Huntington Ingalls Industries on Thursday posted what it called strong second quarter results driven by gains at its Mission Technologies segment with help from shipbuilding operations.
Huntington Ingalls Industries’ (HII) net income in the second quarter rose 33% to $173 million, or $4.38 a share, from $130 million, or $3.27 a share, a year ago, beating estimates of Wall Street analysts by 20 cents per share. Revenue increased 7% to $3 billion, a record second quarter, from $2.8 billion a year ago, the company said.
Mission Technologies, the segment that coordinates business development with the Department of Energy, generated $765 million in sales and service revenues, a 19% year-over-year increase, and $203 million in operating income, a 20% increase.
Results at HII’s shipbuilding segments were mixed. Ingalls Shipbuilding generated a 7% increase in sales on higher volumes in amphibious assault ships and destroyers, but operating income slid 14% on lower risk retirements on surface combatants.
At Newport News Shipbuilding, sales nudged up nearly 2% to $1.5 billion on work on the Columbia-class nuclear missile submarine and operating income climbed 17% to $111 million due to favorable contract adjustments, incentives and volume on the aircraft carrier refueling and overhaul program.
HII is an integrated subcontractor to Los Alamos National Laboratory prime Triad Nuclear Security, providing personnel for nuclear operations and manufacturing at the New Mexico nuclear-weapons design lab.
Chris Kastner, HII’s president and CEO, disclosed a delay in delivering the Virginia-class nuclear attack submarine Massachusetts (SSN-798) from late 2024 to early 2025 due to a “minor disruption” to replace equipment that was identified in testing. The issue has been resolved, he said in the company’s earnings call.
Despite the shipbuilding hiccups, HII is maintaining its 2024 guidance for shipbuilding sales, forecast at between $8.8 billion and $9.1 billion, and operating margin, expected to be between 7.6% and 7.8%. The company raised its sales outlook slightly for Mission Technologies to between $2.75 billion and $2.8 billion, a $50 million bump on both ends of the range. Operating margin at the segment is unchanged at between 3% and 3.5%.
A version of This story first appeared in Exchange Monitor affiliate publication Defense Daily.