NYSE$HII

Huntington Ingalls Industries Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported record revenues and increased profitability, driven by growth across all segments and strong performance in Mission Technologies and Newport News Shipbuilding.

HII reported a strong second quarter with record revenues of $3.0 billion, up 6.8% year-over-year. Operating income increased by 21.2% to $189 million, and net earnings rose to $173 million, or $4.38 per diluted share. The company delivered the Virginia-class submarine New Jersey (SSN 796) and the amphibious transport dock Richard M. McCool Jr. (LPD 29).

  • Record second quarter revenues of $3.0 billion, up 6.8% compared to second quarter 2023.
  • Operating income of $189 million, up 21.2% compared to second quarter 2023.
  • Net earnings of $173 million or $4.38 diluted earnings per share.
  • Company raises the Mission Technologies revenue guidance range.

Headline financials

Total Revenue

$2.98B

Previous: $2.79B+6.8%
EPS

$4.38

Previous: $3.27+33.9%
Operating Margin

6.3%

No prior period
Segment Operating Income

$203M

No prior period
Segment Operating Margin

6.8%

No prior period
Ingalls Operating Margin

7.9%

No prior period
Newport News Operating Margin

7.2%

No prior period
Mission Technologies Operating Margin

4.7%

No prior period
Free Cash Flow

-$99M

No prior period
Capital Expenditures

-$165M

Previous: -$111M-48.6%
Net Income

$173M

Previous: $130M+33.1%
Operating Income

$189M

Previous: $156M+21.2%
Gross Profit

$2.98B

Previous: $2.79B+6.8%
Total Assets

$11.3B

Previous: $10.9B+4.2%
Stock-Based Comp

-$7M

Previous: $6M-216.7%

Revenue & EPS history

Huntington Ingalls · Revenue · Quarterly

$2.98B

Q2 2024+6.8%vs Q2 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Huntington Ingalls · $2.85B total across 3 segments · Q3 2023

  • Newport News Shipbuilding
    $1.45B+0.6%
  • Ingalls Shipbuilding
    $711M+14.1%
  • Mission Technologies
    $685M+15.1%

Forward guidance

HII reaffirms FY24 outlook for shipbuilding revenue and operating margin, raises FY24 Mission Technologies revenue guidance range, reaffirms FY24 outlook for Mission Technologies operating margin, updates interest expense outlook, and reaffirms five-year (2024-2028) free cash flow outlook of $3.6B.

Tailwinds

  • Reaffirming FY24 outlook for shipbuilding revenue
  • Reaffirming FY24 outlook for shipbuilding operating margin
  • Raising FY24 Mission Technologies revenue guidance range
  • Reaffirming FY24 outlook for Mission Technologies operating margin
  • Reaffirming five-year (2024-2028) free cash flow outlook of $3.6B

Headwinds

  • Updating interest expense outlook
  • The financial outlook, expectations and other forward-looking statements provided by the company for 2024 and beyond reflect the company's judgment based on the information available at the time of this release.
  • Non-GAAP measures.
  • Outlook is based on current tax law and assumes the provisions requiring capitalization of R&D expenditures for tax purposes are not deferred or repealed.
  • Repeal or deferral of provisions requiring capitalization of R&D expenditures would result in elevated non-current state income tax expense.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-0.6%

Avg return

Earnings day

-2.3%

Avg return

5 days after

-1.1%

Avg return

30 days after

52%

33 / 64 earnings

Positive

+10.1%

Q4 2017

Best reaction

-24.5%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.6%-13.0%-19.4%
Q4 2025-10.6%-3.3%+3.9%
Q3 2025+7.0%+5.9%+5.1%
Q1 2025-1.2%+1.1%-3.2%
Q4 2024-18.3%-14.2%+0.2%
Q3 2024-24.5%-22.9%-21.0%
Q2 2024-5.9%-8.4%+1.0%
Q1 2024-11.1%-10.3%-8.6%
Q4 2023+3.7%+2.8%+13.0%
Q3 2023+5.9%+5.1%+8.0%
Q2 2023-0.4%-0.8%-3.1%
Q1 2023+0.3%-1.2%+5.4%
Q4 2022-1.9%-4.2%-7.9%
Q3 2022-3.9%-3.6%-5.2%
Q2 2022+4.1%+3.1%+3.7%
Q1 2022-2.7%-5.6%-4.2%
Q4 2021-1.8%-3.8%+10.1%
Q3 2021-3.0%-2.6%-9.4%
Q2 2021+2.6%+3.3%+1.4%
Q1 2021+1.9%+0.9%+4.4%
Q4 2020+5.0%+4.4%+16.3%
Q3 2020+1.3%+7.2%+11.3%
Q2 2020-6.0%-5.7%-17.4%
Q1 2020+1.1%-2.9%+13.4%
Q4 2019-8.8%-12.1%-33.9%
Q3 2019+7.4%+8.5%+8.3%
Q2 2019-9.7%-9.7%-8.5%
Q1 2019-5.0%-6.5%-8.1%
Q4 2018+1.7%+0.9%-5.4%
Q3 2018-4.5%-8.9%-15.2%
Q2 2018+2.8%+1.8%+6.5%
Q1 2018-9.1%-4.3%-3.7%
Q4 2017+10.1%+10.2%+5.3%
Q3 2017+3.9%+2.5%+1.6%
Q2 2017+2.8%+2.8%+3.3%
Q1 2017-2.8%-2.5%-3.6%
Q4 2016+3.0%+3.4%+3.9%
Q3 2016-8.3%-6.0%+13.1%
Q2 2016-2.4%-2.8%-4.2%
Q1 2016+6.9%
Q4 2015-1.4%
Q3 2015+7.2%
Q2 2015-1.1%
Q1 2015-11.2%
Q4 2014+7.2%
Q3 2014+1.8%
Q2 2014+6.1%
Q1 2014-3.4%
Q4 2013+4.6%
Q3 2013+4.7%
Q2 2013+0.5%
Q1 2013-0.6%
Q4 2012+5.7%
Q3 2012-0.0%
Q2 2012+6.6%
Q1 2011-6.8%
Q1 2012-1.5%
Q4 2009-0.5%
Q4 2011-0.5%
Q3 2010+4.7%
Q3 2011+4.7%
Q2 2011+0.0%
Q4 2010+0.0%
Q2 2010+0.0%
Q1 2010

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