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HII Logs 4.7% Q2 Revenue Growth; Chris Kastner Offers Update on Shipbuilding Programs

HII (NYSE: HII) saw its second-quarter revenue for fiscal year 2023 climb 4.7 percent to $2.8 billion and reported net earnings of $130 million and diluted earnings per share of $3.27 for the quarter.

The military shipbuilding company said Thursday Q2 new contract awards reached about $2.6 billion and that it ended the quarter with a total backlog of approximately $46.9 billion.

The Newport News Shipbuilding segment posted $1.5 billion in Q2 sales, up 5.3 percent from the prior-year period driven by revenue increase in aircraft carriers and submarines.

Second-quarter revenue of HII’s Ingalls Shipbuilding division rose $6 million or 0.9 percent to $664 million due to revenue growth in surface combatants.

The Mission Technologies segment logged $645 million in Q2 sales, reflecting an increase of 7.5 percent in revenues driven by a high volume of work in mission-based platforms associated with growth in cyber, C5ISR, electronic warfare and live, virtual and constructive training.

“We continue to make progress on our top priorities of consistent shipbuilding execution and driving growth at Mission Technologies,” said Chris Kastner, president and CEO of HII.

“The teams at Newport News and Ingalls continue to hit important shipbuilding milestones and Mission Technologies secured another quarter of robust growth and record revenue generation,” he added.

At HII’s earnings call Thursday, Kastner provided updates on the company’s shipbuilding programs, including the completion of builder’s trials for National Security Cutter Calhoun (NSC 10) and delivery of the first Flight III Arleigh Burke-class guided-missile destroyer Jack H. Lucas (DDG 125) to the U.S. Navy.

“We expect to launch DDG 128 Ted Stevens, and LHA 8 Bougainville and deliver NSC 10 and LPD 29 Richard M. McCool, Jr., later this year,” the chief executive told analysts.

“At Newport News, we christened Virginia class attack submarine SSN 798 Massachusetts, and redelivered the Nimitz class aircraft carrier CVN 73 USS George Washington. Later this year, Newport News expects to float off SSN 798 and deliver SSN 796 New Jersey,” he added.

HII reaffirmed its shipbuilding guidance for FY 2023, projecting to record between $8.4 and $8.6 billion in full-year sales.

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