HII reported a record revenue of $3.2 billion during the third quarter of fiscal year 2025, up 16 percent year-over-year and exceeding the projected $2.96 billion by 8.11 percent.
In an earnings release published Thursday, the shipbuilding and defense services company posted earnings per share of $3.68, a 9.85 percent increase that surpassed analyst estimates of $3.35. HII’s stock price surged 7.45 percent in pre-market trading after the earnings announcement, demonstrating investor confidence in the company’s growth trajectory and performance.
Additionally, HII achieved net earnings of $145 million, with segment operating income of $179 million. The company also reported $118 million in cash from operations and $16 million in free cash flow.
What Drove HII’s Record Revenue Growth?
Revenue growth was driven by an 18 percent increase in shipbuilding sales and an 11 percent rise in mission technologies. Newport News Shipbuilding revenue reached $1.6 billion, while Ingalls Shipbuilding achieved $828 million. Mission Technologies reported $787 million in sales, supported by growth in unmanned systems, C5, ISR, cyber, electronic warfare and live virtual constructive training programs.
The company’s efforts include infrastructure enhancements, increased outsourcing and workforce expansion. More than 4,600 shipbuilders have been onboarded so far in 2025, improving retention and experience levels at both Ingalls and Newport News.
What Is the HII’s Outlook?
HII aims to increase throughput by 15 percent in 2025. It projects 2025 shipbuilding revenue of $9.0 to $9.1 billion and mission technologies revenue of $3.0 to $3.1 billion, with a cumulative free cash flow of $1.2 billion expected over 2025 to 2026.
What Did HII CEO Chris Kastner Say?
“We continue to support the identification of strategies to increase throughput across our shipbuilding programs. The beauty of Odyssey is it’s open source, so the implementation or incorporation of new software tools is pretty seamless,” HII President and CEO Chris Kastner said during the company’s quarterly earnings call Thursday.
