HII reported $12.5 billion in 2025 revenue, an 8.2 percent increase over the prior year, fueled by surging shipbuilding volume at its Ingalls and Newport News yards.
The company said Thursday diluted earnings per share rose 10.2 percent year-over-year to $15.39, while free cash flow increased to $800 million, up from $40 million in 2024.
HII also reported a 14 percent year-over-year increase in shipbuilding throughput in 2025 and said it is targeting another 15 percent throughput increase in 2026.
“We made solid progress on our operational initiatives in 2025 and enter 2026 with strong momentum. With more than 40 ships at Ingalls and Newport News in active construction or modernization, our focus in 2026 is clear: We must build on this momentum, and continue to increase our shipbuilding throughput,” said Chris Kastner, HII president and CEO. “The U.S. Navy and all of our defense customers need our ships and technologies now more than ever and we are committed to delivering for our customer and the nation.”
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How Did HII Perform in Q4 2025?
HII posted fourth quarter 2025 revenue of $3.5 billion, up 16 percent from $3 billion in Q4 2024.
Operating income rose to $172 million and operating margin improved to 4.9 percent. Net earnings for the quarter totaled $159 million, while diluted earnings per share increased to $4.04 compared to $3.15 a year earlier.
What Drove Growth in HII Shipbuilding?
Ingalls Shipbuilding recorded Q4 revenue of $889 million, a 20.8 percent increase driven by higher volumes on amphibious assault ships and surface combatants. For the full year, Ingalls’ revenue rose 11.2 percent to $3.1 billion.
Newport News Shipbuilding reported Q4 revenue of $1.9 billion, up 19.1 percent, supported by increased volume across submarine and aircraft carrier programs. Its full 2025 revenue climbed 9 percent to $6.5 billion.
HII said major 2025 milestones included delivery of the Virginia-class submarine Massachusetts and the Flight III destroyer Ted Stevens.
Mission Technologies Tops $3B in Annual Revenue
HII’s Mission Technologies segment posted 2025 revenue of $3 billion, up 3.6 percent from 2024, and delivered a segment operating margin of 5 percent.
In an earnings call, Kastner highlighted several Mission Technologies milestones, including the development of the U.S. Army’s high-energy laser weapon system, the debut of the GRIMM electronic warfare system, the delivery of Lionfish small unmanned underwater vehicles to the U.S. Navy and the rollout of the ROMULUS unmanned surface vessel family powered by HII’s Odyssey autonomy software suite.
What Is HII Expecting in 2026?
HII forecasts 2026 shipbuilding revenue between $9.7 billion and $9.9 billion, with operating margins expected to range from 5.5 percent to 6.5 percent. Mission Technologies’ revenue is projected between $3 billion and $3.2 billion, with margins of about 5 percent. The company also forecast free cash flow between $500 million and $600 million in 2026.
