Revenue grew 10.8% year over year to about $3.5B in 2026Q3 with operating margin recovering to 7.0%, but EPS volatility between $2.56 and $5.48 across ten quarters suggests the earnings rebound rests on only two quarters of improvement.
Huntington Ingalls Industries, Inc. (HII) annual income statement — 16-year revenue, gross profit & net income history
| 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 | 13.53B | 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 % | 12.64% | 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 | 11.79B | 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 | 1.74B | 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 % | 12.88% | 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 | 974M | 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 | 1B | 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 | 768M | 608M | 535M | 781M | 565M | 513M | 766M | 743M | 920M | 869M | 837M | 907M | 748M | 498.6M | 340M | 400M | 255M |
| Operating Margin % | 5.68% | 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 | 986M | 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 % | 7.29% | 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 % | 8.11% | 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) | 163M | 329M | 326M | 347M | 358M | 293M | 247M | 227M | 203M | 205M | 186M | 180M | 194M | 226M | 184M | 184M | 183M |
| EBIT | 945M | 882M | 738M | 948M | 821M | 711M | 903M | 753M | 1.03B | 844M | 858M | 725M | 619M | 512M | 358M | 110M | 253M |
| Net Interest Income | -47M | -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 | 47M | 105M | 95M | 95M | 102M | 89M | 114M | 70M | 58M | 94M | 74M | 137M | 149M | 118M | 117M | 104M | 40M |
| Other Income/Expense | 147M | 169M | 108M | 72M | 154M | 109M | 44M | -60M | 51M | -97M | -53M | -275M | -241M | -104.6M | -99M | -394M | -122M |
| Pretax Income | 915M | 777M | 643M | 853M | 719M | 622M | 810M | 683M | 971M | 772M | 784M | 632M | 507M | 394M | 241M | 6M | 199M |
| Pretax Margin % | 6.76% | 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 | 182M | 172M | 93M | 172M | 140M | 78M | 114M | 134M | 135M | 293M | 211M | 228M | 169M | 133M | 95M | 100M | 68M |
| Effective Tax Rate % | 19.89% | 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 | 733M | 605M | 550M | 681M | 579M | 544M | 696M | 549M | 836M | 479M | 573M | 404M | 338M | 261M | 146M | -94M | 131M |
| Net Margin % | 5.42% | 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 % | 28.82% | 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) | 733M | 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) | 18.51 | 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 % | 28.31% | 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 | 39.6M | 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 | 39.5M | 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% | - | - |
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.
Key Metrics
Top Statement Risk
Persistent skilled labor shortages
Metrics are mathematically derived from official filings.
Revenue Growth Re-Accelerating on Throughput
Based on reported figures, HII's revenue grew 10.8% year over year in 2026Q3 to roughly $3.5B, reversing a stretch of negative growth through 2025 and suggesting volume recovery is now carrying the top line.
The swing from negative growth in early 2025 to double-digit expansion by late 2025 and 2026 points toward delivery throughput catching up with a backlog that was already largely booked. Growth appears driven by volume rather than pricing, since contract structures cap upside on fixed-price work. Investors should monitor whether this pace holds once labor constraints limit further throughput gains.
Gross Margin Structurally Capped Near Thirteen Percent
As reported in financial statements, HII's gross margin has oscillated between 10.7% and 14.5% over the past ten quarters, with 13.6% in 2026Q3 representing a level that remains thin relative to defense peers.
Gross margin improvement in 2026 appears tied to fewer negative cumulative catch-up adjustments rather than a structural shift in pricing power. Cost-plus and fixed-price incentive contracts limit upside while preserving downside protection, which likely explains the narrow band. Peers such as General Dynamics at 15.1% and Northrop at 19.8% suggest HII has less room to absorb cost overruns.
Operating Leverage Limited by Overhead Rigidity
Based on EDBL's reported figures, HII's operating margin expanded from 3.0% to 7.0% across the period, while SG&A remained near $240M to $260M per quarter, indicating overhead is largely fixed.
Because SG&A has stayed flat in absolute dollars while revenue grew, the margin expansion is attributable mostly to gross profit gains rather than overhead efficiency. This pattern suggests operating leverage is real but depends on continued volume growth. Any slowdown in revenue would likely compress operating margin quickly given the fixed overhead base.
EPS Volatility Exceeds Operating Trend
As reported in financial statements, diluted EPS swung between $2.56 and $5.48 across ten quarters, with 2026Q3 EPS of $5.48 well above the $3.79 reported in 2026Q1, a volatility pattern that exceeds the underlying operating trend.
Quarterly earnings appear sensitive to percentage-of-completion estimate changes and cumulative catch-up adjustments, which can shift a single period's results materially. Net margin of 6.1% in 2026Q3 versus 4.8% in 2026Q1 likely reflects timing effects as much as durable earnings power. Investors should adjust for these items before extrapolating any single quarter.
Margin Recovery Could Prove Transitory
Based on reported figures, the 2026 earnings rebound rests on two quarters of improvement, and the 15% throughput target faces labor constraints that could limit how far margins can expand from current levels.
A bear case would emphasize that margin gains may reflect favorable estimate revisions rather than sustainable productivity, and that similar catch-up dynamics reversed earnings in 2024. If skilled labor scarcity restricts throughput, revenue growth could stall while fixed overhead continues to absorb a larger share of sales. This analysis is inferential and based on reported figures, and warrants further investigation into the drivers of recent estimate changes.