Latest news with #ChrisKastner
Yahoo
21-05-2025
- Business
- Yahoo
HII to Participate in Bernstein's 41st Annual Strategic Decisions Conference on May 28
NEWPORT NEWS, Va., May 21, 2025 (GLOBE NEWSWIRE) -- HII (NYSE: HII) will participate in Bernstein's Strategic Decisions Conference on May 28. A conversation with HII President and CEO Chris Kastner will begin at 3:30 p.m. Eastern time and will be webcast on About HII HII is a global, all-domain defense provider. HII's mission is to deliver the world's most powerful ships and all-domain solutions in service of the nation, creating the advantage for our customers to protect peace and freedom around the world. As the nation's largest military shipbuilder, and with a more than 135-year history of advancing U.S. national security, HII delivers critical capabilities extending from ships to unmanned systems, cyber, ISR, AI/ML and synthetic training. Headquartered in Virginia, HII's workforce is 44,000 strong. For more information, visit: HII on the web: HII on Facebook: HII on X: HII on Instagram: Contact: Brooke Hart (Media) Christie Thomas (Investors)
Yahoo
15-05-2025
- Business
- Yahoo
HII Q1 Earnings Call: Profit Beats Offset Revenue Miss as Shipbuilding Initiatives Progress
Aerospace and defense company Huntington Ingalls (NYSE:HII) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 2.5% year on year to $2.73 billion. Its non-GAAP profit of $3.31 per share was 17.8% above analysts' consensus estimates. Is now the time to buy HII? Find out in our full research report (it's free). Revenue: $2.73 billion vs analyst estimates of $2.79 billion (2.5% year-on-year decline, 2.1% miss) Adjusted EPS: $3.31 vs analyst estimates of $2.81 (17.8% beat) Adjusted EBITDA: $237.5 million vs analyst estimates of $210 million (8.7% margin, 13.1% beat) Operating Margin: 5.9%, in line with the same quarter last year Free Cash Flow was -$462 million compared to -$274 million in the same quarter last year Backlog: $48.05 billion at quarter end, in line with the same quarter last year Market Capitalization: $8.75 billion Huntington Ingalls' first quarter results were shaped by operational challenges in shipbuilding, with management highlighting production delays at Newport News due to late equipment deliveries and weather disruptions. CEO Chris Kastner acknowledged that while Ingalls Shipbuilding met its production goals, Newport News experienced setbacks, particularly on the CVN 80 carrier. The company also noted lower volumes in amphibious assault ships and nuclear support services as contributing factors to the revenue decline. Kastner stated, 'Once this equipment is received from our suppliers, which is scheduled throughout the summer, we anticipate an acceleration of progress.' Looking ahead, management maintained its full-year outlook and pointed to ongoing cost reduction efforts and increased outsourcing as key levers for future improvement. CFO Tom Stiehle noted that the company is 'progressing on each of these items,' expecting margin and free cash flow normalization in the coming years. Leadership also cited industry tailwinds, including new government contracts and executive orders aimed at strengthening the domestic shipbuilding base, as supportive of long-term growth. Management attributed the quarter's performance to specific operational issues and strategic moves within its core shipbuilding and Mission Technologies divisions. Production Delays at Newport News: Delays in receiving major equipment impacted progress on the CVN 80 carrier, with weather compounding the schedule variance. Management expects improvement once the necessary parts arrive during the summer. Shipbuilding Throughput Initiatives: Huntington Ingalls continued efforts to increase shipbuilding throughput by 20% year over year, including ramped-up outsourcing and the integration of its South Carolina facility. Ingalls Shipbuilding operations remained on track, while Newport News lagged due to the aforementioned equipment delays. Cost Reduction Plan: The company reaffirmed its goal of achieving $250 million in annualized cost reductions by year-end. Initiatives include contract negotiations, workforce development, and streamlining operational processes across shipyards. Mission Technologies Growth: The Mission Technologies division reported contract wins, such as a high-energy laser prototype for the U.S. Army and delivery of uncrewed undersea vehicles, signaling continued traction in advanced defense technologies. Strategic Partnerships and Policy Tailwinds: Huntington Ingalls established a memorandum of understanding with HD Hyundai Heavy Industries to explore collaborative shipbuilding opportunities. Management highlighted executive orders from the administration as supportive of domestic shipbuilding and defense innovation. Management's outlook centers on ramping up shipbuilding throughput, delivering on cost reductions, and capitalizing on policy-driven demand in the U.S. maritime sector. Operational Execution Needed: Achieving targeted increases in shipbuilding throughput and meeting delivery schedules, especially at Newport News, are critical for revenue and margin improvement. Defense Policy and Funding: The company expects sustained demand from new government contracts, industry initiatives, and executive orders aimed at expanding shipbuilding capacity and modernizing the defense industrial base. Labor and Supply Chain Dynamics: Management cited workforce retention, targeted hiring of experienced personnel, and timely receipt of key equipment as ongoing risks to schedules and cost efficiency. Doug Harned (Bernstein): Asked how increased government funding would translate into higher submarine production rates. CEO Chris Kastner pointed to targeted investments in workforce and facilities, noting, 'These are the right investments to get at the build rate.' David Strauss (Barclays): Inquired about the structure of new shipbuilding contracts and implications for margins. CFO Tom Stiehle