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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________________ 
FORM 8-K
 _____________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
August 1, 2024
  _____________________________________
HUNTINGTON INGALLS INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
 _____________________________________
Delaware001-3491090-0607005
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)
4101 Washington Avenue
Newport NewsVirginia23607
(Address of principal executive offices) (Zip Code)
(757) 380-2000
(Registrant’s telephone number, including area code)
 (Former name or former address, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common StockHIINew York Stock Exchange
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐  
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02.Results of Operations and Financial Condition.
On August 1, 2024, Huntington Ingalls Industries, Inc. issued a press release announcing its financial results for the quarter ended June 30, 2024. A copy of the press release is furnished as Exhibit 99.1 hereto. Also furnished as Exhibit 99.2 is the corporation’s earnings presentation for the second quarter 2024 earnings release conference call.
 
Item 9.01.Financial Statements and Exhibits.
(d)Exhibits.
Exhibit No.  Description
99.1   
99.2   
104 Cover Page Interactive Data File (embedded within Inline XBRL document)




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
  HUNTINGTON INGALLS INDUSTRIES, INC.
August 1, 2024
  By: /s/ Thomas E. Stiehle
   Thomas E. Stiehle
   Executive Vice President and Chief Financial Officer


hii_logox2023xlogo.jpg
Exhibit 99.1

News Release
Contacts:
Brooke Hart (Media)        
brooke.hart@hii-co.com
202-264-7108
        
Christie Thomas (Investors)
christie.thomas@hii-co.com
757-380-2104            


HII Reports Second Quarter 2024 Results

•Record second quarter revenues of $3.0 billion, up 6.8% compared to second quarter 2023
•Operating income of $189 million, up 21.2% compared to second quarter 2023
•Net earnings of $173 million or $4.38 diluted earnings per share
•Delivered Virginia-class submarine New Jersey (SSN 796)
•Delivered amphibious transport dock Richard M. McCool Jr. (LPD 29)
•Company reaffirms previously issued shipbuilding guidance1
•Company raises the Mission Technologies revenue guidance range1
•Company reaffirms previously issued free cash flow2 outlook1

NEWPORT NEWS, Va. (August 1, 2024) - HII (NYSE: HII) reported second quarter 2024 revenues of $3.0 billion, up 6.8% from the second quarter of 2023, driven by growth across all segments.

Operating income in the second quarter of 2024 was $189 million and operating margin was 6.3%, compared to $156 million and 5.6%, respectively, in the second quarter of 2023. The increases were primarily driven by higher segment operating income2 compared to the prior year.

Segment operating income2 in the second quarter of 2024 was $203 million and segment operating margin2 was 6.8%, compared to $169 million and 6.1%, respectively, in the second quarter of 2023. The increases were driven by stronger results at Mission Technologies and Newport News Shipbuilding compared to the prior year, partially offset by Ingalls Shipbuilding results.

Net earnings in the quarter were $173 million, compared to $130 million in the second quarter of 2023. Diluted earnings per share in the quarter was $4.38, compared to $3.27 in the second quarter of 2023.

Net cash used in operating activities in the quarter was $9 million and free cash flow2 was negative $99 million, compared to cash provided by operating activities of $82 million and free cash flow2 of $14 million in the second quarter of 2023.

New contract awards in the second quarter of 2024 were $3.1 billion, bringing total backlog to approximately $48.5 billion as of June 30, 2024.

“Mission Technologies achieved another quarter of strong performance and robust growth, which has allowed us to raise our Mission Technologies revenue guidance range for the year,” said Chris Kastner, HII’s president and CEO. "Our shipyards achieved critical milestones during the quarter, delivering Virginia-class submarine SSN 796 New Jersey and LPD 29 Richard M. McCool Jr. We are pleased to reiterate our full year shipbuilding guidance and see meaningful opportunities for shipbuilding operating margin2 improvement in the second half of the year."1


1The financial outlook, expectations and other forward looking statements provided by the company for 2024 and beyond reflect the company's judgment based on information available at the time of this release.
2Non-GAAP measures. See Exhibit B for definitions and reconciliations.










HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 1 of 11

Results of Operations
Three Months EndedSix Months Ended
June 30June 30
($ in millions, except per share amounts)20242023$ Change% Change20242023$ Change% Change
Sales and service revenues$2,977 $2,787 $190 6.8 %$5,782 $5,461 $321 5.9 %
Operating income189 156 33 21.2 %343 297 46 15.5 %
  Operating margin %6.3 %5.6 %75 bps5.9 %5.4 %49 bps
Segment operating income1
203 169 34 20.1 %373 325 48 14.8 %
  Segment operating margin %1
6.8 %6.1 %76 bps6.5 %6.0 %50 bps
Net earnings173 130 43 33.1 %326 259 67 25.9 %
Diluted earnings per share$4.38 $3.27 $1.11 33.9 %$8.25 $6.49 $1.76 27.1 %
1 Non-GAAP measures that exclude non-segment factors affecting operating income. See Exhibit B for definitions and reconciliations.

Segment Operating Results
Ingalls Shipbuilding
Three Months EndedSix Months Ended
June 30June 30
($ in millions)20242023$ Change% Change20242023$ Change% Change
Revenues$712 $664 $48 7.2 %$1,367 $1,241 $126 10.2 %
Segment operating income1
56 65 (9)(13.8)%116 120 (4)(3.3)%
Segment operating margin %1
7.9 %9.8 %(192) bps8.5 %9.7 %(118) bps
1 Non-GAAP measures. See Exhibit B for definitions and reconciliations.

Ingalls Shipbuilding revenues for the second quarter of 2024 were $712 million, an increase of $48 million, or 7.2%, from the same period in 2023, primarily driven by higher volumes in amphibious assault ships and surface combatants, partially offset by lower volumes in the Legend-class National Security Cutter program.

Ingalls Shipbuilding segment operating income1 for the second quarter of 2024 was $56 million, a decrease of $9 million from the same period in 2023. Segment operating margin1 in the second quarter of 2024 was 7.9%, compared to 9.8% in the same period last year. The decreases were primarily driven by lower risk retirement on surface combatants, partially offset by a delivery contract incentive on Richard M. McCool Jr. (LPD 29).

Key Ingalls Shipbuilding milestones for the quarter:
•Delivered amphibious transport dock Richard M. McCool Jr. (LPD 29)




















1Non-GAAP measures. See Exhibit B for definitions and reconciliations.









HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 2 of 11


Newport News Shipbuilding
Three Months EndedSix Months Ended
June 30June 30
($ in millions)20242023$ Change% Change20242023$ Change% Change
Revenues$1,535 $1,509 $26 1.7 %$2,969 $3,015 $(46)(1.5)%
Segment operating income1
111 95 16 16.8 %193 179 14 7.8 %
Segment operating margin %1
7.2 %6.3 %94 bps6.5 %5.9 %56 bps
1 Non-GAAP measures. See Exhibit B for definitions and reconciliations.

Newport News Shipbuilding revenues for the second quarter of 2024 were $1.5 billion, an increase of $26 million, or 1.7%, from the same period in 2023. The increase was driven primarily by higher volumes in the Columbia-class submarine program.

Newport News Shipbuilding segment operating income1 for the second quarter of 2024 was $111 million, an increase of $16 million from the same period in 2023. Segment operating margin1 in the second quarter of 2024 was 7.2% compared to 6.3% in the same period last year. The increases were primarily driven by contract adjustments, incentives and volume on the Refueling and Complex Overhaul ("RCOH") program, partially offset by lower performance on aircraft carrier construction and the Virginia-class submarine program.

Key Newport News Shipbuilding milestones for the quarter:
•Delivered Virginia-class submarine New Jersey (SSN 796)
•Completed dry dock work for aircraft carrier USS John C. Stennis (CVN 74) RCOH

Mission Technologies

Three Months EndedSix Months Ended
June 30June 30
($ in millions)20242023$ Change% Change20242023$ Change% Change
Revenues$765 $645 $120 18.6 %$1,515 $1,269 $246 19.4 %
Segment operating income1
36 9 27 300.0 %64 26 38 146.2 %
Segment operating margin %1
4.7 %1.4 %331 bps4.2 %2.0 %218 bps
1 Non-GAAP measures. See Exhibit B for definitions and reconciliations.

Mission Technologies revenues for the second quarter of 2024 were $765 million, an increase of $120 million, or
18.6%, from the same period in 2023. The increase was primarily due to higher volumes in C5ISR and cyber, electronic warfare & space.

