- HII posted $3.4 billion in fiscal 2026 second-quarter revenue
- The company logged $6.7 billion in new contract awards, bringing total backlog to $57.3 billion
- The 2026 Navy Summit will explore AI, shipbuilding, digital engineering and more
HII reported $3.4 billion in fiscal 2026 second-quarter revenues, up 10.9 percent year-over-year, and ended the quarter with a total backlog of approximately $57.3 billion.
As shipbuilders like HII ramp up production to meet growing Navy demand, the Potomac Officers Club will host the 2026 Navy Summit on Aug. 27 to explore what’s next for the fleet. The summit will bring together government and industry leaders for discussions on AI, shipbuilding, digital engineering, unmanned systems and more. Register now to secure your seat at this premier gathering of naval innovation leaders.
In an earnings release published Thursday, the military shipbuilding company said it logged $6.7 billion in new contract awards during the quarter.
HII recorded quarterly net earnings of $208 million and diluted earnings per share of $5.27, up from $152 million and $3.86, respectively, in the second quarter of 2025. Net cash used in operating activities for the quarter was $31 million, and free cash flow was negative $150 million.
For the full year 2026, the company reiterated its free cash flow guidance of between $500 million and $600 million.
What Are the Financial Results of 3 HII Business Segments?
The Mission Technologies segment recorded $760 million in second-quarter revenues, a 3.9 percent decrease from the prior-year period due to lower volumes in all-domain operations and global security, partially offset by higher volumes in warfare systems and unmanned systems.
Newport News Shipbuilding posted $1.8 billion in second-quarter revenues, up 15.3 percent from the same period last year, driven by higher volumes in aircraft carriers and submarines.
HII’s Ingalls Shipbuilding division reported $845 million in second-quarter revenues, a 16.7 percent increase attributed to higher volumes in amphibious assault ships.
What Did HII CEO Chris Kastner Say on Shipbuilding Work?
At an earnings call Thursday, HII President and CEO Chris Kastner said the company plans to deliver five ships over the next 12 months, including three from Ingalls Shipbuilding.
The chief executive said the company raised its full-year 2026 shipbuilding revenue guidance to a range of $10.2 billion to $10.4 billion and its shipbuilding operating margin guidance to between 6 percent and 6.5 percent.
HII reached an agreement on contract modifications for the Virginia-class Block VI and Columbia-class submarine programs valued at a combined $76.6 billion, including approximately $25 billion for Newport News Shipbuilding and $5.5 billion for the Columbia program.
“These contracts represent critical demand signals and stability not just for our workforce, but for the thousands of suppliers across the country that provide parts for these submarines,” Kastner told analysts.
At Newport News, the HII chief executive said CVN 79 Kennedy completed builders trials and is on track for preliminary acceptance later this year, with final delivery in 2027. He added that CVN 80 Enterprise is now 64 percent erected, the keel for CVN 81 is expected to be laid later this year, and the Virginia-class submarine SSN-800 Arkansas is progressing toward delivery later this year.
What Awards Did HII’s Mission Technologies Segment Secure?
Kastner said Mission Technologies secured a $418 million recompete award to continue supporting shipboard-based elevators across Navy aircraft carriers and amphibious ships. He noted that a ROMULUS unmanned surface vessel advanced to the Navy’s Medium Unmanned Surface Vessel at-sea testing phase, scheduled for September, calling it a major milestone in the program’s development. In April, the company announced plans to build four ROMULUS 151 autonomous surface vessels.
The company also broadened its unmanned surface vessel industrial base through new partnerships with Bayou Metals and Halimar Shipbuilding, and secured the next production option for the Navy’s Lionfish small unmanned undersea vehicle program. Kastner said the award further demonstrates how HII’s commercial REMUS-300 has evolved into the Navy’s preferred next-generation unmanned underwater vehicle.
“The growth in budgets for autonomous products, coupled with a strong domestic and international pipeline, point to a potential significant growth in this market space,” he noted.
What Is HII’s Update on Operational Initiatives?
The former HII chief operating officer told analysts that shipbuilding throughput has improved 12 percent year to date, with the company targeting a 15 percent improvement for the full year.
Kastner said HII has hired more than 3,500 shipbuilders year to date and plans to increase distributed shipbuilding by 30 percent in 2026 to expand its regional industrial base network.
“We continue to evaluate meaningful opportunities to bring more capacity into the shipbuilding space including additional shipyard facilities,” he added.
