HII (NYSE: HII) reported Q2 2025 results with revenues of $3.1 billion, net earnings of $152 million, and new contract awards of $11.9 billion, leading to a record backlog of $56.9 billion. The company also entered a strategic partnership with C3 AI and reaffirmed FY25 segment revenue and operating margin guidance.
Q2 2025 revenues increased by 3.5% to $3.1 billion, driven by growth at Newport News Shipbuilding, Mission Technologies, and Ingalls Shipbuilding. Operating income was $163 million with a margin of 5.3%, down from $189 million and 6.3% in Q2 2024. Segment operating income was $172 million with a margin of 5.6%.
Net earnings in Q2 were $152 million, diluted earnings per share were $3.86. Net cash provided by operating activities was $823 million, and free cash flow was $730 million. New contract awards in Q2 totaled $11.9 billion, increasing the total backlog to $56.9 billion as of June 30, 2025.
Ingalls Shipbuilding’s Q2 2025 revenues were $724 million, up 1.7% from 2024, with a segment operating income of $54 million. Key milestones included christening the guided missile destroyer Jeremiah Denton and signing an MOU with HD Hyundai Heavy Industries.
Newport News Shipbuilding saw Q2 2025 revenues of $1.6 billion, up 4.4% from 2024, with a segment operating income of $82 million. Key milestones included awarded contract modifications and the launch of the Virginia-class submarine Arkansas.
Mission Technologies reported Q2 2025 revenues of $791 million, up 3.4% from 2024. The segment operating income was $36 million, with key milestones including delivering Lionfish small uncrewed undersea vehicles to the U.S. Navy. The EBITDA margin was 8.1%.
HII reaffirmed its FY25 segment revenue and operating margin guidance, including shipbuilding revenue between $8.9B to $9.1B, and free cash flow guidance increased to between $500M and $600M. The company continues to focus on delivering powerful ships and all-domain solutions for national security.
Read more at GlobeNewswire: HII Reports Second Quarter 2025 Results