Mission Technologies segment operating income1 for the second quarter of 2024 was $36 million, compared to $9 million in the second quarter of 2023. Segment operating margin1 in the second quarter of 2024 was 4.7%, compared to 1.4% in the same period last year. The increases were primarily driven by the higher volumes described above, a $6 million loss in 2023 on the sale of our interest in an unconsolidated ship repair and specialty fabrication joint venture, and stronger performance in fleet sustainment.

Mission Technologies results included approximately $25 million of amortization of purchased intangible assets in the second quarter of 2024, compared to approximately $28 million in the same period last year.

Mission Technologies EBITDA margin1 in the second quarter of 2024 was 8.5%, an increase from 6.7% in the second quarter of 2023.

Key Mission Technologies milestones for the quarter:
•Announced strategic executive leadership appointments to advance AUKUS goals in Australia
•Announced the sale of three REMUS 100s and five REMUS 300s to the U.K. Royal Navy
•Awarded $65 million to perform high quality specialized research and analysis for the Deputy Director of Joint Warfighting Development
1Non-GAAP measures. See Exhibit B for definitions and reconciliations











HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 3 of 11


HII Financial Outlook1
•Reaffirming FY24 outlook for shipbuilding revenue2 and operating margin2
•Raising FY24 Mission Technologies revenue guidance range
•Reaffirming FY24 outlook for Mission Technologies operating margin2
•Updating interest expense outlook
•Reaffirming five-year (2024-2028) free cash flow2,3 outlook of $3.6B
FY24 Outlook1
Shipbuilding Revenue2
$8.8B - $9.1B
Shipbuilding Operating Margin2
7.6% - 7.8%
Mission Technologies Revenue
$2.75B - $2.8B
Mission Technologies Segment Operating Margin2
3.0% - 3.5%
Mission Technologies EBITDA Margin2
8.0% - 8.5%
Operating FAS/CAS Adjustment($63M)
Non-current State Income Tax Benefit/Expense4
~$0M
Interest Expense($95M)
Non-operating Retirement Benefit$178M
Effective Tax Rate~21%
Depreciation & Amortization~$350M
Capital Expenditures~5.3%
of Sales
Free Cash Flow2,3
$600M - $700M

1The financial outlook, expectations and other forward-looking statements provided by the company for 2024 and beyond reflect the company's judgment based on the information available at the time of this release.
2Non-GAAP measures. See Exhibit B for definitions. In reliance upon Item 10(e)(1)(i)(B) of Regulation S-K, reconciliations of forward–looking GAAP and non–GAAP measures are not provided because of the unreasonable effort associated with providing such reconciliations due to the variability in the occurrence and the amounts of certain components of GAAP and non-GAAP measures. For the same reasons, we are unable to address the significance of the unavailable information, which could be material to future results.
3Outlook is based on current tax law and assumes the provisions requiring capitalization of R&D expenditures for tax purposes are not deferred or repealed.
4Outlook is based on current tax law. Repeal or deferral of provisions requiring capitalization of R&D expenditures would result in elevated non-current state income tax expense.













HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 4 of 11


About HII

HII is a global, all-domain defense provider. HII’s mission is to deliver the world’s most powerful ships and all-domain solutions in service of the nation, creating the advantage for our customers to protect peace and freedom around the world.

As the nation’s largest military shipbuilder, and with a more than 135-year history of advancing U.S. national security, HII delivers critical capabilities extending from ships to unmanned systems, cyber, ISR, AI/ML and synthetic training. Headquartered in Virginia, HII’s workforce is 44,000 strong. For more information, please visit www.HII.com.

Conference Call Information

HII will webcast its earnings conference call at 9 a.m. Eastern time today. A live audio broadcast of the conference call and supplemental presentation will be available on the investor relations page of the company’s website: www.HII.com. A telephone replay of the conference call will be available from noon today through Thursday, August 8th by calling (866) 813-9403 or (929) 458-6194 and using access code 671690.

