Huntington Ingalls Industries (HII) has reported a 5.23% decrease in revenues for the fourth quarter of 2024, with figures standing at $3.bn compared to $3.17bn in the same period of 2023.
This downturn was attributed to lower volume across all segments.
The company’s operating income also saw a drop to $110m with an operating margin of 3.7%, a contrast to the $312m and 9.8% reported in the previous year’s quarter.
Basic and diluted earnings per share fell to $3.15 from $6.90.
In the quarter, segment operating income declined primarily due to reduced performance at Newport News Shipbuilding, as well as favourable one-time factors in the previous year, including the sale of a beneficial court judgment at Ingalls Shipbuilding and a favourable insurance claim settlement in Mission Technologies.
Ingalls Shipbuilding experienced a revenue decrease of 8.0% to $736m in Q4, mainly due to reduced volumes in amphibious assault ships, though this was slightly offset by increased surface combatant volumes.
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By GlobalData
Newport News Shipbuilding’s revenues declined by 4.6% to $1.6bn, influenced by lower aircraft carrier refuelling and overhaul volumes, adjustments in submarine programmes, and reduced naval nuclear support services, despite a rise in Columbia-class submarine construction.
Mission Technologies reported a 4.3% revenue decrease to $713m in the fourth quarter, because of lower volumes in C5ISR contracts.
HII president and CEO Chris Kastner said: “We continue to make progress on ships put under contract pre-Covid, and are working diligently with our customers to put over $50bn of new work under contract.
“Mission Technologies continued its strong track record of top line growth and margin expansion and secured an impressive $12bn in total future contract value during 2024. We enter 2025 focused on our mission to deliver the world’s most powerful ships and all domain solutions in service of the nation.”
HII’s full-year revenues saw a marginal increase to $11.5bn, due to higher volumes at Mission Technologies and Ingalls Shipbuilding, which nearly balanced out the lower volumes at Newport News Shipbuilding.
The full-year operating income for 2024 was $535m with an operating margin of 4.6%, down from $781m and 6.8% in 2023.
The annual diluted earnings per share also decreased to $13.96 from $17.07.
In 2024, new contract awards totalled around $12.1bn, increasing the total backlog to approximately $48.7bn as of 31 December 2024.
Looking ahead, HII forecasts shipbuilding revenues for fiscal year 2025 to range between $8.9bn and $9.1bn.
The company anticipates Mission Technologies revenue to be between $2.9bn and $3.1bn, with operating margins between 4.0% and 4.5%, and EBITDA margins between 8.0% and 8.5%.
Free cash flow is expected to be between $300m and $500m for FY25.
This financial update follows HII’s acquisition in January 2025 of South Carolina-based modules manufacturer, W International’s assets.
