Huntington Ingalls Industries (HII) has reported a 2.5% decline in revenues for the first quarter (Q1) ended 31 March 2025, amounting to $2.7bn.
This decrease has been attributed to lower volumes at Newport News Shipbuilding, Ingalls Shipbuilding, and Mission Technologies.
Operating income for Q1 2025 stood at $161m with an operating margin of 5.9%, showing an improvement from the $154m and 5.5% respectively recorded in Q1 2024. This increase was largely due to a more favourable operating FAS/CAS adjustment and improved segment operating results year-on-year, HII said.
Net earnings were $149m, a slight decrease from the $153m reported in the first quarter of 2024.
During the quarter, the company witnessed the issuance of contracts totalling $2.1bn. This influx of new agreements has contributed to the cumulative order backlog reaching an estimated value of $48bn by the end of March 2025.
Segment operating income for Q1 2025 was reported at $171m, a small increase from the $170m in Q1 2024. The figure were primarily driven by stronger results at Mission Technologies and Newport News Shipbuilding, which were largely offset by results at Ingalls Shipbuilding.
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By GlobalDataHII president and CEO Chris Kastner said: “We are encouraged by the pace of our operational initiatives in 2025. We expect throughput to ramp as we move through the year and, coupled with our cost savings initiatives, we expect steady improvement in support of our operational and financial goals.
“We are also very supportive of the administration’s commitment to expand our nation’s shipbuilding capabilities and the maritime industrial base.”
Ingalls Shipbuilding’s revenues for the Q1 2025 were $637m, a decrease of 2.7% from the previous year period, mainly due to lower volumes in amphibious assault ships.
Revenue from Newport News Shipbuilding stood at $1.4bn, down by 2.6% compared to same period a year ago. The decline is primarily attributed to lower volumes in aircraft carriers and naval nuclear support services, despite higher volumes in the Columbia-class submarine programme.
Mission Technologies reported revenues of $735m for the first quarter, a 2.0% decrease from the same period in 2024, due to lower volumes in C5ISR. This was partially offset by higher volumes in cyber, electronic warfare, and space.
HII forecasts shipbuilding revenues for FY25 to be between $8.9bn and $9.1bn, with an expected shipbuilding operating margin of between 5.5% and 6.5%.
Mission Technologies is projected to bring in revenues between $2.9bn to $3.1bn with EBITDA margin between 8.0% and 8.5%.
The company also anticipates a free cash flow of between $300m and $500m for FY25.
Last month, HII delivered the first two small uncrewed undersea vehicles (SUUVs) to the US Navy for the Lionfish system programme.
This delivery is part of a multi-year programme that could see the US Navy acquire up to 200 SUUVs, with a potential contract value exceeding $347m.
