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Huntington Ingalls
(NYSE:HII)
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Rating:71Outperform
Price Target:
$309.00
â–²(4.25% Upside)
Action:Reiterated
Date:10/29/26
HII scores well overall primarily due to solid underlying financials (steady growth, improving leverage) and a strongly positive earnings-call outlook driven by record awards/backlog and raised guidance. The score is held back by uneven cash-flow predictability and a technical setup that suggests only a partial recovery versus the longer-term trend, despite reasonable valuation support.
Positive Factors
Backlog Visibility
The substantial backlog and high share of contracted revenue provide multi-year visibility into shipbuilding activity and reduce dependence on securing near-term awards. This supports workforce planning, capacity investment, and more durable revenue generation through 2030.
Negative Factors
Ingalls Execution Pressure
Weaker Ingalls performance shows that labor recovery and complex surface-combatant execution remain material constraints on consolidated profitability. If throughput and ship completion continue to lag expectations, cost pressure could delay the expected improvement in shipbuilding margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog Visibility
The substantial backlog and high share of contracted revenue provide multi-year visibility into shipbuilding activity and reduce dependence on securing near-term awards. This supports workforce planning, capacity investment, and more durable revenue generation through 2030.
Read all positive factors
Huntington Ingalls Key Performance Indicators (KPIs)
Any
Revenue By Segment
Breaks down sales across different segments, revealing which areas contribute most to growth and where there may be risks or opportunities for expansion.
Breaks down sales across different segments, revealing which areas contribute most to growth and where there may be risks or opportunities for expansion.
Data provided by:
The Fly
The FlyHuntington Ingalls (HII) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.00B
Dividend Yield1.98%
Average Volume (3M)548.13K
Price to Earnings (P/E)16.6
Beta (1Y)0.77
Revenue Growth13.97%
EPS Growth25.77%
CountryUS
Employees45,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)18.60
Shares Outstanding39,404,600
10 Day Avg. Volume525,273
30 Day Avg. Volume548,127
Financial Highlights & Ratios
PEG Ratio2.16
Price to Book (P/B)2.63
Price to Sales (P/S)1.07
P/FCF Ratio16.83
Enterprise Value/Market Cap1.27
Enterprise Value/Revenue1.03
Enterprise Value/Gross Profit3.64
Enterprise Value/Ebitda12.35
Forecast
1Y Price Target
$349.00Price Target Upside17.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)18.65
Revenue Forecast (FY)$13.41B
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 ...
How the Company Makes Money
HII makes money primarily by performing long-term contracts for the U.S. government (especially the U.S. Navy) and recognizing revenue as it delivers shipbuilding milestones, completes construction work, and performs maintenance, modernization, an...
Huntington Ingalls Earnings Call Summary
Earnings Call Date:Oct 29, 2026
(Q3-2026)
| Next Earnings Date:Feb 11, 2027
Earnings Call Sentiment Positive
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.
Read all updates
Q3-2026 Updates
Positive
Negative
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.
Read all positive updates
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 Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
70
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.53B | 12.48B | 11.54B | 11.45B | 10.68B | 9.52B |
| Gross Profit | 3.84B | 1.58B | 1.45B | 1.65B | 1.44B | 1.37B |
| EBITDA | 1.13B | 1.21B | 1.06B | 1.29B | 1.18B | 1.00B |
| Net Income | 733.00M | 605.00M | 550.00M | 681.00M | 579.00M | 544.00M |
Balance Sheet | ||||||
| Total Assets | 12.98B | 12.75B | 12.14B | 11.21B | 10.86B | 10.63B |
| Cash, Cash Equivalents and Short-Term Investments | 387.00M | 774.00M | 831.00M | 430.00M | 467.00M | 627.00M |
| Total Debt | 2.93B | 3.15B | 3.41B | 2.67B | 3.15B | 3.49B |
| Total Liabilities | 7.49B | 7.68B | 7.47B | 7.12B | 7.37B | 7.82B |
| Stockholders Equity | 5.49B | 5.07B | 4.67B | 4.09B | 3.49B | 2.81B |
Cash Flow | ||||||
| Free Cash Flow | 615.00M | 794.00M | 26.00M | 678.00M | 482.00M | 429.00M |
| Operating Cash Flow | 749.00M | 1.20B | 393.00M | 970.00M | 766.00M | 760.00M |
| Investing Cash Flow | -414.00M | -521.00M | -348.00M | -236.00M | -268.00M | -1.95B |
| Financing Cash Flow | -260.00M | -732.00M | 356.00M | -771.00M | -658.00M | 1.31B |
Huntington Ingalls Technical Analysis
Neutral
296.40
Price Trends
277.44
Positive
286.13
Negative
334.34
Negative
Market Momentum
1.06
Negative
56.16
Neutral
91.90
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HII, the sentiment is Neutral. The current price of 296.4 is above the 20-day moving average (MA) of 269.98, above the 50-day MA of 277.44, and below the 200-day MA of 334.34, indicating a neutral trend. The MACD of 1.06 indicates Negative momentum. The RSI at 56.16 is Neutral, neither overbought nor oversold. The STOCH value of 91.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HII.
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.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Huntington Ingalls Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $95.87B | 21.31 | 17.43% | 1.77% | 9.13% | 10.37% | |
73 Outperform | $145.48B | 22.28 | 78.85% | 2.16% | 7.86% | 57.22% | |
73 Outperform | $78.53B | 17.40 | 25.70% | 1.73% | 6.51% | 14.02% | |
73 Outperform | $9.47B | 29.58 | 11.76% | 1.02% | 10.46% | 28.28% | |
71 Outperform | $11.00B | 16.62 | 12.89% | 1.76% | 13.97% | 25.77% | |
70 Outperform | $48.53B | 26.17 | 9.41% | 1.80% | 7.29% | 10.75% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
HII
Huntington Ingalls
279.26
-14.28
-4.87%
GD
General Dynamics
354.35
16.98
5.03%
LHX
L3Harris Technologies
260.61
-21.58
-7.65%
LMT
Lockheed Martin
629.75
156.64
33.11%
NOC
Northrop Grumman
552.77
-22.84
-3.97%
DRS
Leonardo Drs
35.50
-2.60
-6.82%
Huntington Ingalls Corporate Events
Business Operations and StrategyExecutive/Board Changes
Huntington Ingalls Adds Former CEO Petters to Board
Positive
Oct 20, 2026
HII has strengthened its board by electing former president and CEO C. Michael Petters as a director effective Oct. 19, 2026, expanding the board from 11 to 12 members. Petters, who previously led the company from its 2011 spin-off from Northrop G...
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.