Revenue growth has exhibited significant volatility, ranging from a 5.4% contraction in 2024Q4 to a 16.1% expansion in 2025Q3, while operating margins remain constrained between 3.0% and 6.3% due to persistent inflationary and labor cost pressures.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 |
|---|
| Sales/Revenue | 12.85B | 12.48B | 11.54B | 11.45B | 10.68B | 9.52B | 9.36B | 8.9B | 8.18B | 7.44B | 7.07B | 7.02B | 6.96B | 6.82B | 6.71B | 6.58B | 6.72B |
| Revenue Growth % | 12.08% | 8.23% | 0.71% | 7.29% | 12.1% | 1.74% | 5.19% | 8.84% | 9.88% | 5.28% | 0.68% | 0.91% | 2.01% | 1.67% | 2.02% | -2.2% | - |
| Cost of Goods Sold | 11.25B | 10.9B | 10.09B | 9.81B | 9.24B | 8.16B | 7.69B | 7.37B | 6.38B | 6.02B | 5.61B | 5.52B | 5.54B | 5.58B | 5.63B | 5.55B | 5.83B |
| COGS % of Revenue | - | 87.3% | 87.43% | 85.63% | 86.51% | 85.64% | 82.16% | 82.8% | 78.09% | 80.88% | 79.34% | 78.59% | 79.63% | 81.86% | 83.91% | 84.43% | 86.73% |
| Gross Profit | 1.6B | 1.58B | 1.45B | 1.65B | 1.44B | 1.37B | 1.67B | 1.53B | 1.79B | 1.42B | 1.46B | 1.5B | 1.42B | 1.24B | 1.08B | 1.02B | 892M |
| Gross Margin % | 12.44% | 12.7% | 12.57% | 14.37% | 13.49% | 14.36% | 17.84% | 17.2% | 21.91% | 19.12% | 20.66% | 21.41% | 20.37% | 18.14% | 16.09% | 15.57% | 13.27% |
| Gross Profit Growth % | - | 9.31% | -11.91% | 14.31% | 5.26% | -18.08% | 9.08% | -14.52% | 25.86% | -2.53% | -2.86% | 6.07% | 14.55% | 14.64% | 5.37% | 14.8% | - |
| Operating Expenses | 972M | 977M | 915M | 865M | 875M | 855M | 904M | 788M | 871M | 759M | 623M | 614M | 669M | 738.4M | 739M | 624M | 0 |
| OpEx % of Revenue | - | 7.83% | 7.93% | 7.55% | 8.2% | 8.98% | 9.66% | 8.85% | 10.65% | 10.2% | 8.81% | 8.75% | 9.62% | 10.83% | 11.02% | 9.49% | - |
| Selling, General & Admin | 989M | 977M | 973M | 1.02B | 924M | 898M | 904M | 788M | 871M | 759M | 768M | 669M | 726M | 739M | 739M | 634M | 670M |
| SG&A % of Revenue | - | 7.83% | 8.44% | 8.92% | 8.65% | 9.43% | 9.66% | 8.85% | 10.65% | 10.2% | 10.87% | 9.53% | 10.44% | 10.84% | 11.02% | 9.64% | 9.97% |
| Research & Development | 0 | 0 | 27M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | 0.23% | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -2M | 0 | -85M | -157M | -49M | -43M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 627M | 608M | 535M | 781M | 565M | 513M | 766M | 743M | 920M | 869M | 837M | 907M | 748M | 498.6M | 340M | 400M | 255M |
| Operating Margin % | 4.88% | 4.87% | 4.64% | 6.82% | 5.29% | 5.39% | 8.18% | 8.35% | 11.25% | 11.68% | 11.84% | 12.92% | 10.75% | 7.31% | 5.07% | 6.08% | 3.79% |
| Operating Income Growth % | - | 13.64% | -31.5% | 38.23% | 10.14% | -33.03% | 3.1% | -19.24% | 5.87% | 3.82% | -7.72% | 21.26% | 50.02% | 46.65% | -15% | 56.86% | - |
| EBITDA | 953M | 937M | 861M | 1.13B | 923M | 806M | 1.01B | 970M | 1.12B | 1.07B | 1.02B | 1.09B | 942M | 724.6M | 524M | 584M | 438M |
| EBITDA Margin % | 7.42% | 7.51% | 7.46% | 9.85% | 8.65% | 8.46% | 10.82% | 10.9% | 13.74% | 14.43% | 14.47% | 15.48% | 13.54% | 10.62% | 7.81% | 8.88% | 6.51% |
| EBITDA Growth % | 9.92% | 8.83% | -23.67% | 22.21% | 14.52% | -20.43% | 4.43% | -13.62% | 4.56% | 4.99% | -5.89% | 15.39% | 30% | 38.28% | -10.27% | 33.33% | - |
