HII Posts $11.5B in Full Year 2024 Revenues With $48.7B in Total Backlog

HII reported $3 billion in fourth-quarter revenues for fiscal 2024 and saw its full-year revenue increase 0.7 percent to $11.5 billion.

In an earnings release published Thursday, the military shipbuilding company logged $12.1 billion in new contract awards and ended the year with a total backlog of approximately $48.7 billion.

HII recorded quarterly operating income of $110 million and Q4 diluted earnings per share, or EPS, of $3.15.

For the full year, net cash provided by operating activities hit $393 million and diluted EPS was $13.96.

Financial Results of 3 HII Business Segments

The Mission Technologies segment recorded $713 million in Q4 revenues and $2.9 billion in full-year revenues, up 8.8 percent from the prior-year period due to higher volumes in C5ISR and cyber, electronic warfare and space contracts.

Fourth-quarter revenue of the Newport News Shipbuilding segment was $1.6 billion, down 4.6 percent from the same period the previous year. For the full year, revenues dropped 2.7 percent to $6 billion due to cumulative catchup adjustments on the Virginia-class submarine program and reduced volumes on naval nuclear support services and aircraft carriers.

HII’s Ingalls Shipbuilding division reported $736 in Q4 revenues and $2.8 billion in full-year revenues, reflecting a 0.5 percent increase due to higher volumes in surface combatants.

CEO on Shipbuilding Work

At an earnings call Thursday, HII President and CEO Chris Kastner offered updates on the company’s work on several shipbuilding programs.

“As for aircraft carriers, we completed dry dock work for the RCOH of CVN 74 USS John C. Stennis and we are awarded the advanced planning contract for the RCOH of CVN 75 USS Harry S. Truman. Also, 94% of CVN 79 Kennedy compartments have been turned over to the Navy and all combat systems have been turned over to the test team,” the chief executive told analysts.

The HII board member noted that the company’s Ingalls Shipbuilding segment expects to launch the DDG 129 Jeremiah Denton Arleigh Burke-class guided missile destroyer and finish sea trials for the USS Zumwalt DDG-1000 guided missile destroyer in 2025.

“And in Newport News, we plan to deliver SSN 798 and float off SSN 800. Also, the team is focused on completing CVN 79. CVN 79 is scheduled to deliver in 2025, and the program team is evaluating options for optimizing combat capability additions and readiness for Navy workups,” Kastner stated. “In 2026, we expect to deliver DDG 128 Ted Stevens and LHA 8 Bougainville at Ingalls. And at Newport News, we expect to deliver SSN 800 and lay the keel for CVN 81 Doris Miller.”

Operational Initiatives

The former HII chief operating officer told analysts that the company will double down on its operational improvement measures in 2025 to address the remaining COVID-related labor, productivity and supply chain challenges.

One of its operational initiatives for the year is ensuring that HII’s new contract awards reflect the current production and economic environment. 

“Regarding the FY2024 Block V submarine contract agreement, negotiations are continuing and we continue to be confident that an agreement will be reached, although we do not have certainty today on the timing of that agreement,” Kastner said.

Other operational improvement actions the CEO mentioned during the call are the Mission Technologies segment’s realignment from six business units to four, implementation of a new payroll system and efforts to deploy HII’s enterprise operating system across all shipbuilding programs to help ensure consistency.