HII's Q1 results were in line with expectations and guidance was reaffirmed, providing no catalyst. Monitor upcoming Navy contract awards (FF(X) frigate, battleship) and shipbuilding throughput progress for potential upside. The stock is likely to trade on macro defense spending sentiment rather than this quarter's results.
Price Chart
Executive Summary
HII reported Q1 2026 revenue of $3.1B (+13.4% YoY) and diluted EPS of $3.79, flat YoY. Operating income fell 3.7% to $155M and operating margin contracted 89bps to 5.0%, while segment operating income was essentially flat at $172M. The company reaffirmed its FY2026 guidance for shipbuilding revenue of $9.7B-$9.9B and free cash flow of $500M-$600M. The flat EPS and reaffirmed guidance provide no catalyst for a directional move.
Key Financial Metrics
Key Facts
- Q1 2026 revenue $3.1B, up 13.4% YoY from $2.734B
- Diluted EPS $3.79, flat vs Q1 2025
- Operating income $155M, down 3.7% from $161M; operating margin 5.0% vs 5.9%
- Segment operating income $172M, essentially flat vs $171M; segment margin 5.6% vs 6.3%
- New contract awards of $4.0B in Q1; total backlog $54.0B
- FY2026 guidance reaffirmed: shipbuilding revenue $9.7B-$9.9B, FCF $500M-$600M
- Free cash flow negative $461M in Q1, similar to negative $462M in Q1 2025
- Net cash used in operating activities $390M vs $395M in prior year
Financial Impact
Revenue grew 13.4% YoY but operating income declined 3.7% and EPS was flat. No material financial impact from this filing alone.
Risk Factors
- Operating margin compression (89bps YoY) despite strong revenue growth
- Negative free cash flow in Q1, though typical seasonality
- Mission Technologies segment operating income declined 12.5% YoY
- Dependence on U.S. government appropriations and defense budget
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001501585-26-000027 |
| Document: hii-20260505.htm | 0001501585-26-000027 |
| Document: hiiq12026earningspresent.htm | 0001501585-26-000027 |
| Document: 0001501585-26-000027-index-headers.html | 0001501585-26-000027 |
| Document: 0001501585-26-000027-index.html | 0001501585-26-000027 |
| Document: 0001501585-26-000027.txt | 0001501585-26-000027 |
| 8-K Data (Synthetic) | 0001501585-26-000027 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 11, 2026 21d ago | Press Release | $279.69 $272.86 | ▼ −2.44% | ▼ −2.22% | $268.61 (−3.96%) |
Aug 11, 2026 7w ago | Press Release | $327.85 $317.61 | ▼ −3.12% | ▼ −2.72% | $268.61 (−18.07%) |
Aug 11, 2026 7w ago | Insider Cluster | $327.85 $317.61 | ▼ −3.12% | ▼ −2.72% | $268.61 (−18.07%) |
Aug 10, 2026 7w ago | 144 | $330.81 $318.34 | ▼ −3.77% | ▼ −3.72% | $268.61 (−18.80%) |
Aug 5, 2026 8w ago | Press Release | $317.70 $326.80 | ▲ +2.86% | ▲ +2.51% | $268.61 (−15.45%) |
Aug 3, 2026 8w ago | Press Release | $325.95 $330.67 | ▲ +1.45% | ▼ −0.58% | $268.61 (−17.59%) |
Jul 30, 2026 9w ago | 8-K | $319.90 $321.76 | ▲ +0.58% | ▼ −3.04% | $268.61 (−16.03%) |
Jul 29, 2026 9w ago | Press Release | $319.90 $321.76 | ▲ +0.58% | ▼ −3.04% | $268.61 (−16.03%) |
Jul 10, 2026 12w ago | Press Release | $286.09 $271.05 | ▼ −5.26% | ▼ −4.70% | $268.61 (−6.11%) |
Jul 9, 2026 12w ago | GOVT-CONTRACT | $286.21 $271.05 | ▼ −5.30% | ▼ −5.17% | $268.61 (−6.15%) |
US Market Status
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