HII HII
Price Chart
Executive Summary
HII reported Q1 2026 EPS of $3.79, in line with the year-ago quarter and slightly above the $3.73 consensus estimate. Revenue grew 13.4% YoY to $3.1B, driven by strong shipbuilding volumes, but operating margin contracted 89 bps to 5.0% and free cash flow was deeply negative at -$461M. The company reaffirmed its FY26 guidance, including shipbuilding revenue of $9.7B-$9.9B and free cash flow of $500M-$600M, providing a steady outlook for a defense contractor with a $54B backlog.
Key Financial Metrics
Actionable Insight
HII's Q1 showed strong top-line growth but margin compression and negative free cash flow persist. The reaffirmed FY26 guidance and $54B backlog provide a stable floor. Monitor cash flow trajectory and margin improvement in subsequent quarters; the stock may trade range-bound until free cash flow turns positive.
Key Facts
- Q1 2026 EPS $3.79 vs consensus $3.73 (beat by 1.6%, effectively in line)
- Revenue $3.1B, up 13.4% YoY from $2.73B, driven by Newport News (+19.3%) and Ingalls (+13.8%)
- Operating margin fell to 5.0% from 5.9% YoY; segment operating margin fell to 5.6% from 6.3%
- Free cash flow was -$461M, essentially unchanged from -$462M in Q1 2025
- Backlog grew to $54.0B; new contract awards of $4.0B in the quarter
- FY26 guidance reaffirmed: shipbuilding revenue $9.7B-$9.9B, free cash flow $500M-$600M
- Net cash used in operating activities was $390M vs $395M in prior year
Financial Impact
Revenue beat by ~$80M (2.6%) vs consensus $3.02B; EPS in line; no guidance change
Risk Factors
- Operating margin contraction could persist if cost pressures continue
- Negative free cash flow in Q1 is typical but large negative balance limits financial flexibility
- Dependence on U.S. government appropriations and potential budget disruptions
Market Snapshot
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3287526 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
|
Jun 8, 2026
1d ago
|
Press Release
| $291.99 awaiting T+5 | awaiting T+5 | — | $292.26 (+0.09%) |
|
Jun 5, 2026
4d ago
|
144
| $294.89 awaiting T+5 | awaiting T+5 | — | $292.26 (−0.89%) |
|
May 15, 2026
25d ago
|
Press Release
| $325.75 $320.69 | ▼ −1.55% | ▼ −2.52% | $292.26 (−10.28%) |
|
May 5, 2026
5w ago
|
144
| $325.88 $333.29 | ▲ +2.27% | ▲ +0.29% | $292.26 (−10.32%) |
|
May 5, 2026
5w ago
|
8-K
| $325.88 $333.29 | ▲ +2.27% | ▲ +0.29% | $292.26 (−10.32%) |
|
May 5, 2026
5w ago
|
Press Release
| $325.88 $333.29 | ▲ +2.27% | ▲ +0.29% | $292.26 (−10.32%) |
|
Apr 28, 2026
6w ago
|
Press Release
| $361.94 $317.98 | ▼ −12.15% | ▼ −15.26% | $292.26 (−19.25%) |
|
Apr 20, 2026
7w ago
|
Press Release
| $391.98 $356.69 | ▼ −9.00% | ▼ −9.92% | $292.26 (−25.44%) |
|
Apr 14, 2026
8w ago
|
Press Release
| $395.98 $377.68 | ▼ −4.62% | ▼ −6.02% | $292.26 (−26.19%) |
|
Mar 20, 2026
11w ago
|
DEFA14A
| $396.29 $367.53 | ▼ −7.26% | ▼ −3.69% | $292.26 (−26.25%) |
US Market Status
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