Huntington Ingalls Industries, NYSE: HII
Industrials · Aerospace & Defense
$300.49
-5.37%
Vol: 24K
Research Digest
Monday, June 15, 2026
No significant overnight updates
No material news in the last 48 hours.
Previous Market Intelligence
13 daysJun 14No significant overnight updatesNeutral▶
No material news in the last 48 hours.
May 21Huntington Ingalls showcased autonomous maritime systems including REMUS UUVs and ROMULUS USVs at the UK Combined Naval Event May 19-21, while Bernstein and Citi cut price targets (Citi to $405 from $441) on margin concerns following Q1 results.Mixed▶
HII's Q1 2026 results on May 5 showed revenue of $3.1B (+13.4% YoY) beating $3.02B consensus and EPS of $3.79 vs $3.69 expected, but the stock fell 12.06% in pre-market on margin compression (segment operating margin 5.6% vs 6.3% prior year) and negative free cash flow of $461M. Backlog reached $54B after $4.0B in new contract awards. The company achieved 18% YoY throughput improvement, exceeding its 15% target. HII and MetalCraft Marine delivered next-generation autonomous USV prototypes to the U.S. Marine Corps under a DIU contract. At the Farnborough Combined Naval Event May 19-21, HII presented its REMUS and ROMULUS unmanned vessel families plus the Odyssey Autonomous Control System. A buy-side analyst reiterated Buy on May 18 with $435 PT, but Bernstein and Citi cut targets (Citi to $405). Dividend of $1.38 declared with ex-date May 29.
May 20Huntington Ingalls posted Q1 revenue growth of 13.4% to $3.1B but shares plunged on margin compression, with Citi and TD Cowen cutting price targets.Mixed▶
Huntington Ingalls Industries reported Q1 2026 revenue of $3.1B, up 13.4% year-over-year and beating the $3.02B consensus, with EPS of $3.79 topping estimates of $3.69. However, segment operating margin contracted to 5.6% from 6.3%, reflecting ongoing execution challenges on pre-COVID era contracts, which sent shares down roughly 12% in pre-market on May 5 before rebounding 5.5% on May 12 to close at $333.56. New awards totaled $4.0B, raising total backlog to $54.0B, and the company reaffirmed full-year 2026 guidance with shipbuilding revenue of $9.7B-$9.9B. HII achieved an 18% YoY throughput improvement, exceeding its 15% target. The company also delivered next-generation autonomous USV prototypes to the U.S. Marine Corps with MetalCraft Marine. Citi cut its target to $405 from $441 (Buy maintained) and TD Cowen cut to $420 from $460.
May 19HII delivered next-gen autonomous USV prototypes to U.S. Marine Corps on May 15 with MetalCraft Marine partner.Mixed▶
HII, in partnership with MetalCraft Marine, delivered and sea-tested two ROMULUS-25 unmanned surface vessel prototypes for the U.S. Marine Corps under a Defense Innovation Unit contract, with successful demonstration of advanced autonomous mission behaviors. Shares jumped 5.5% on May 12 to close at $333.56 amid strong interest in defense stocks. The company continues to digest Q1 2026 results from May 5: revenue of $3.1B (up 13.4% YoY) beat consensus of $3.02B and EPS of $3.79 beat $3.69, but segment margins contracted to 5.6% from 6.3% and free cash flow was -$461M, with the stock initially falling 12% on margin concerns. HII reaffirmed full-year 2026 guidance: shipbuilding revenue $9.7-9.9B at 5.5-6.5% margins; Mission Technologies $3.0-3.2B at ~5% margins. Backlog rose to $54.0B with $4B in new contracts.
