HII Q2 FY2026: EPS up 36.5% to $5.27, shipbuilding guidance raised
HII beat on earnings with $5.27 per share against a $3.84 consensus and lifted full-year shipbuilding revenue guidance to $10.2–$10.4 billion. The catch is cash: free cash flow was negative $150 million in the quarter. Read the sales and margin gains as real, then check whether the second half converts them into the $500–$600 million of free cash flow management still promises.
1 · Expected vs. Actual
Free preview belowDiluted EPS of $5.27 beat the $3.84 consensus and rose 36.5% from $3.86 a year ago. Operating margin improved to 6.1% from 5.3%, and segment operating margin to 6.6% from 5.6%. Tax expense of $46 million on $254 million of pretax earnings, an 18.1% rate, also helped the bottom line.
Revenue of $3.42 billion rose 10.9% from $3.08 billion a year earlier, with Newport News up 15.3% and Ingalls up 16.7%. Mission Technologies moved the other way, down 3.9% to $760 million. Product sales carried the mix at $2.27 billion versus $1.15 billion of service revenue.
The company raised shipbuilding revenue guidance to $10.2–$10.4 billion from $9.7–$9.9 billion, and lifted the low end of shipbuilding operating margin to 6.0% from 5.5% while keeping the top at 6.5%. Mission Technologies is unchanged at $3.0–$3.2 billion of revenue and roughly 5% operating margin. Free cash flow guidance stays at $500–$600 million.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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