HII Reports Strong Revenue Growth in 2025
HII has announced impressive financial results for the fiscal year 2025, achieving revenues of $12.5 billion, marking an 8.2% increase from the previous year. The growth was driven by significant contributions from its shipbuilding divisions, with Ingalls Shipbuilding and Newport News Shipbuilding (NNS) reporting revenue increases of 11.2% and 9.0%, respectively. Additionally, HII’s shipbuilding throughput surged by 14% during the year, reflecting the company’s robust operational performance.
Financial Highlights and Future Outlook
In 2025, HII’s Mission Technologies segment generated $3.0 billion in revenue, an increase of $107 million or 3.6% compared to the prior fiscal year. The company’s operating income rose to $657 million, up from $535 million in 2024, resulting in an improved operating margin of 5.3%, up from 4.6%. HII’s diluted earnings per share also saw a rise, reaching $15.39, compared to $13.96 in the previous year.
During the fourth quarter of 2025, HII reported revenues of $3.5 billion, a notable increase from $3.0 billion in the same quarter of 2024. Ingalls Shipbuilding contributed $889 million in revenue for the quarter, driven by increased production of amphibious assault ships and surface combatants. Meanwhile, NNS generated $1.9 billion in quarterly revenue, primarily due to higher volumes of submarines and aircraft carriers.
HII President and CEO Chris Kastner expressed optimism about the company’s future, stating, “We made solid progress on our operational initiatives in 2025 and enter 2026 with strong momentum.” He emphasized the importance of continuing to enhance shipbuilding throughput to meet the growing demands of the U.S. Navy and other defense customers.
HII to Acquire South Carolina Manufacturing Facility to Expand Shipbuilding Capa…
Looking ahead, HII has set medium-term revenue growth targets of approximately 6% for both overall company revenue and shipbuilding revenue, with Mission Technologies expected to grow by around 5%. For the full year 2026, HII anticipates shipbuilding revenues between $9.7 billion and $9.9 billion, with an operating margin forecasted between 5.5% and 6.5%. Additionally, Mission Technologies revenue is projected to range from $3.0 billion to $3.2 billion, with an operating margin around 5% and an EBITDA margin between 8.4% and 8.6%.
Recently, NNS successfully completed builder’s sea trials for the John F. Kennedy (CVN 79), the second vessel in the Gerald R. Ford-class series of nuclear-powered aircraft carriers, further solidifying HII’s position in the defense sector.