May 18Huntington Ingalls delivered AI-powered ROMULUS-25 autonomous USV prototypes to U.S. Marine Corps on May 15, while Bernstein cut its price target on margin concerns from Q1 earnings.Mixed▶
HII, with MetalCraft Marine, delivered two ROMULUS-25 autonomous unmanned surface vessels (USV) to the U.S. Marine Corps under a Defense Innovation Unit contract, with successful sea testing demonstrating advanced autonomous mission behaviors. Q1 2026 results (reported May 5) showed revenue up 13.4% to $3.1B (beat $3.02B est) with diluted EPS of $3.79, but segment operating margin contracted to 5.6% from 6.3%. Backlog reached $54.0B with $4.0B of new awards, and full-year 2026 outlook was reaffirmed. Shares surged 5.5% to $333.56 on May 12 amid defense sector strength. Bernstein cut its price target citing margin concerns. Analyst consensus is Buy with average 12-month target of $411.33. $1.7M of Q1 lobbying disclosed on carrier replacement, DDG-51 procurement, and submarines.
May 15TD Cowen maintains Buy on HII (May 14) as shares rally 5.5% to $333.56 following Q1 throughput beat despite $461M negative FCFPositive▶
On May 14, 2026, TD Cowen analyst Gautam Khanna maintained a Buy rating on Huntington Ingalls with price target previously cut to $420. Shares jumped 5.5% on May 12 to $333.56 amid renewed defense-stock interest. Q1 2026 revenue rose 13.4% to $3.1B exceeding the $3.02B consensus, with EPS of $3.79 beating $3.69. Throughput improved 18% YoY versus a 15% target, though operating margin compressed to 5.0% and free cash flow was negative $461M reflecting working capital timing. HII reaffirmed FY26 guidance and declared a $1.38 dividend with May 29 ex-date. Risk: pre-COVID era contract execution continues to pressure margins.
May 14Huntington Ingalls shares surge 5.5% to $333.56 on May 12 as JPMorgan adds Positive Catalyst Watch and HII wins $220.65M Navy contract.Positive▶
Huntington Ingalls Industries shares jumped 5.5% on May 12, 2026 to close at $333.56 amid renewed defense-sector momentum. The catalysts include a $220.65M Navy contract modification awarded May 11, JPMorgan placing HII on 'Positive Catalyst Watch' the same day, and Goldman Sachs reiterating its Buy rating. Q1 2026 results released May 5 showed revenue of $3.10B (up 13.4% YoY, beating $3.02B consensus) and EPS of $3.79 beating the $3.69 forecast. However, segment operating margin contracted to 5.6% from 6.3% on pre-COVID era contracts, and the company used $390M of cash with $461M negative free cash flow. HII reaffirmed full-year 2026 guidance: shipbuilding $9.7B-$9.9B revenue at 5.5-6.5% margins; Mission Technologies $3.0B-$3.2B at ~5%. Wolfe Research raised Q3 EPS estimates May 13.
May 13Huntington Ingalls beat Q1 with revenue +13.4% to $3.1B but stock plunged 12% on margin compression to 5.0% operating marginMixed▶
Huntington Ingalls reported Q1 2026 results on May 5, 2026, with revenue of $3.1B (up 13.4% YoY, beating $3.02B consensus) and EPS of $3.79 (vs $3.69 expected). However, the stock fell about 12% in pre-market trading as segment operating margin contracted to 5.6% from 6.3% on legacy pre-COVID contracts, and the company reported negative free cash flow of $461M. HII achieved 18% YoY throughput improvement and grew backlog to $54B with $4B of new awards. The company reaffirmed FY26 guidance: shipbuilding revenue $9.7B-$9.9B at 5.5%-6.5% margins, Mission Technologies $3.0B-$3.2B at ~5% margins. A $1.38 dividend was declared with ex-date May 29.
May 12Wall Street Zen downgraded Huntington Ingalls to Buy from Strong-Buy on May 11, following Q1 margin compression flagged in earnings.Mixed▶
Wall Street Zen cut HII to Buy from Strong-Buy in a note published Sunday May 11. The downgrade follows the May 5 Q1 print, which beat on revenue ($3.1B, +13.4% YoY vs $3.02B consensus) and EPS ($3.79 vs $3.70 consensus) but showed segment operating margin contracting to 5.6% from 6.3% and negative free cash flow of $461M. Total backlog reached $54B on $4.0B of new awards; HII reaffirmed full-year shipbuilding revenue guidance of $9.7-9.9B at 5.5-6.5% margins. A $1.38 cash dividend was declared with an ex-date of May 29. Bear case: margin compression on pre-COVID-era contracts and persistent negative quarterly free cash flow could pressure shares.
