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