Huntington Ingalls Q3 revenue beats on shipbuilding volumes

Overview

• U.S. shipbuilder's fiscal Q3 revenue rose 10.8% yr/yr, beating analyst expectations

• Adjusted EPS for fiscal Q3 rose to $5.48

• Company raised FY26 shipbuilding revenue guidance

Outlook

• Company raises FY26 shipbuilding revenue outlook to $10.5 bln-$10.7 bln

• Company maintains FY26 shipbuilding operating margin guidance at 6.0%-6.5%

• Company reaffirms FY26 free cash flow outlook at $500 mln-$600 mln

Result Drivers

• SHIPBUILDING VOLUMES - Co said Q3 revenue growth was driven by higher volumes at Newport News Shipbuilding and Ingalls Shipbuilding

• SUBMARINE AND CARRIER CONTRACTS - Newport News Shipbuilding Q3 results benefited from contract adjustments and incentives in Virginia-class submarine program and higher submarine and aircraft carrier volumes

• UNMANNED SYSTEMS - Mission Technologies Q3 operating income rose due to milestone achievement and higher volumes in Unmanned Systems

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for Huntington Ingalls Industries, Inc. is $354.00, about 26.8% above its October 28 closing price of $279.26

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads

• Oct 28 - South Korea's HD Hyundai to decide size of US shipbuilding investment by year-end

• Oct 29 - L3Harris beats Q3 revenue estimates, raises FY guidance range

• Oct 27 - Boeing Q3 revenue beats estimates on defense volumes

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)