May 11Huntington Ingalls beat Q1 2026 estimates but stock fell 2% on negative free cash flow concerns despite reaffirmed full-year outlook.Mixed▶
HII reported Q1 2026 EPS of $3.79 (vs $3.70 consensus) on revenue of $3.10B (vs $3.02B), with revenue up 13.4% YoY driven by Newport News Shipbuilding, Ingalls Shipbuilding and Mission Technologies. Operating margin compressed to 5.0%. The company used $390M of cash in operations with negative free cash flow of $461M in Q1, citing timing and working capital. HII reported $4.0B in new awards raising backlog to $54.0B, and reaffirmed full-year 2026 outlook. Stock declined 2.02% to $319.54. Average analyst PT of $411.33 implies ~26% upside; Goldman Sachs maintains Buy.
May 8Q1 revenue +13.4% to $3.1B, EPS $3.79 beat; backlog $54B but stock down 5% post-earningsMixed▶
Huntington Ingalls reported Q1 2026 revenue of $3.1B up 13.4% from prior year driven by Newport News Shipbuilding and Ingalls growth, with EPS of $3.79 beating consensus of $3.73. Backlog grew to $54B on $4B new awards. Company reaffirmed full-year guidance. Negative free cash flow of $461M in Q1 reflects timing/working capital but FY26 forecast positive. Distributed shipbuilding strategy on track to grow outsourcing hours 30% YoY. Stock fell 5.05% after-hours; 22% pullback over prior month suggests profit-taking. 6 analysts maintain Buy rating with average target of $411.33.
May 7Huntington Ingalls reports Q1 revenue beat at $3.1B, up 13.4%, but stock falls 10.3% on negative free cash flow and margin concernsNegative▶
Huntington Ingalls reported Q1 2026 revenues of $3.1 billion, a 13.4% increase year-over-year, with stable EPS of $3.79 and $4.0 billion in new awards supporting $54.0 billion backlog. However, stock fell 10.3% despite earnings beat due to negative free cash flow of $461 million and margin compression to 5.0%. Newport News Shipbuilding revenue surged 19.3% to $1.67 billion on aircraft carrier and submarine volumes, while Ingalls Shipbuilding revenue rose 13.8% to $725 million. Company reaffirmed FY26 guidance including $500-600 million positive free cash flow.
May 6HII stock falls 10.3% despite Q1 earnings beat due to margin compression and negative cash flowNegative▶
Huntington Ingalls reported Q1 2026 revenue of $3.1B (+13.4% YoY) with EPS of $3.79 beating consensus $3.69, plus $4B in new awards supporting $54B backlog. However, stock plunged 10.3% on margin compression across segments, negative free cash flow of $461M, and inventory concerns. Newport News revenue surged 19.3% with aircraft carrier CVN 79 builder's trials completion; Ingalls rose 13.8%. Company reaffirmed $500-600M FY26 free cash flow guidance as conservative.
Sector Peers
| Company | Price | Day | 1M | Fwd P/E | Beta | Mkt Cap |
|---|---|---|---|---|---|---|
| HIIHUNTINGTON | $300.49 | -5.37% | -3.6% | 15.6x | 0.29 | $12.5B |
| GEGENERAL | $346.55 | +14.84% | +5.5% | 34.8x | 1.35 | $315.3B |
| RTXRTX | $184.05 | +4.59% | +0.0% | 23.3x | 0.30 | $237.0B |
| BABOEING | $228.93 | +4.24% | -0.5% | 51.5x | 1.21 | $173.1B |
| LMTLOCKHEED | $532.70 | +1.90% | -1.0% | 16.3x | 0.10 | $120.5B |
| HWMHOWMET | $270.69 | +4.15% | +1.1% | 43.4x | 1.19 | $104.0B |
Key Fundamentals
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52-Week Range
Moving Averages
Price below 200d MA — bearish structure.