HII (NYSE: HII) saw its fourth-quarter revenue for 2022 rise by 5 percent to $2.8 billion compared with the prior-year period’s $2.67 billion, and recorded 10.7 billion in full-year revenue, up 12.1 percent from the previous year.
The military shipbuilder said Thursday it recorded approximately $3.2 billion in Q4 new contract awards and ended the year with a total backlog of about $47.1 billion.
Sales of the company’s Ingalls Shipbuilding segment reached $658 million for the quarter, an increase of 13.3 percent from the same period in 2021 driven by revenue growth in amphibious assault ships and surface combatants.
The Newport News Shipbuilding segment recorded $1.6 billion in Q4 sales, up nearly 3 percent from the prior-year period, and associated the increase to higher revenues in aircraft carriers and submarines.
Fourth-quarter revenue of HII Mission Technologies climbed 2.7 percent to $602 million driven by a higher volume of work in mission-based platforms related to the company’s acquisition of Alion Science and Technology.
“2022 represented another year of steady progress on our ship programs and growth in our Mission Technologies division. We finished the year with strong fourth quarter cash generation, which keeps us on track to meet our 5-year free cash flow commitment of $2.9 billion from 2020-2024,” said Chris Kastner, president and CEO of HII.
“I’m looking forward to 2023, as we are expecting to deliver five ships, and we will continue to grow our Mission Technologies division, capitalizing on the significant $66 billion pipeline,” he added.
During the earnings call Thursday, Kastner said HII’s top operational priority is hiring and workforce development and that he is confident in the company’s hiring plan and training and retention strategies.
“These strategies that center around employee skills and leadership development are gaining traction and we have had a good start to the year,” he told analysts.
“After hiring over 4,900 craft personnel in 2022, we expect a similar hiring rate in 2023, while at the same time, improving our productivity, attendance and over time together to drive performance,” Kastner added.
The chief executive shared his views on inflation and the status of supply chain and lauded the passage and enactment of fiscal year 2023 defense appropriations and defense authorization measures, which he said strongly back shipbuilding efforts.