Huntington Ingalls Industries Reports Mixed Q3 and 9M Fiscal 2024 Results, Backlog Reaches $49.4 Billion

Huntington Ingalls Industries, Inc. (HII) reported mixed financial results for the third quarter and the first nine months of fiscal year 2024, reflecting both challenges and growth in various segments. For the three months ended September 30, 2024, total sales and service revenues were $2,749 million, a decrease of $67 million (2%) from $2,816 million in the same period of 2023. This decline was primarily attributed to lower volumes at the Ingalls and Newport News segments, partially offset by increased activity in Mission Technologies, which saw revenues rise by 4% to $709 million.

In contrast, for the nine months ended September 30, 2024, total sales and service revenues increased to $8,531 million, up $254 million (3%) from $8,277 million in the prior year. This growth was driven by higher volumes in Mission Technologies and Ingalls, despite a decrease in Newport News revenues.

Operating income for the third quarter fell sharply to $82 million, down 52% from $172 million in 2023, while for the nine months, it decreased to $425 million from $469 million, a decline of 9%. Net earnings for the third quarter were $101 million, a 32% drop from $148 million in the same quarter of the previous year. However, net earnings for the nine-month period rose to $427 million, an increase of $20 million (5%) compared to $407 million in 2023.

The company declared dividends of $1.30 per share for the third quarter, up from $1.24 in the same period last year. Despite the challenges, HII's total current assets decreased to $2,629 million from $2,880 million at the end of 2023, with cash and cash equivalents significantly dropping to $10 million from $430 million. However, contract assets increased to $1,714 million, and total stockholders’ equity rose to $4,203 million.

HII's backlog as of September 30, 2024, stood at $49.4 billion, an increase from $48.1 billion at the end of 2023, with U.S. Government orders comprising the majority. The company secured new contract awards totaling $9.8 billion during the nine-month period, including significant contracts for various naval vessels.

The company continues to face operational challenges, including labor availability, supply chain disruptions, and inflationary pressures, which have impacted performance. Additionally, ongoing investigations and legal proceedings, including issues related to welding compliance and asbestos liabilities, are being monitored, although they are not expected to materially affect the company's financial position.