Huntington Ingalls Industries, Inc. (HII) reported a decline in financial performance for the first quarter of 2025, with total sales and service revenues reaching $2.734 billion, a decrease of 3% from $2.805 billion in the same period of 2024. The company's net earnings also fell to $149 million, down from $153 million year-over-year, resulting in basic and diluted earnings per share of $3.79, compared to $3.87 in the prior year. The decrease in revenue was attributed to lower volumes across its segments, particularly in Newport News, Ingalls, and Mission Technologies.
In terms of operational metrics, HII's cost of sales and service revenues decreased by 4% to $2.340 billion, down from $2.430 billion in the previous year. General and administrative expenses rose to $246 million, a 6% increase from $232 million in 2024. The company reported an operating income of $161 million, reflecting a 5% increase from $154 million in the prior year, driven by improved performance in the Newport News segment, which saw a 4% increase in operating income to $85 million.
Strategically, HII made a significant acquisition in January 2025, purchasing the assets of 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 total backlog of $48.0 billion as of March 31, 2025, a slight decrease from $48.7 billion at the end of 2024, with the majority of this backlog attributed to U.S. Government contracts.
HII's cash flow from operating activities showed a notable decline, with cash used amounting to $395 million compared to $202 million in the same quarter of 2024. This change was primarily due to unfavorable trade working capital dynamics. The company anticipates that cash generated from operations, along with existing cash reserves and borrowing facilities, will be sufficient to meet its obligations over the next 12 months. Looking ahead, HII expects to convert approximately 22% of its backlog into sales in 2025, while continuing to navigate challenges related to defense spending and geopolitical uncertainties.
About HUNTINGTON INGALLS INDUSTRIES, INC.
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