Huntington Ingalls Industries, Inc. (HII) AI Stock Analysis

Huntington Ingalls Industries, Inc. specializes in the design, construction, overhaul, and repair of military ships. Headquartered in Newport News, Virginia, the company operates across three segments: Ingalls Shipbuilding, Newport News Shipbuilding, and Technical Solutions. Ingalls Shipbuilding builds non-nuclear ships, including amphibious assault ships, expeditionary warfare ships, surface combatants, and national security cutters. Newport News Shipbuilding constructs nuclear-powered aircraft carriers and submarines while providing refueling and overhaul services. The Technical Solutions segment offers naval nuclear support, fleet maintenance, information technology solutions for the Department of Defense and intelligence agencies, nuclear management, and unmanned systems.

Revenue expanded from $9.52B in FY2021 to $12.48B in FY2025, representing a 5-year revenue CAGR of 5.9% from FY2020 to FY2025. Annual revenue grew 8.2% in FY2025 following 0.7% growth in FY2024. Operating margin was 5.4% in FY2021, reached 6.8% in FY2023, and stood at 4.9% in FY2025, with net margin at 4.8%. Net income rose to $605.0M in FY2025 with EPS of $15.37. For the trailing twelve months ended June 30, 2026, revenue reached $13.19B and operating margin was 7.1%. In the latest quarter, quarterly revenue increased 10.9% year-over-year while quarterly earnings grew 36.5%.

As of June 30, 2026, Huntington Ingalls Industries held $12.0M in cash and short-term investments against total debt of $2.94B, resulting in net debt of $2.92B. Shareholders' equity was $5.31B with a debt-to-equity ratio of 0.55 and a current ratio of 1.23. In FY2025, operating cash flow totaled $1.20B and free cash flow reached $794.0M. Capital expenditures were $402.0M, while capital returns included $213.0M in dividends paid and $14.0M in share buybacks.

At a last close of $272.00, HII has a market cap of $10.72B and an enterprise value of $13.55B. The stock trades at a trailing P/E of 16.2x and a forward P/E of 12.6x, compared to the median of its S&P 500 Industrials peers of 28.5x and 20.7x, respectively. Its EV/EBITDA of 10.7x sits below the peer median of 17.7x, and its price-to-sales of 0.8x trails the peer median of 3.3x. Over the past year, the stock declined 2.2%, trailing the 16.8% gain of the S&P 500 (SPY), while its 5-year return of 43.9% lagged the index's 83.0% return.

HII pays a quarterly dividend with an annual forward dividend of $5.52, resulting in a dividend yield of 2.03% and a payout ratio of 32.9%. The company has paid dividends for 15 consecutive years and recorded a 5-year annualized dividend growth rate of 5.1%. The last ex-dividend date was August 28, 2026.

Analyst ratings comprise 5 Strong Buy, 1 Buy, and 6 Hold recommendations, with no Sell or Strong Sell ratings. The mean price target is $356.42, representing a 31.0% premium over the last close of $272.00. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $18.50 on revenue of $13.36B. For the following fiscal year, 10 analysts estimate EPS of $21.01 on revenue of $14.22B. HII beat EPS estimates in all 4 of the last 4 quarters, with next earnings scheduled for October 29, 2026.

This page is an AI-written research summary of Huntington Ingalls Industries, Inc. (HII). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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