Cautionary Statement Regarding Forward-Looking Statements and Projections
Statements in this earnings release, other than statements of historical fact, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue," and similar words or phrases or the negative of these words or phrases. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable when made, we cannot guarantee future results, levels of activity, performance, or achievements. There are a number of important factors that could cause our actual results to differ materially from the results anticipated by our forward-looking statements, which include, but are not limited to: changes in government and customer priorities and requirements (including government budgetary constraints, shifts in defense spending, and changes in customer short-range and long-range plans); our ability to estimate our future contract costs, including cost increases due to inflation, and perform our contracts effectively; changes in procurement processes and government regulations and our ability to comply with such requirements; our ability to deliver our products and services at an affordable life cycle cost and compete within our markets; natural and environmental disasters and political instability; our ability to execute our strategic plan, including with respect to share repurchases, dividends, capital expenditures and strategic acquisitions; adverse economic conditions in the United States and globally; health epidemics, pandemics and similar outbreaks; our ability to attract, train and retain a qualified workforce; disruptions impacting global supply, including those resulting from the ongoing conflict between Russia and Ukraine and in the Middle East; changes in key estimates and assumptions regarding our pension and retiree health care costs; security threats, including cyber security threats, and related disruptions; and other risk factors discussed in our other filings with the U.S. Securities and Exchange Commission ("SEC"). Additional factors include those described in our Annual Report on Form 10-K for the year ended December 31, 2023, including under the captions "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Business," in our subsequent quarterly reports on Form 10-Q, including under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," and in our subsequent filings with the SEC. There may be other risks and uncertainties that we are unable to predict at this time or that we currently do not expect to have a material adverse effect on our business, and we undertake no obligation to update or revise any forward-looking statements. You should not place undue reliance on any forward-looking statements that we may make. This release also contains non-GAAP financial measures and includes a GAAP reconciliation of these financial measures. Non-GAAP financial measures should not be construed as being more important than comparable GAAP measures.









HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 5 of 11


Exhibit A: Financial Statements

HUNTINGTON INGALLS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)
Three Months Ended June 30Six Months Ended June 30
(in millions, except per share amounts)2024202320242023
Sales and service revenues
Product sales$1,926 $1,879 $3,713 $3,708 
Service revenues1,051 908 2,069 1,753 
Sales and service revenues2,977 2,787 5,782 5,461 
Cost of sales and service revenues
Cost of product sales1,627 1,602 3,164 3,170 
Cost of service revenues918 796 1,811 1,552 
Income from operating investments, net11 4 23 16 
Other income and gains, net1 1 — — 
General and administrative expenses255 238 487 458 
Operating income189 156 343 297 
Other income (expense)
Interest expense(24)(24)(45)(48)
Non-operating retirement benefit46 37 90 74 
Other, net5 — 12 9 
Earnings before income taxes216 169 400 332 
Federal and foreign income tax expense43 39 74 73 
Net earnings$173 $130 $326 $259 
Basic earnings per share$4.38 $3.27 $8.25 $6.49 
Weighted-average common shares outstanding39.5 39.8 39.5 39.9 
Diluted earnings per share$4.38 $3.27 $8.25 $6.49 
Weighted-average diluted shares outstanding39.5 39.8 39.5 39.9 
Dividends declared per share$1.30 $1.24 $2.60 $2.48 
Net earnings from above$173 $130 $326 $259 
Other comprehensive income (loss)
Change in unamortized benefit plan costs4 5 9 9 
Tax expense for items of other comprehensive income— (1)(2)(2)
Other comprehensive income, net of tax4 4 7 7 
Comprehensive income$177 $134 $333 $266 










HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 6 of 11


HUNTINGTON INGALLS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
($ in millions)June 30,
2024		December 31, 2023
Assets
Current Assets
Cash and cash equivalents$11 $430 
Accounts receivable, net of allowance for expected credit losses of $2 million as of 2024 and $8 million as of 2023
706 461 
Contract assets1,694 1,537 
Inventoried costs198 186 
Income taxes receivable197 183 
Prepaid expenses and other current assets106 83 
Total current assets2,912 2,880 
Property, Plant, and Equipment, net of accumulated depreciation of $2,494 million as of 2024 and $2,467 million as of 2023
3,342 3,296 
Operating lease assets259 262 
Goodwill2,618 2,618 
Other intangible assets, net of accumulated amortization of $1,063 million as of 2024 and $1,009 million as of 2023
837 891 
Pension plan assets952 888 
Miscellaneous other assets390 380 
Total assets$11,310 $11,215 
Liabilities and Stockholders' Equity
Current Liabilities
Trade accounts payable652 554 
Accrued employees’ compensation354 382 
Short-term debt and current portion of long-term debt942 231 
Current portion of postretirement plan liabilities129 129 
Current portion of workers’ compensation liabilities225 224 
Contract liabilities886 1,063 
Other current liabilities375 449 
Total current liabilities3,563 3,032 
Long-term debt1,715 2,214 
Pension plan liabilities216 212 
Other postretirement plan liabilities235 241 
Workers’ compensation liabilities451 449 
Long-term operating lease liabilities224 228 
Deferred tax liabilities341 367 
Other long-term liabilities387 379 
Total liabilities7,132 7,122 
Commitments and Contingencies
Stockholders’ Equity
Common stock, $0.01 par value; 150,000,000 shares authorized; 53,710,514 shares issued and 39,260,208 shares outstanding as of 2024, and 53,595,748 shares issued and 39,618,880 shares outstanding as of 2023
1 1 
Additional paid-in capital2,029 2,045 
Retained earnings4,977 4,755 
Treasury stock(2,414)(2,286)
Accumulated other comprehensive loss(415)(422)
Total stockholders’ equity4,178 4,093 
Total liabilities and stockholders’ equity$11,310 $11,215 













HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 7 of 11


HUNTINGTON INGALLS INDUSTRIES, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 Six Months Ended June 30
($ in millions)20242023
Operating Activities
Net earnings$326 $259 
Adjustments to reconcile net cash provided by (used in) operating activities:
Depreciation106 110 
Amortization of purchased intangibles54 64 
Other non-cash transactions, net2 14 
Stock-based compensation7 18 
Deferred income taxes(28)(62)
Gain on investments in marketable securities(11)(12)
Change in
Accounts receivable(239)(149)
Contract assets(157)(27)
Inventoried costs(12)(7)
Prepaid expenses and other assets(38)(42)
Accounts payable and accruals(164)(57)
Retiree benefits(57)(36)
Net cash provided by (used in) operating activities(211)73 
Investing Activities:
Capital expenditures
Capital expenditure additions(165)(111)
Grant proceeds for capital expenditures3 3 
Investment in affiliates— (24)
Proceeds from disposition of equity method investments— 61 
Other investing activities, net— 1 
Net cash used in investing activities(162)(70)
Financing Activities:
Repayment of long-term debt(229)(30)
Proceeds from revolving credit facility borrowings42 — 
Repayment of revolving credit facility borrowings(42)— 
Net borrowings on commercial paper440 — 
Dividends paid(102)(99)
Repurchases of common stock(127)(16)
Employee taxes on certain share-based payment arrangements(25)(12)
Other financing activities, net(3)— 
Net cash used in financing activities(46)(157)
Change in cash and cash equivalents(419)(154)
Cash and cash equivalents, beginning of period430 467 
Cash and cash equivalents, end of period$11 $313 
Supplemental Cash Flow Disclosure
Cash paid for income taxes (net of refunds)$157 $172 
Cash paid for interest$51 $51 
Non-Cash Investing and Financing Activities
Capital expenditures accrued in accounts payable$9 $4 











HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 8 of 11



Exhibit B: Non-GAAP Measures Definitions & Reconciliations

We make reference to “segment operating income,” “segment operating margin,” “shipbuilding revenue,” “shipbuilding operating margin,” "Mission Technologies EBITDA," “Mission Technologies EBITDA margin” and “free cash flow.”

We internally manage our operations by reference to segment operating income and segment operating margin, which are not recognized measures under GAAP. When analyzing our operating performance, investors should use segment operating income and segment operating margin in addition to, and not as alternatives for, operating income and operating margin or any other performance measure presented in accordance with GAAP. They are measures that we use to evaluate our core operating performance. We believe that segment operating income and segment operating margin reflect additional ways of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. We believe these measures are used by investors and are a useful indicator to measure our performance. Because not all companies use identical calculations, our presentation of segment operating income and segment operating margin may not be comparable to similarly titled measures of other companies.

