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Huntington Ingalls Industries, Inc.

Q2 FY26Aerospace and Defense

Huntington Ingalls Industries, Inc. Q2 FY26 Results — Earnings Call Analysis

Q2 FY26 earnings call: what management said on revenue, margins and capex.

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What the Q2 FY26 call signalled

2 of 4 strong

RevenueModerate growth

MarginMargins steady

CapexCapex planned

Order bookOrder book rising

Price₹321

Market cap₹12.6K Cr

P/E20.8

Updated29 May 2026

Read4 min read

The short version

Shipbuilding revenue expected to grow steadily; reported 17.6% increase in Q1 2026 vs. Q1 2026 diluted EPS was $3.79, consistent with the same period last year.

From Huntington Ingalls Industries, Inc.'s Q2 FY26 earnings-call transcript · updated 29 May 2026.

Revenue & Sales Performance

Moderate growth

Shipbuilding revenue expected to grow steadily; reported 17.6% increase in Q1 2026 vs. Q1 2025.
Shipbuilding throughput targeted to improve by approximately 15% in 2026.
Outsourcing projected to increase by 30% year-over-year in 2026 to support capacity growth.
Medium-term upside opportunities from new battleship and frigate programs, pending acquisition strategy details.
Unmanned and autonomous systems budget to grow significantly in FY 2026 and FY 2027, with material business growth anticipated over the next few years.
Strong backlog of $54 billion supports sustained demand and incremental shipbuilding ramp.

2 more points from Huntington Ingalls Industries, Inc.'s call on revenue

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Profitability & Margins

Q1 2026 diluted EPS was $3.79, consistent with the same period last year.
Operating income for Q1 2026 was $155 million with a 5% margin, slightly down from $161 million and 5.9% margin last year.
Guidance reaffirmed for 2026 and the medium term, with confidence in achieving shipbuilding throughput improvements (~15% improvement in 2026).
Shipbuilding revenue and operating margins expected to steadily grow with increased throughput and outsourcing.
Operational initiatives (workforce growth, outsourcing, contract awards) on track to support growth.
Potential upside from new battleship and frigate programs, though details pending.
Free cash flow expected to be $500-$600 million by year-end, with $1 billion needed in H2 2026 to meet targets.

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Capital Expenditure Plans

Capex planned

Continuing capital investments to grow Newport News and Charleston shipyards substantially over the next several years.
In 2026, making hundreds of millions of dollars in capital investments at Newport News, including:
Manufacturing centers of excellence to support submarine throughput.
Finishing a multipurpose carrier refueling and overhaul work center.
Upgrades to support carrier activation.
Additional capital investments planned at Charleston to support increased throughput and growth trajectory.

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Fundraising & Capital Structure

The company ended the quarter with a cash balance of $216 million and total liquidity of approximately $1.9 billion.
No shares were repurchased during the quarter; a cash dividend of $1.38 per share was paid, totaling $54 million.
Free cash flow guidance remains stable, with expected improvements in the second half of the year.

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Order Book & Pipeline

Order book rising

Current backlog is approximately $54 billion.
Backlog includes a balanced mix of pre-COVID and post-COVID contracts, about 50-50 currently.
New awards expected to increase the backlog, especially with upcoming contracts for submarines (Virginia Class Block VI and Columbia build 2) anticipated in Q2.
Upcoming significant contracts include advanced procurement for CVN-82, funding for CVN-80 and CVN-81, RCOH for CVN-74, DDG 51 surface combatant advanced procurement, and new frigate programs.
Contract awards anticipated in the second quarter for Virginia Class Block VI and the next Columbia-class submarine.

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Frequently Asked Questions

What were Huntington Ingalls Industries, Inc. Q2 FY26 results?

Shipbuilding revenue expected to grow steadily; reported 17.6% increase in Q1 2026 vs. Q1 2026 diluted EPS was $3.79, consistent with the same period last year.

What is Huntington Ingalls Industries, Inc. share price analysis?

Huntington Ingalls Industries, Inc. currently shows a below-average growth signal. The stock trades at a P/E of 20.8 with a market cap of $12,645. Investors should review the full earnings analysis for detailed insights.

Is Huntington Ingalls Industries, Inc. planning capital expenditure?

- Continuing capital investments to grow Newport News and Charleston shipyards substantially over the next several years.

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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.