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Huntington Ingalls Industries, Inc. (HII) is a global defense partner specializing in the construction and delivery of naval ships and advanced technologies . The company is organized into three main segments: Ingalls Shipbuilding, Newport News Shipbuilding, and Mission Technologies, each focusing on different aspects of shipbuilding and technology solutions . HII's primary customers are the U.S. Government and the U.S. Navy, with a significant portion of its revenue derived from these sources . The company's offerings include a range of naval vessels and integrated technology solutions, catering to both nuclear and non-nuclear needs .
- Ingalls Shipbuilding - Focuses on the design, construction, repair, and maintenance of non-nuclear ships, including amphibious assault ships and surface combatants .
- Newport News Shipbuilding - Specializes in the design, construction, overhaul, refueling, and maintenance of nuclear ships, such as aircraft carriers and submarines .
- Mission Technologies - Develops integrated technology solutions, including C5ISR systems, AI and machine learning applications, cyberspace strategies, electronic warfare, unmanned systems, and fleet sustainment .
- Labor productivity in your shipyards remains below pre-pandemic levels due to the inexperience of the workforce . When do you expect productivity to return to pre-pandemic levels, and what specific measures are you implementing to accelerate this improvement?
- Ingalls Shipbuilding's margins dipped this quarter due to factors like lower risk retirement on surface combatant programs and schedule adjustments for milestones such as DDG 129 . How do these developments affect your profitability outlook, and what steps are you taking to restore margins at Ingalls?
- You have adjusted delivery schedules for ships like SSN 798 Massachusetts, shifting delivery from late 2024 to early 2025 due to equipment replacement during testing . How will these schedule changes impact your financial commitments and confidence in meeting future milestones?
- Despite a strong trailing 12-month book-to-bill ratio of 1.15 and an $83 billion pipeline in Mission Technologies , you are maintaining a 5% growth guidance . What are the constraints preventing higher growth, and how might successful execution on your pipeline influence future growth rates?
- With Deloitte winning a $2.4 billion Navy shipbuilding contract that HII was not involved in , can you explain why Mission Technologies did not participate in this opportunity and how you are positioning the division to compete more effectively in such contracts?
Competitors mentioned in the company's latest 10K filing.
- L3 Harris, Amentum, ManTech, Leidos: Competitors in the Mission Technologies segment, competing domestically and internationally across business capabilities .
- Small businesses serving the intelligence community: Increasing competition in the Mission Technologies segment .
- Lockheed Martin, General Dynamics, Northrop Grumman, Raytheon, Boeing: Compete on certain contracts with major prime A&D contractors .
- Another large defense contractor: Competes for contracts to build surface combatants, submarines, and large deck amphibious ships .
- Smaller shipyards: Entered the market for surface combatants .
Customer | Relationship | Segment | Details |
---|---|---|---|
U.S. Government | Principal funder of HII’s major defense contracts | All | $11,430 million in 2023 revenue (about 99.8% of HII’s total $11,454 million revenue) |
U.S. Navy | Major purchaser of nuclear and non-nuclear ships, repairs, and maintenance | Shipbuilding | Accounts for approximately 81% of HII’s 2023 revenue |
Recent developments and announcements about HII.
Financial Actions
New Share Buyback Program
HII has announced a new buyback program involving the issuance of two new series of senior notes. The 5.353% Senior Notes due 2030 and the 5.749% Senior Notes due 2035 will be issued in aggregate principal amounts of $500,000,000 each. The 2030 Notes will mature on January 15, 2030, and the 2035 Notes will mature on January 15, 2035. Interest on these notes will be payable semi-annually on January 15 and July 15 each year, starting from July 15, 2025. The notes are subject to optional redemption and may be repurchased under certain conditions .