Earnings Releases·Oct 29, 2026, 7:08 AM ET

HII — Third Quarter 2026 Earnings Summary

Q3 2026 revenues rose 10.8% YoY to $3.5 billion, while net earnings and diluted EPS surged 49.7% and 48.9% respectively to $217 million and $5.48; operating margin expanded to 7.0% from 5.0% and free cash flow jumped to $429 million from $16 million.
Management raised FY26 shipbuilding revenue guidance to $10.5 billion–$10.7 billion and set a cumulative FY26/FY27 free cash flow target of $1.2 billion–$1.3 billion, while reaffirming operating margin and FCF outlooks.
The company secured $32.4 billion in new contract awards during the quarter, bringing year-to-date awards to $43.1 billion and securing approximately 90% of expected shipbuilding revenue through 2030.
Segment performance varied with Newport News Shipbuilding driving growth via 18.1% revenue growth and 65.0% operating income increase, while Mission Technologies saw operating income double to $71 million; Ingalls Shipbuilding reported a 9.2% decline in segment operating income.
Capital return increased with a dividend hike to $1.38 per share, while long-term debt remained stable at $2.704 billion and contract assets grew to $2.125 billion.