Huntington Ingalls Industries Reports 4% Revenue Growth to $3.082 Billion in Q2 2025

Huntington Ingalls Industries, Inc. (HII) reported its financial results for the second quarter of 2025, revealing a total sales and service revenue of $3.082 billion, a 4% increase from $2.977 billion in the same period last year. For the first half of 2025, revenues reached $5.816 billion, slightly up from $5.782 billion in the prior year. The company's net earnings for the quarter were $152 million, down 12% from $173 million in the second quarter of 2024, while year-to-date net earnings totaled $301 million, an 8% decrease from $326 million in the first half of 2024. Basic earnings per share for the quarter were $3.86, compared to $4.38 a year earlier.

The financial performance reflects a mixed operational landscape, with notable changes in segment revenues. The Ingalls Shipbuilding segment saw a modest revenue increase to $724 million, driven by higher volumes in surface combatants, while the Newport News Shipbuilding segment reported revenues of $1.603 billion, up 4% due to increased activity in submarine programs. However, the Mission Technologies segment's revenue growth was limited to 3%, totaling $791 million, as it faced lower volumes in certain areas. Overall, the company’s operating income for the quarter was $163 million, down from $189 million in the previous year.

Strategically, HII made a significant acquisition in January 2025, purchasing W International SC, LLC and Vivid Empire SC, LLC for $133 million. This acquisition is expected to enhance the company’s shipbuilding capacity within its Newport News segment. The company also reported a backlog of $56.9 billion as of June 30, 2025, an increase from $48.7 billion at the end of 2024, indicating a strong pipeline of future work, primarily driven by U.S. government contracts.

Operationally, HII's employee headcount stood at approximately 44,000, with 45% covered by collective bargaining agreements. The company continues to navigate challenges in the defense spending environment, particularly with the federal budget operating under a Continuing Resolution for the full fiscal year. The outlook remains cautious, with management highlighting potential risks related to government appropriations and geopolitical tensions that could impact future performance.

Looking ahead, HII anticipates that approximately 22% of its backlog will convert into sales in 2025, supported by ongoing investments in shipbuilding and technology. The company expects to maintain sufficient cash flow to meet its obligations and fund capital expenditures, despite the challenges posed by inflation and market conditions.