Huntington Ingalls Industries: First Look at Q2 Earnings

研报英文原文证据摘录

Huntington Ingalls Industries: First Look at Q2 Earnings

J P M O R G A N North America Equity Research

30 July 2026

Huntington Ingalls Industries Neutral

HII, HII US

First Look at Q2 Earnings Price (29 Jul 26):$280.40

Aerospace & Defense

Shipbuilding results overall were strong and above expectations, but the impact of Seth M. Seifman, CFA AC

the Navy contracts awarded last night should be a key focus area and so conference (1-212) 622-5597

call commentary will be an important driver of the reaction as well. Management seth.m.seifman@jpmorgan.com

raised shipbuilding sales and margin guidance and while 2H doesn’t look Alexander Ladd

dramatically different than our model, Q2 performance and the contracts should (1-212) 622-0077

provide momentum. Q2 FCF fell short but mgmt maintained the outlook for the alex.ladd@jpmorgan.com

year and Q4 likely includes significant incentives from the new contract. Given Rocco J Barbero

recent stock performance and low expectations, we think the results can be well (1-212) 622-8140

rocco.j.barbero@jpmorgan.com

received.

Jamie Simonson

• Strong 2Q for shipbuilding. Shipbuilding revenues increased 15.8% in the (1-212)jamie.simonson@jpmorgan.com270-1113

quarter, driven by better performance at both Ingalls and Newport News. With J.P. Morgan Securities LLC

regard to margin, Ingalls fell 10bps below our forecast as favorable contract

adjustments last year made a difficult comparison. Encouragingly, Newport

News margin was up 90bps y/y and 50bps above our estimate, with

management noting incentives on aircraft carriers. Margin performance in

Mission Technologies was also well ahead of our estimate, with revenue ~in-

line, though JV income drove the upside, with the year unchanged.

• Outlook suggests margin improvement in Q4. Management expects