Huntington Ingalls Q3 FY26: EPS $5.48 beats, revenue up 10.8%
HII beat consensus by $1.04 a share and lifted FY26 shipbuilding revenue guidance, and the quarter's real story is margin: operating margin went from 5.0% to 7.0%. Read the scorecard as a test of whether that margin holds, then check the cash line, where nine-month free cash flow is still negative $182 million. Contract awards of $32.4 billion in the quarter are the reason to keep reading.
1 · Expected vs. Actual
Free preview below$5.48 of diluted earnings against a $4.44 consensus estimate is a beat of $1.04 a share, or 23.5%. Net earnings of $217 million rose 49.7% on a 52.8% jump in operating income, so the beat came from the operating line rather than from tax or one-off below-the-line items. Gross margin was 13.6% of revenue, which is the number that decides whether a quarter like this repeats.
Revenue of $3.54 billion rose 10.8% from $3.19 billion, with Newport News up 18.1% to $1.91 billion on higher submarine and aircraft carrier volume. Ingalls added 5.8% to $876 million while Mission Technologies was essentially flat at $792 million. Product sales grew 17.6% to $2.44 billion even as service revenue slipped 1.8% to $1.10 billion.
Shipbuilding revenue guidance rose to $10.5–$10.7 billion from $10.2–$10.4 billion, but the 6.0%–6.5% shipbuilding operating margin was reaffirmed rather than raised. Mission Technologies segment margin guidance went to about 6% from about 5%, and free cash flow stayed at $500–$600 million. More revenue on an unchanged margin means the added volume is expected to earn a normal return, not a better one.
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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 2026-11-03
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