HII reported a 16.1% increase in revenue for the third quarter of 2025 (Q3 FY25), reaching $3.2bn, compared to the same period in 2024.
The rise was attributed to higher activity across its key business segments, including Newport News Shipbuilding and Ingalls Shipbuilding, where revenues rose by 14.5% and 24.7%, respectively, as well as Mission Technologies, which saw 11% growth.
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HII’s operating income for the third quarter reached $161m, with an operating margin of 5%, up from an operating income of $82m and a margin of 3%, respectively, during the same period last year.
Segment operating income rose to $179m from $97m last year, while segment operating margin improved to 5.6% from 3.5%.
These gains were mainly driven by more favourable results at Newport News Shipbuilding and Ingalls Shipbuilding relative to the prior year.
The company’s net earnings for the reporting period stood at $145m, up 43.6% from $101m in Q3 FY24.
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By GlobalDataDiluted earnings per share increased to $3.68 from $2.56 in the same period last year.
New contract awards totalled $2bn in Q3 FY25, which brought HII’s total backlog to $55.7bn as of 30 September 2025.
HII president and CEO Chris Kastner said: “We made steady progress on our 2025 operational initiatives in the third quarter. We have continued to see early signs that targeted investments are helping to strengthen our workforce and build a more robust maritime supply chain in support of higher shipbuilding throughput.”
HII expects shipbuilding revenue between $9.0 and $9.1bn in FY25 and expects shipbuilding operating margin between 5.5% and 6.5%.
Mission Technologies is anticipated to generate between $3.0 and $3.1bn in revenue and achieve a segment operating margin of approximately 4.5%.
The company projects with earnings before interest, taxes, depreciation, and amortization (EBITDA) margin expected between 8% and 8.5%.
Recently, HII and HD Hyundai Heavy Industries (HHI) entered into a memorandum of agreement to enhance the ongoing shipbuilding dialogue between the US and the Republic of Korea (RoK).
