Huntington Ingalls Industries (HII) FY2025 10-K Annual Report

Filed: Feb 5, 2026
Industrials
Ship & Boat Building & RepairingSEC EDGAR

Huntington Ingalls Industries (HII) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 5, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Huntington Ingalls Industries FY2025 10-K Analysis

Business Overview

  • Core business: Design and construction of nuclear and non-nuclear naval ships plus integrated all-domain defense technologies for U.S. Government
  • New emphasis: Increased AI and machine learning integration in Mission Technologies for battlefield decisions and network cyber defense
  • Strategic shift: End of U.S. Coast Guard Legend class NSC production with termination of 11th ship contract in 2025
  • Notable metric: Workforce over 44,000 employees; delivered USS Richard M. McCool Jr. (LPD 29) in 2024 and USS Ted Stevens (DDG 128) in 2025
  • Unique fact: Fiscal 2026 NDAA authorizes and funds William J. Clinton (CVN 82) and George W. Bush (CVN 83) Gerald R. Ford class aircraft carriers

Management Discussion & Analysis

  • Revenue stable supported by strong defense demand and federal funding, no exact YoY dollar change given
  • Operating margin not explicitly stated, inflation and higher borrowing costs pressure contract execution costs
  • Best performing segment: Shipbuilding programs with $26B procurement authorization including submarines and aircraft carriers
  • Worst supply chain conditions: labor shortages, delivery delays, raw materials shortages causing increased lead times and price inflation
  • Capital allocation: $1.5B for Maritime Industrial Base investments, no specific mention of buybacks, dividends, or total capex
  • Forward outlook: Uncertainty from geopolitical tension, policy shifts, labor market constraints, and federal funding risks, though defense spending remains bipartisan supported

Risk Factors

  • Regulatory risk: U.S. Government contract terminations under FAR can cause loss of expected profit and exposure to liabilities impacting financials
  • Macroeconomic threat: October 2025 U.S. federal government shutdown delayed payments, disrupted contracts, hurting cash flow and operations
  • Operational risk: Contract cost growth on incomplete ship designs risks profitability due to inaccurate revenue and cost estimates on large programs
  • Competitive risk: Shifts in Department of Defense military strategy toward cheaper alternatives may decrease demand for aircraft carrier shipbuilding
  • Financial risk: Concentration of nearly 100% revenue from U.S. Government exposes company to funding delays, partial appropriations, and budget cuts

Huntington Ingalls Industries FY2025 Key Financial Metrics
XBRL

Revenue

$12.5B

+8.2% YoY

Net Income

$605M

+10.0% YoY

Operating Margin

5.3%

+62bp YoY

Net Margin

4.8%

+8bp YoY

ROE

11.9%

+14bp YoY

Total Assets

$12.7B

+5.0% YoY

EPS (Diluted)

$15.39

+10.2% YoY

Operating Cash Flow

$1.2B

+204.3% YoY

Source: XBRL data from Huntington Ingalls Industries FY2025 10-K filing on SEC EDGAR. All figures in USD.

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