Huntington Ingalls Industries on Thursday reported modest revenue and operating income increases for both fourth-quarter and full-year 2016. Specifically, the shipbuilder reported fourth-quarter revenue of $1.9 billion, a 0.9 percent increase from the same year-ending period of 2015. Meanwhile, it brought in $7.1 billion in revenue over the full year, up by 0.7 percent from 2015.
Fourth-quarter operating income landed at $268 million, up from $144 million in the fourth quarter of 2015. Huntington Ingalls earned $858 million in operating income for the entirety of 2016, compared to $769 million in 2015.
Diluted earnings per share for the quarter stood at $4.20, spiking from $1.06 during the same period in 2015. For the full year, the company collected $12.14 in diluted earnings per share, up from $8.36 in 2015. The company took in roughly $5.2 billion in new shipbuilding contract awards in 2016.
Huntington Ingalls’ Newport News Shipbuilding subsidiary reported fourth-quarter revenue of $1.1 billion, a 6.3 percent decrease from 2015 that it attributed to lower aircraft carrier and submarine revenues. The segment’s operating income was $139 million for the fourth quarter, up by $23 million year over year.
Newport News Shipbuilding ended 2016 with $4.1 billion in revenue, a 4.9 percent decrease from 2015, also related to a drop in aircraft carrier revenues; its operating income for the year was $386 million, a $15 million decrease from 2015.
The company noted that in December it formed a new reporting segment, Technical Solutions, which includes Stoller Newport News Nuclear (SN3), a subsidiary that provides nuclear waste management and environmental services. SN3 is one of several parent companies for Savannah River Nuclear Solutions, the contractor managing the Department of Energy’s Savannah River Site in South Carolina.
The Technical Solutions segment reported fourth-quarter revenue of $186 million, a 20.8 percent increase from the same period in 2015 in part due to higher nuclear and environmental services revenues. The company does not break down its numbers past the segment level and therefore did not elaborate on those revenues. The segment’s operating income for the quarter was $1 million and for the full year $8 million.
Technical Solutions also reported $691 million in revenue for the full year, a 12.2 percent increase from 2015 due to higher volumes in nuclear and environmental and fleet support, the company said.
The company has also performed waste management services for DOE at the Hanford Site in Washington state, the Idaho National Laboratory, the Paducah Gaseous Diffusion Plant in Kentucky, and the Waste Isolation Pilot Plant in New Mexico.