| D&A (Non-Cash Add-back) | 326M | 329M | 326M | 347M | 358M | 293M | 247M | 227M | 203M | 205M | 186M | 180M | 194M | 226M | 184M | 184M | 183M |
| EBIT | 877M | 882M | 738M | 948M | 821M | 711M | 903M | 753M | 1.03B | 844M | 858M | 725M | 619M | 512M | 358M | 110M | 253M |
| Net Interest Income | -99M | -105M | -95M | -95M | -102M | -89M | -114M | -70M | -58M | -94M | -74M | -137M | -149M | -118M | -117M | -104M | -40M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 99M | 105M | 95M | 95M | 102M | 89M | 114M | 70M | 58M | 94M | 74M | 137M | 149M | 118M | 117M | 104M | 40M |
| Other Income/Expense | 151M | 169M | 108M | 72M | 154M | 109M | 44M | -60M | 51M | -97M | -53M | -275M | -241M | -104.6M | -99M | -394M | -122M |
| Pretax Income | 778M | 777M | 643M | 853M | 719M | 622M | 810M | 683M | 971M | 772M | 784M | 632M | 507M | 394M | 241M | 6M | 199M |
| Pretax Margin % | 6.05% | 6.22% | 5.57% | 7.45% | 6.73% | 6.53% | 8.65% | 7.67% | 11.88% | 10.37% | 11.09% | 9% | 7.29% | 5.78% | 3.59% | 0.09% | 2.96% |
| Income Tax | 173M | 172M | 93M | 172M | 140M | 78M | 114M | 134M | 135M | 293M | 211M | 228M | 169M | 133M | 95M | 100M | 68M |
| Effective Tax Rate % | 22.24% | 22.14% | 14.46% | 20.16% | 19.47% | 12.54% | 14.07% | 19.62% | 13.9% | 37.95% | 26.91% | 36.08% | 33.33% | 33.76% | 39.42% | 1666.67% | 34.17% |
| Net Income | 605M | 605M | 550M | 681M | 579M | 544M | 696M | 549M | 836M | 479M | 573M | 404M | 338M | 261M | 146M | -94M | 131M |
| Net Margin % | 4.71% | 4.85% | 4.77% | 5.95% | 5.42% | 5.71% | 7.44% | 6.17% | 10.22% | 6.44% | 8.11% | 5.75% | 4.86% | 3.83% | 2.18% | -1.43% | 1.95% |
| Net Income Growth % | 10.81% | 10% | -19.24% | 17.62% | 6.43% | -21.84% | 26.78% | -34.33% | 74.53% | -16.4% | 41.83% | 19.53% | 29.5% | 78.77% | 255.32% | -171.76% | - |
| Net Income (Continuing) | 605M | 605M | 550M | 681M | 579M | 544M | 696M | 549M | 836M | 479M | 573M | 404M | 338M | 261M | 146M | -94M | 131M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 15.39 | 15.39 | 13.96 | 17.07 | 14.44 | 13.50 | 17.14 | 13.26 | 19.09 | 10.46 | 12.14 | 8.36 | 6.86 | 5.18 | 2.91 | -1.93 | 2.69 |
| EPS Growth % | 10.73% | 10.24% | -18.22% | 18.21% | 6.96% | -21.24% | 29.26% | -30.54% | 82.5% | -13.84% | 45.22% | 21.87% | 32.43% | 78.01% | 250.78% | -171.75% | - |
| EPS (Basic) | - | 15.39 | 13.96 | 17.07 | 14.44 | 13.50 | 17.14 | 13.26 | 19.09 | 10.48 | 12.24 | 8.43 | 6.93 | 5.25 | 2.96 | -1.93 | 2.69 |
| Diluted Shares Outstanding | 39.3M | 39.3M | 39.4M | 39.9M | 40.1M | 40.3M | 40.6M | 41.4M | 43.8M | 45.8M | 47.2M | 48.3M | 49.3M | 50.4M | 50.1M | 48.8M | 48.77M |
| Basic Shares Outstanding | 39.3M | 39.3M | 39.4M | 39.9M | 40.1M | 40.3M | 40.6M | 41.4M | 43.8M | 45.7M | 46.8M | 47.9M | 48.8M | 49.7M | 49.4M | 48.8M | 48.77M |
| Dividend Payout Ratio | - | 35.21% | 37.45% | 29.37% | 33.16% | 34.19% | 24.71% | 27.14% | 15.79% | 24.01% | 17.1% | 20.05% | 14.5% | 9.58% | 3.42% | - | - |
Operational Execution and Labor
According to the provided quarterly data, HII's revenue growth has fluctuated significantly, ranging from a 5.4% contraction in 2024Q4 to a 16.1% expansion in 2025Q3, reflecting the inherent lumpiness of multi-year defense contract milestones and the timing of major ship deliveries within the U.S. Navy portfolio.
