NYSE$HII

Huntington Ingalls Industries Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

HII's third quarter results were reported with revenues of $2.7 billion and diluted earnings per share of $2.56. The company updated its fiscal 2024 outlook and withdrew its 5-year free cash flow outlook.

HII reported a decrease in third-quarter revenue to $2.7 billion, a 2.4% decrease year-over-year, driven by lower volume at Ingalls Shipbuilding and Newport News Shipbuilding, which was partially offset by growth at Mission Technologies. Net earnings were $101 million, or $2.56 per share, compared to $148 million, or $3.70 per share, in the third quarter of 2023. The company is providing an updated fiscal 2024 outlook and withdrawing its 5-year free cash flow outlook.

  • Third quarter revenues were $2.7 billion.
  • Third quarter net earnings were $101 million or $2.56 diluted earnings per share.
  • Third quarter free cash flow was $136 million.
  • Total backlog reached approximately $49.4 billion as of September 30, 2024.

Headline financials

Total Revenue

$2.75B

Previous: $2.82B-2.4%
EPS

$2.56

Previous: $3.70-30.8%
Operating Margin

3.0%

No prior period
Segment Operating Income

$97M

No prior period
Segment Operating Margin

3.5%

No prior period
Ingalls Operating Margin

7.4%

No prior period
Newport News Operating Margin

1.1%

No prior period
Mission Technologies Operating Margin

4.7%

No prior period
Net Cash from Operating Activities

$213M

No prior period
Free Cash Flow

$136M

No prior period
Capital Expenditures

-$253M

Previous: -$164M-54.3%
Net Income

$101M

Previous: $148M-31.8%
Operating Income

$82M

Previous: $172M-52.3%
Gross Profit

$2.75B

Previous: $2.82B-2.4%
Total Assets

$11.1B

Previous: $10.6B+4.3%
Stock-Based Comp

$8M

Previous: $9M-11.1%

Revenue & EPS history

Huntington Ingalls · Revenue · Quarterly

$2.75B

Q3 2024-2.4%vs Q3 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 provided updated fiscal 2024 outlook, increasing FY24 Mission Technologies expected revenue range to between $2.8B and $2.85B and increasing FY24 Mission Technologies expected operating margin to approximately 3.75%.

Tailwinds

  • FY24 shipbuilding revenue expected to be approximately $8.8B
  • FY24 shipbuilding operating margin expected to be between 5.0% and 6.0%
  • Increasing FY24 Mission Technologies expected revenue range to between $2.8B and $2.85B
  • Increasing FY24 Mission Technologies expected operating margin to approximately 3.75%
  • Capital expenditures expected to be approximately 3.4% of sales

Headwinds

  • FY24 free cash flow expected to be between $0M and $100M
  • Company is withdrawing 5-year free cash flow outlook
  • Shipbuilding Operating Margin decreasing from 7.6% - 7.8% to 5.0% - 6.0%
  • Capital Expenditures decreasing from ~5.3% of Sales to ~3.4% of Sales
  • Free Cash Flow decreasing from $600M - $700M to $0M - $100M

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 Q3 2024

Historical avgQ3 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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