HII reported revenue decline of 2.5 percent to $2.7 billion in the first quarter of 2025 compared to $2.8 billion during the same period in 2024. The company said Thursday that the slightly lower Q1 revenue is caused by decreased demand across Newport News Shipbuilding, Ingalls Shipbuilding and Mission Technologies.
Per Segment Revenue
HII’s Ingalls Shipbuilding business saw the biggest revenue drop from 655 million in Q1 of 2024 to 637 million in Q1 of 2025. The $18 million or 2.7 percent revenue decrease was caused by lower demand for amphibious assault ship services.
Meanwhile, the Newport News Shipbuilding reported $1.4 billion in earnings, a decrease of $38 million or 2.6 percent compared to $1.43 billion recorded in the same period the year prior. HII attributed the Q1 financial performance of NNS to lower volumes in aircraft carriers and naval nuclear support services, offset by higher volumes of Columbia-class submarines.
The mission technologies business segment saw its revenue decline by 2 percent year-over-year to $735 million. According to the company, demand for its command, control, communications, computer, cyber, intelligence, surveillance and reconnaissance offerings was lower in Q1.
HII also reported new contract awards worth $2.1 billion in total and $48 billion in backlog during the three-month period.
Full Year Projections
HII reaffirmed its full fiscal 2025 revenue outlook of up to $9.1 billion for its shipbuilding businesses and $3.1 billion for its mission technologies segment.
“We are encouraged by the pace of our operational initiatives in 2025,” stated Chris Kastner, president and CEO of HII. “We expect throughput to ramp as we move through the year and, coupled with our cost savings initiatives, we expect steady improvement in support of our operational and financial goals. We are also very supportive of the administration’s commitment to expand our nation’s shipbuilding capabilities and the maritime industrial base.”
