Huntington Ingalls Industries (HII)
NYSEIndustrialsAerospace & DefenseSnapshot 2026-07-08
$289.28-0.06%
Close 2026-07-08 · 1-day change
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Huntington Ingalls Industries grows shipbuilding revenue near $9.8 billion in 2026. Mission Technologies aims for $3.0-$3.2 billion revenue this year. Profit margin guidance is steady at 5%. The company has a cheap valuation with a PE of 18.8 versus peers at 38.
Shipbuilding throughput growth is uncertain with mixed progress. Mission Technologies shows revenue growth but declining profitability. The recent sharp share price drop signals market concerns. Profit margins are low at 5%, limiting earnings power.
The stock trades about 20% below our fair value near $366. Analysts expect 5% revenue growth. Our view aligns with this but sees risk in margin and execution.
Breaks if: Free cash flow falls below $500M in FY26
Breaks if: Mission Technologies revenue falls below $3.0B in FY26
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Target Mission Technologies segment revenue between $3.0 billion and $3.2 billion for FY26.
Stated in 3 of last 3 quarters. Mission Technologies revenue was $748 million in 2026-Q1, indicating progress towards the FY26 target of $3.0-$3.2 billion. However, the segment's operating income decreased, showing limited progress in profitability.
“FY26 Mission Technologies revenue between $3.0 and $3.2 billion.”
“FY26 Mission Technologies revenue between $3.0 to $3.2 billion.”
“FY25 Mission Technologies revenue between $3.0 to $3.1 billion.”
Breaks if: Operating margin falls below 4.0% in FY26
Breaks if: Shipbuilding revenue falls below $9.7B in FY26
Focus on improving shipbuilding throughput by approximately 15% in 2026 to meet customer demand.
Stated in 2 of last 2 quarters. Shipbuilding revenue is guided between $9.7B and $9.9B for FY26. The company has shown progress with a 14% throughput increase in 2025, but the trajectory for 2026 remains to be fully demonstrated.
“Shipbuilding throughput has continued to improve with meaningful year over year growth.”
“Achieved ~14% shipbuilding throughput growth in 2025, targeting ~15% growth in 2026.”