The inconsistent top-line trajectory suggests that revenue recognition is highly sensitive to specific project completion phases rather than steady-state demand. Investors should monitor whether the recent 13.4% growth in 2026Q1 represents a sustainable shift or merely a temporary acceleration driven by the timing of long-term contract milestones.
As reported in financial statements, HII's gross margins have struggled to maintain consistency, peaking at 15.5% in 2023Q4 before compressing to 13.2% in 2026Q1, highlighting the difficulty of managing fixed-price contract profitability in an environment characterized by persistent labor shortages and inflationary cost pressures.
The compression in gross margins appears to reflect the challenges of executing complex nuclear-powered vessel construction under rigid contractual terms. The inability to consistently expand margins suggests that the company's pricing power is effectively capped by government procurement structures, leaving little room for operational error.
Based on the income statement data, operating margins have remained compressed, hovering between 3.0% and 6.3% over the last ten quarters, which indicates that HII has yet to achieve meaningful operating leverage despite the scale of its multi-billion dollar revenue base in the defense sector.
The lack of significant operating margin expansion suggests that SG&A expenses are scaling in lockstep with revenue, likely due to the high administrative burden of managing complex government contracts. This trend warrants further investigation into whether the company can optimize its overhead as it integrates recent service-oriented acquisitions.
Analysis of the reported figures reveals significant EPS volatility, with quarterly earnings per share swinging from a low of $2.56 in 2024Q3 to a high of $6.90 in 2023Q4, largely driven by the impact of percentage-of-completion accounting and periodic cumulative catch-up adjustments on project estimates.
The reliance on internal cost estimates for revenue recognition introduces a layer of subjectivity that can obscure the underlying operational performance. Investors should be cautious of interpreting these quarterly fluctuations as indicative of long-term earnings power, as they are frequently distorted by non-operating items and accounting adjustments.
While the company benefits from a structural monopoly in nuclear carrier construction, the persistent labor shortages in the Virginia tidewater region, as evidenced by recent margin volatility, suggest that the market may be underestimating the risk of continued schedule slips and negative cumulative catch-up adjustments.
Short-term margin compression risks appear elevated if the company cannot effectively manage its specialized labor force to meet delivery timelines. The current valuation may be overly optimistic if the market fails to account for the potential for further earnings degradation should project costs continue to exceed initial estimates.
Quick answers to the most common questions about buying HII stock.
For fiscal year 2025, Huntington Ingalls Industries, Inc. (HII) reported total revenue of $12.48B. This represents a 85.7% increase compared to $6.72B in 2010.
Huntington Ingalls Industries, Inc. (HII) is profitable, generating $605.0M in net income for the fiscal year ending 2025 with a net profit margin of 4.8%.
Huntington Ingalls Industries, Inc. (HII) reported an operating income of $608.0M, resulting in an operating profit margin of 4.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Huntington Ingalls Industries, Inc. (HII) generated $1.58B in gross profit for the year, representing a gross profit margin of 12.7%. This demonstrates the company's core pricing power and production efficiency.