Huntington Ingalls Risk Analysis

Huntington Ingalls disclosed 30 risk factors in its most recent earnings report. Huntington Ingalls reported the most risks in the "Production" category.

Production - Risks related to the company’s ability to manufacture goods and services

Latest Risks Added

0 New Risks

Huntington Ingalls Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

CH:HI4 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GD	80Outperform	$99.29B	21.30	17.60%	1.71%	9.73%	10.46%
LMT	79Outperform	$139.32B	21.58	78.85%	2.26%	7.86%	57.22%
NOC	77Outperform	$77.94B	17.35	25.70%	1.74%	6.51%	14.02%
DRS	75Outperform	$9.74B	26.94	13.04%	0.98%	8.85%	37.35%
LHX	75Outperform	$51.38B	25.66	10.17%	1.79%	7.33%	15.31%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

* Industrials Sector Average

Performance Comparison

CH:HI4 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
CH:HI4	Huntington Ingalls Industries	249.24	31.76	14.60%
GD	General Dynamics	367.22	29.28	8.66%
LHX	L3harris Technologies	276.59	-7.07	-2.49%
LMT	Lockheed Martin	610.05	165.68	37.29%
NOC	Northrop Grumman Corp.	550.96	1.91	0.35%
DRS	Leonardo Drs, Inc.	36.64	2.41	7.03%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Huntington Ingalls AI Stock Analysis