explained the new contracts blend cost-type and incentive structures, aiming for a balance between affordability and profitability. Scott Mikus (Melius Research): Questioned whether more contracts would shift to cost-plus formats amid labor negotiations. Kastner responded that contract types would be determined case-by-case, emphasizing the importance of timely wage support for workforce retention. Myles Walton (Wolfe Research): Probed progress on hiring and attrition. Kastner reported 1,000 new hires in the quarter and noted attrition is 'moving in the right direction,' driven by hiring more experienced personnel. Ron Epstein (Bank of America): Asked about modernization and automation in shipyards. Kastner stated that while some automation is underway, the focus is on streamlining processes and increasing efficiency, rather than full-scale automation. In the coming quarters, the StockStory team will monitor (1) progress on shipbuilding throughput and timely resolution of supply chain and equipment delays, (2) execution of cost reduction and outsourcing initiatives to improve margins, and (3) the impact of new government contracts and policy measures on backlog and order flow. Additionally, the pace of workforce hiring and retention, as well as progress on Mission Technologies' advanced defense programs, will be important signposts for operational and financial performance. Huntington Ingalls currently trades at a forward P/E ratio of 15.8×. Is the company at an inflection point that warrants a buy or sell? Find out in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Defense Contractors Stocks Q1 Highlights: Huntington Ingalls (NYSE:HII)
Quarterly earnings results are a good time to check in on a company's progress, especially compared to its peers in the same sector. Today we are looking at Huntington Ingalls (NYSE:HII) and the best and worst performers in the defense contractors industry. Defense contractors typically require technical expertise and government clearance. Companies in this sector can also enjoy long-term contracts with government bodies, leading to more predictable revenues. Combined, these factors create high barriers to entry and can lead to limited competition. Lately, geopolitical tensions–whether it be Russia's invasion of Ukraine or China's aggression towards Taiwan–highlight the need for defense spending. On the other hand, demand for these products can ebb and flow with defense budgets and even who is president, as different administrations can have vastly different ideas of how to allocate federal funds. The 13 defense contractors stocks we track reported a strong Q1. As a group, revenues beat analysts' consensus estimates by 1.6% while next quarter's revenue guidance was in line. In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results. Building Nimitz-class aircraft carriers used in active service, Huntington Ingalls (NYSE:HII) develops marine vessels and their mission systems and maintenance services. Huntington Ingalls reported revenues of $2.73 billion, down 2.5% year on year. This print fell short of analysts' expectations by 2.1%. Overall, it was a mixed quarter for the company with an impressive beat of analysts' EBITDA estimates. 'We are encouraged by the pace of our operational initiatives in 2025. We expect throughput to ramp as we move through the year and, coupled with our cost savings initiatives, we expect steady improvement in support of our operational and financial goals. We are also very supportive of the administration's commitment to expand our nation's shipbuilding capabilities and the maritime industrial base," said Chris Kastner, HII's president and CEO. The stock is down 1.3% since reporting and currently trades at $227. Read our full report on Huntington Ingalls here, it's free. Formed through the split of IT services company SAIC, Leidos (NYSE:LDOS) offers technology and engineering solutions such as military training systems for the defense, civil, and health markets. Leidos reported revenues of $4.25 billion, up 6.8% year on year, outperforming analysts' expectations by 3.6%. The business had a very strong quarter with a solid beat of analysts' backlog and EBITDA estimates. The market seems happy with the results as the stock is up 5.9% since reporting. It currently trades at $156.49. Is now the time to buy Leidos? Access our full analysis of the earnings results here, it's free. Responsible for the development of the first stealth bomber, Northrop Grumman (NYSE:NOC) specializes in providing aerospace, defense, and security solutions for various industry applications. Northrop Grumman reported revenues of $9.47 billion, down 6.6% year on year, falling short of analysts' expectations by 4.7%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts' expectations. Northrop Grumman delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 10.3% since the results and currently trades at $476.04. Read our full analysis of Northrop Grumman's results here. Founded to commercialize SIMSCRIPT, CACI International (NYSE:CACI) offers defense, intelligence, and IT solutions to support national security and government transformation efforts. CACI reported revenues of $2.17 billion, up 11.8% year on year. This result beat analysts' expectations by 1.5%. It was a very strong quarter as it also produced an impressive beat of analysts' backlog estimates and an impressive beat of analysts' EBITDA estimates. The stock is up 9% since reporting and currently trades at $462.04. Read our full, actionable report on CACI here, it's free. Developing submarine detection systems for the U.S. Navy, Leonardo DRS (NASDAQ:DRS) is a provider of defense systems, electronics, and military support services. Leonardo DRS reported revenues of $799 million, up 16.1% year on year. This number surpassed analysts' expectations by 9.2%. Overall, it was a very strong quarter as it also put up an impressive beat of analysts' adjusted operating income estimates and a solid beat of analysts' EPS estimates. Leonardo DRS scored the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 9.8% since reporting and currently trades at $40.60. Read our full, actionable report on Leonardo DRS here, it's free. As a result of the Fed's rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed's 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump's victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
