HII Lifts FY26 Shipbuilding Revenue and Margin Targets on Strong Q2
HII sits 24% above its 52-week low of $256.45.
Summary
HII posted Q2 2026 revenue of $3.4 billion and EPS of $5.27, raised its full-year shipbuilding revenue and margin guidance, and reaffirmed its free cash flow outlook. Backlog reached $57.3 billion.
Key Events · Earnings and Guidance · HII
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Q2 Revenue Up 10.9%
Driven by higher volumes in aircraft carriers and submarines at Newport News and amphibious assault ships at Ingalls, second-quarter revenue reached $3.4 billion.
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EPS Surges 36.5%
Diluted EPS of $5.27 compared to $3.86 in Q2 2025, reflecting stronger operating performance and higher equity income from joint ventures.
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FY26 Shipbuilding Guidance Raised
The shipbuilding revenue outlook increased to $10.2–$10.4 billion from $9.7–$9.9 billion, while the operating margin low end was raised to 6.0% from 5.5%.
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Backlog Grows to $57.3 Billion
New contract awards of $6.7 billion in Q2, including a frigate lead yard services contract and continued submarine work, pushed total backlog higher.
Analysis · HII · Manufacturing
A robust second quarter saw revenue climb 10.9% to $3.4 billion and EPS reach $5.27, outpacing the prior-year period by 36.5%. Reflecting confidence in execution and demand, the company raised its full-year shipbuilding revenue guidance to $10.2–$10.4 billion and lifted the low end of its shipbuilding operating margin outlook to 6.0%. Backlog expanded to $57.3 billion, bolstered by $6.7 billion in new awards. The only soft spot was negative free cash flow of $150 million in the quarter, though the full-year outlook of $500–$600 million was reaffirmed. This earnings report reinforces the positive momentum from recent major contract wins, including the $76.6 billion submarine contract modification announced yesterday.
At the time of this filing, HII was trading at $318.32 on NYSE in the Manufacturing sector, with a market capitalization of approximately $11B. The 52-week trading range was $256.45 to $460.00. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.