Latest news with #IngallsShipbuilding
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
Globe and Mail
01-05-2025
- Business
- Globe and Mail
HII's Ingalls Shipbuilding Hosts 'Signing Day' for Shipbuilder Academy Graduates
PASCAGOULA, Miss., May 01, 2025 (GLOBE NEWSWIRE) -- HII's (NYSE: HII) Ingalls Shipbuilding hosted a 'signing day' for the 2025 graduates of its Shipbuilder Academy at the shipyard Wednesday. This year, 43 students were offered full-time positions at Ingalls, marking the beginning of their careers with HII. The 'signing day' coincided with National Apprenticeship Day, recognizing the importance of connecting individuals to meaningful careers and assisting employers in building a skilled workforce. Through hands-on training, mentorship, and classroom instruction, participants in the Ingalls Shipbuilding Academy (ISA) gain invaluable experience that prepares them with the skills and knowledge needed to excel in a shipbuilding career. 'Through the Ingalls Shipbuilder Academy, we are developing the next generation of skilled professionals in the shipbuilding industry,' Anna Bourdais, director of the Maritime Training Center of Excellence at Ingalls Shipbuilding. 'These students have taken an important step toward meaningful careers, and we are incredibly proud of their growth, commitment and their future as part of the Ingalls team.' Photos accompanying this release are available at: During the signing ceremony, among parents and special guests, the high school seniors were honored in a way similar to traditional athletic signing ceremonies. Each student received and signed a contingent offer of employment, highlighting the position they will hold at Ingalls upon graduation. Many will join the company as apprentice helpers in crafts such as welders, painters, joiners, pipefitters and electricians. For students like Tommie Bettis, a senior from Moss Point High School, in Mississippi, the ISA program has opened the door for a dream career as a structural welder. 'It means so much to me to be signing with Ingalls, and I'm really thankful to my teachers for guiding me toward this career,' Bettis said. 'I'm excited to keep growing as a welder and to see how far I can take my skills.' Randi Vickers, a senior from Alma Bryant High School, in Alabama, said signing on with Ingalls made the day especially meaningful, as it allows her to continue her family's long-standing tradition of working in skilled trades. 'I come from a family of welders and electricians, so I'm proud to carry that tradition on as a welder at Ingalls,' Vickers said. 'Being able to tell people I weld, and that I will be building ships, is something I'm proud of. I like being able to tell people I do that.' Since 2016, over 450 students have graduated from the Shipbuilder Academy, allowing Ingalls to proactively invest in local workforce pipelines that are preparing young individuals for careers at the shipyard. The success of the program comes from the partnerships Ingalls has with 13 different high schools along the Gulf Coast including Biloxi, Gulfport, West Harrison, Long Beach, Pass Christian, Pascagoula, Gautier, Moss Point, East Central, Vancleave, St. Martin, Ocean Springs and Alma Bryant. In addition to establishing the Shipbuilder Academy, Ingalls also supports technical programs at three local high schools: Pascagoula, Moss Point and Alma Bryant. These initiatives provide students with the opportunity to build a solid future for themselves while nurturing a talent pipeline of future shipbuilders. By investing in education and workforce development, Ingalls reaffirms its commitment to building both ships and careers in the Gulf Coast region. For more information about careers at Ingalls shipbuilding visit, 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: 228-355-5663
Yahoo
01-05-2025
- Business
- Yahoo
HII's Ingalls Shipbuilding Hosts 'Signing Day' for Shipbuilder Academy Graduates
PASCAGOULA, Miss., May 01, 2025 (GLOBE NEWSWIRE) -- HII's (NYSE: HII) Ingalls Shipbuilding hosted a 'signing day' for the 2025 graduates of its Shipbuilder Academy at the shipyard Wednesday. This year, 43 students were offered full-time positions at Ingalls, marking the beginning of their careers with HII. The 'signing day' coincided with National Apprenticeship Day, recognizing the importance of connecting individuals to meaningful careers and assisting employers in building a skilled workforce. Through hands-on training, mentorship, and classroom instruction, participants in the Ingalls Shipbuilding Academy (ISA) gain invaluable experience that prepares them with the skills and knowledge needed to excel in a shipbuilding career. 'Through the Ingalls Shipbuilder Academy, we are developing the next generation of skilled professionals in the shipbuilding industry,' Anna Bourdais, director of the Maritime Training Center of Excellence at Ingalls Shipbuilding. 'These students have taken an important step toward meaningful careers, and we are incredibly proud of their growth, commitment and their future as part of the Ingalls team.'Photos accompanying this release are available at: During the signing ceremony, among parents and special guests, the high school seniors were honored in a way similar to traditional athletic signing ceremonies. Each student received and signed a contingent offer of employment, highlighting the position they will hold at Ingalls upon graduation. Many will join the company as apprentice helpers in crafts such as welders, painters, joiners, pipefitters and electricians. For students like Tommie Bettis, a senior from Moss Point High School, in Mississippi, the ISA program has opened the door for a dream career as a structural welder. 'It means so much to me to be signing with Ingalls, and I'm really thankful to my teachers for guiding me toward this career,' Bettis said. 