30-04-2025
- Business
- Globe and Mail
HII Launching New 'Build It: In America, For America' Ads Celebrating U.S.-based Manufacturing Work and Workforce
NEWPORT NEWS, Va., April 30, 2025 (GLOBE NEWSWIRE) -- HII (NYSE: HII), America's largest military shipbuilder, is launching a series of 15-second television advertisements as part of its nationwide 'Build It' campaign. The video advertisements, along with the broader 'Build It' campaign, celebrate the crucial manufacturing work performed in the U.S. to build and deliver platforms and technologies in support of the national defense. These include American-built U.S. Navy ships and submarines, as well as uncrewed underwater vehicles, technologies, and networks built and integrated by HII to connect and enable today's all-domain joint force. ''Build It' is a call to action to support the important work of building, in support of our national security,' HII President and CEO Chris Kastner said. 'It's hard work and deserves respect. Ultimately it helps to protect us and our families. This campaign recognizes the ongoing value and contributions of those who build careers out of building our national defense.' The ads feature actual shipbuilders, engineers and technologists who've worked for HII and who provide commentary in their own words. HII is the largest industrial employer in the commonwealth of Virginia, and in the state of Mississippi. The 'Build It' campaign supports revitalizing American manufacturing and strengthening the defense industrial base to meet the urgent, increased demand for ships and technologies by the U.S. Navy and the nation. A playlist of the video advertisements can be found at: In addition to recruiting motived talent to shipbuilding, HII is actively developing the next generation of skilled professionals through its apprenticeship programs offered in each of its three divisions. These programs offer a rigorous multi-year curriculum that combines hands-on training, academic coursework and real-world experience. The HII apprentice schools give students a direct path to skilled careers and long-term growth in the shipbuilding industry. By blending tradition with advanced technology, HII is not just filling jobs — it's developing leaders and investing in the future of the American workforce. This 'Build It' campaign can be found across HII digital outreach and social media and through educational partnerships to bring the message directly to the next generation of American builders. HII is hiring at all experience levels, offering paid training, competitive wages, long-term careers, and a strong sense of purpose. Jobs are available across three divisions: Newport News Shipbuilding in Virginia, builder of nuclear-powered aircraft carriers and submarines for the U.S. Navy. Ingalls Shipbuilding in Mississippi, builder of amphibious ships and destroyers for the U.S. Navy. Mission Technologies in Virginia, provider of digital defense and national security solutions, and the largest producer of unmanned underwater vehicles (UUVs). About HII HII is a global, all-domain defense provider. HII's mission is to deliver the world's most powerful ships and all-domain solutions in service of the nation, creating the advantage for our customers to protect peace and freedom around the world. As the nation's largest military shipbuilder, and with a more than 135-year history of advancing U.S. national security, HII delivers critical capabilities extending from ships to unmanned systems, cyber, ISR, AI/ML and synthetic training. Headquartered in Virginia, HII's workforce is 44,000 strong. For more information, visit: Contact: Greg McCarthy (202) 264-7126
Axios
16-04-2025
- Business
- Axios
1 big thing: Get your ship straight
President Trump last month promised new ships " very fast, very soon." But getting there will be difficult after years of decline. And for every vessel built in America, the Chinese pump out about 200. That gap and the measures needed to close it are coloring conversations here at Sea-Air-Space, the defense conference unfolding just south of the Capitol. Why it matters: China's commercial ascendancy feeds its military. Beijing's fleet is the largest in the world. Meantime, U.S. Navy "programs and their shipbuilders are effectively made to operate in a perpetual state of triage," according to a federal watchdog, whose reviews of recent performance show "lead ship challenges regularly cascade to follow-on ships, causing entire programs to run aground." Yes, but: Folks are searching for solutions. They acknowledge there exists no quick cure-all. At the show, McKinsey & Company floated the idea of private-equity intervention while BAE Systems touted a growing capacity for submarines after pouring $260 million into facilities in Florida and Kentucky. Before the show, Chris Kastner, the CEO of America's largest shipbuilder HII, told reporters he met with the president's advisers. "Any help we can provide to that team or to the administration to expand shipbuilding, we'll do that," he said. Separately, experts at the Center for Strategic and International Studies and Hudson Institute suggested leaning on South Korea and Japan, two U.S. allies second and third to China in market share. Between the lines: The maritime industrial base looks different than other sectors; mom-and-pop stores still supply key parts. What they're saying: "The conversation is louder than it's been," acting Chief of Naval Operations Adm. James Kilby said on the conference sidelines. "It's happening in Congress and in the White House and in industry."