'I'm excited to keep growing as a welder and to see how far I can take my skills.' Randi Vickers, a senior from Alma Bryant High School, in Alabama, said signing on with Ingalls made the day especially meaningful, as it allows her to continue her family's long-standing tradition of working in skilled trades. 'I come from a family of welders and electricians, so I'm proud to carry that tradition on as a welder at Ingalls,' Vickers said. 'Being able to tell people I weld, and that I will be building ships, is something I'm proud of. I like being able to tell people I do that.' Since 2016, over 450 students have graduated from the Shipbuilder Academy, allowing Ingalls to proactively invest in local workforce pipelines that are preparing young individuals for careers at the shipyard. The success of the program comes from the partnerships Ingalls has with 13 different high schools along the Gulf Coast including Biloxi, Gulfport, West Harrison, Long Beach, Pass Christian, Pascagoula, Gautier, Moss Point, East Central, Vancleave, St. Martin, Ocean Springs and Alma Bryant. In addition to establishing the Shipbuilder Academy, Ingalls also supports technical programs at three local high schools: Pascagoula, Moss Point and Alma Bryant. These initiatives provide students with the opportunity to build a solid future for themselves while nurturing a talent pipeline of future shipbuilders. By investing in education and workforce development, Ingalls reaffirms its commitment to building both ships and careers in the Gulf Coast region. For more information about careers at Ingalls shipbuilding visit, 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: Kimberly K. A photo accompanying this announcement is available at in to access your portfolio
Yahoo
22-04-2025
- Business
- Yahoo
HII Hosts HD Hyundai Heavy Industries Leaders at Ingalls Shipbuilding
PASCAGOULA, Miss., April 22, 2025 (GLOBE NEWSWIRE) -- HII (NYSE: HII) hosted HD Hyundai Heavy Industries leaders at the company's Ingalls Shipbuilding division Tuesday, advancing joint goals of the memorandum of understanding signed by the two companies earlier this month. The visit focused on identifying near-term opportunities and exploring the implementation of new processes that could support the acceleration of ship production. 'This visit is a continuation of the important dialogue taking place between HII and our international partners,' Ingalls Shipbuilding President Brian Blanchette said. 'Today's visit allowed us to showcase the great work our Ingalls shipbuilders do every day in support of national security and an opportunity to exchange ideas on best practices, while examining what we can begin working on right away.' The visit included meetings with Ingalls leadership, a tour of the shipyard and a stop at the company's new virtual welding lab, where the group experienced how this immersive, hands-on training environment is not only enhancing the skills of current and future shipbuilders, but also setting a new national benchmark for how technology can be leveraged to grow a highly proficient workforce in this essential trade. Photos accompanying this release are available at: 'We appreciate the opportunity to visit our partners at HII and see how they are using technology to enhance efficiency and quality at Ingalls,' Chief Executive of the Naval & Special Ship at HHI Won-ho Joo said. 'We look forward to building on the strong foundation set by our recent MOU announcement.' HII and HHI are two of the world's leading shipbuilders across multiple classes of ships. By working with shipbuilding allies, this strategic partnership aims to leverage the combined expertise and resources of both companies to advance technological innovation, maximize production efficiency, and strengthen the global defense industry. 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: HII Contact: Kimberly K. A photo accompanying this announcement is available at in to access your portfolio
Korea Herald
08-04-2025
- Business
- Korea Herald
HD Hyundai, Huntington Ingalls forge partnership to boost US naval shipbuilding
HD Hyundai signed a memorandum of understanding with Huntington Ingalls Industries, a US-based defense shipbuilder, on Monday, marking a major step in the Korean shipbuilding giant's expansion into the US naval market. The signing ceremony took place at Huntington Ingalls' exhibition booth during the Sea Air Space 2025 exhibition in Washington. Huntington Ingalls operates Ingalls Shipbuilding, the largest surface shipyard in the US, which builds two-thirds of the US Navy's Aegis destroyers and all large amphibious assault ships and national security cutters. Under the agreement, the two companies will collaborate to improve shipbuilding productivity, reduce costs and delivery times and advance the digital transformation of shipyards through automation, robotics and artificial intelligence technologies. The two companies also plan to explore joint investment opportunities, expand cooperation in workforce training and strengthen supply chain collaboration. This partnership further aims to advance the integration of process automation, robotics and AI in the development of digital shipyards, alongside workforce strategy and components outsourcing. In line with these goals, both parties are exploring opportunities for future joint investments. As this agreement marks the first collaboration between leading Korean and US naval shipbuilders, it is expected to serve as a foundation for deeper bilateral cooperation. 'This collaboration between Korea and the US will help advance both nations' shipbuilding industries and further strengthen defense ties," said Joo Won-ho, head of special ship business at HD Hyundai Heavy Industries. Brian Blanchette, president of Ingalls Shipbuilding, added, "This agreement marks a pivotal first step in enhancing shipbuilding capabilities through cooperation between allied nations. By combining our expertise, we will make a meaningful contribution to the construction of high-quality ships that will support the global national security."