Shipbuilding revenue, shipbuilding operating margin, Mission Technologies EBITDA and Mission Technologies EBITDA margin are not measures recognized under GAAP. They are measures that we use to evaluate our core operating performance. When analyzing our operating performance, investors should use shipbuilding revenue, shipbuilding operating margin, Mission Technologies EBITDA and Mission Technologies EBITDA margin in addition to, and not as alternatives for, operating income and operating margin or any other performance measure presented in accordance with GAAP. We believe that shipbuilding revenue, shipbuilding operating margin, Mission Technologies EBITDA and Mission Technologies EBITDA margin reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. We believe these measures are used by investors and are a useful indicator to measure our performance. Because not all companies use identical calculations, our presentation of shipbuilding revenue, shipbuilding operating margin, Mission Technologies EBITDA and Mission Technologies EBITDA margin may not be comparable to similarly titled measures of other companies.

Free cash flow is not a measure recognized under GAAP. Free cash flow has limitations as an analytical tool and should not be considered in isolation from, or as a substitute for net earnings as a measure of our performance or net cash provided or used by operating activities as a measure of our liquidity. We believe free cash flow is an important measure for our investors because it provides them insight into our current and period-to-period performance and our ability to generate cash from continuing operations. We also use free cash flow as a key operating metric in assessing the performance of our business and as a key performance measure in evaluating management performance and determining incentive compensation. Free cash flow may not be comparable to similarly titled measures of other companies.

In reliance upon Item 10(e)(1)(i)(B) of Regulation S-K, reconciliations of forward-looking GAAP and non-GAAP measures are not provided because of the unreasonable effort associated with providing such reconciliations due to the variability in the occurrence and the amounts of certain components of GAAP and non-GAAP measures. For the same reasons, we are unable to address the significance of the unavailable information, which could be material to future results.

Segment operating income is defined as operating income for the relevant segment(s) before the Operating FAS/CAS Adjustment and non-current state income taxes.

Segment operating margin is defined as segment operating income as a percentage of sales and service revenues.

Shipbuilding revenue is defined as the combined sales and service revenues from our Newport News Shipbuilding segment and Ingalls Shipbuilding segment.

Shipbuilding operating margin is defined as the combined segment operating income of our Newport News Shipbuilding segment and Ingalls Shipbuilding segment as a percentage of shipbuilding revenue.









HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 9 of 11



Mission Technologies EBITDA is defined as Mission Technologies segment operating income before interest expense, income taxes, depreciation, and amortization.

Mission Technologies EBITDA margin is defined as Mission Technologies EBITDA as a percentage of Mission Technologies revenues.

Free cash flow is defined as net cash provided by (used in) operating activities less capital expenditures net of related grant proceeds.

Operating FAS/CAS Adjustment is defined as the difference between the service cost component of our pension and other postretirement expense determined in accordance with GAAP (FAS) and our pension and other postretirement expense under U.S. Cost Accounting Standards (CAS).

Non-current state income taxes are defined as deferred state income taxes, which reflect the change in deferred state tax assets and liabilities and the tax expense or benefit associated with changes in state uncertain tax positions in the relevant period. These amounts are recorded within operating income. Current period state income tax expense is charged to contract costs and included in cost of sales and service revenues in segment operating income.

Certain of the financial measures we present are adjusted for the Operating FAS/CAS Adjustment and non-current state income taxes to reflect the company’s performance based upon the pension costs and state tax expense charged to our contracts under CAS. We use these adjusted measures as internal measures of operating performance and for performance-based compensation decisions.

Reconciliations of Segment Operating Income and Segment Operating Margin

Three Months EndedSix Months Ended
June 30June 30
($ in millions)2024202320242023
Ingalls revenues$712 $664 $1,367 $1,241 
Newport News revenues1,535 1,509 2,969 3,015 
Mission Technologies revenues765 645 1,515 1,269 
Intersegment eliminations(35)(31)(69)(64)
Sales and Service Revenues2,977 2,787 5,782 5,461 
Operating Income189 156 343 297 
Operating FAS/CAS Adjustment15 17 32 36 
Non-current state income taxes(1)(4)(2)(8)
Segment Operating Income203 169 373 325 
  As a percentage of sales and service revenues6.8 %6.1 %6.5 %6.0 %
Ingalls segment operating income56 65 116 120 
  As a percentage of Ingalls revenues7.9 %9.8 %8.5 %9.7 %
Newport News segment operating income111 95 193 179 
  As a percentage of Newport News revenues7.2 %6.3 %6.5 %5.9 %
Mission Technologies segment operating income36 9 64 26 
  As a percentage of Mission Technologies revenues4.7 %1.4 %4.2 %2.0 %









HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 10 of 11



Reconciliation of Free Cash Flow

Three Months EndedSix Months Ended
June 30June 30
($ in millions)2024202320242023
Net cash provided by (used in) operating activities$(9)$82 $(211)$73 
Less capital expenditures:
Capital expenditure additions (90)(68)(165)(111)
Grant proceeds for capital expenditures — — 3 3 
Free cash flow$(99)$14 $(373)$(35)




Reconciliation of Mission Technologies EBITDA and EBITDA Margin

Three Months EndedSix Months Ended
June 30June 30
($ in millions)2024202320242023
Mission Technologies sales and service revenues$765 $645 $1,515 $1,269 
Mission Technologies segment operating income$36 $9 $64 $26 
Mission Technologies depreciation expense2 3 5 6 
Mission Technologies amortization expense25 28 50 55 
Mission Technologies state tax expense2 3 4 6 
Mission Technologies EBITDA$65 $43 $123 $93 
Mission Technologies EBITDA margin8.5 %6.7 %8.1 %7.3 %









HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 11 of 11

HII Q2 2024 Earnings August 1, 2024 Chris Kastner President & CEO Tom Stiehle Executive Vice President & CFO Exhibit 99.2

 
Cautionary Statement Regarding Forward-looking Statements 2 Statements in this presentation, other than statements of historical fact, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue," and similar words or phrases or the negative of these words or phrases. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable when made, we cannot guarantee future results, levels of activity, performance, or achievements. There are a number of important factors that could cause our actual results to differ materially from the results anticipated by our forward-looking statements, which include, but are not limited to: changes in government and customer priorities and requirements (including government budgetary constraints, shifts in defense spending, and changes in customer short-range and long-range plans); our ability to estimate our future contract costs, including cost increases due to inflation, and perform our contracts effectively; changes in procurement processes and government regulations and our ability to comply with such requirements; our ability to deliver our products and services at an affordable life cycle cost and compete within our markets; natural and environmental disasters and political instability; our ability to execute our strategic plan, including with respect to share repurchases, dividends, capital expenditures and strategic acquisitions; adverse economic conditions in the United States and globally; health epidemics, pandemics and similar outbreaks; our ability to attract, train and retain a qualified workforce; disruptions impacting global supply, including those resulting from the ongoing conflict between Russia and Ukraine and in the Middle East; changes in key estimates and assumptions regarding our pension and retiree health care costs; security threats, including cyber security threats, and related disruptions; and other risk factors discussed in our other filings with the U.S. Securities and Exchange Commission ("SEC"). Additional factors include those described in our Annual Report on Form 10-K for the year ended December 31, 2023, including under the captions "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Business," in our subsequent quarterly reports on Form 10-Q, including under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," and in our subsequent filings with the SEC. There may be other risks and uncertainties that we are unable to predict at this time or that we currently do not expect to have a material adverse effect on our business, and we undertake no obligation to update or revise any forward-looking statements. You should not place undue reliance on any forward-looking statements that we may make. This release also contains non-GAAP financial measures and includes a GAAP reconciliation of these financial measures. Non-GAAP financial measures should not be construed as being more important than comparable GAAP measures.

 
Q2 2024 Financial Highlights 3 • Record second quarter revenues of $3.0B, up 6.8% YoY – Mission Technologies revenues $765M, up 18.6% YoY • Operating Income of $189M, up 21.2% YoY • Net Income of $173M, up 33.1% YoY • Diluted EPS of $4.38, up 33.9% YoY • Quarter-end backlog of $48.5B

 
HII Q2 2024 Operational Highlights 4 Ingalls Shipbuilding Highlights • Delivered Richard M. McCool Jr. (LPD 29) Newport News Shipbuilding Highlights • Delivered Virginia-class submarine New Jersey (SSN 796) • Completed dry dock work for aircraft carrier USS John C. Stennis (CVN 74) RCOH Mission Technologies Highlights • Announced strategic executive leadership appointments to advance AUKUS goals in Australia • Announced the sale of three REMUS 100s and five REMUS 300s to the U.K. Royal Navy • Awarded $65 million to perform high quality specialized research and analysis for the Deputy Director of Joint Warfighting Development

 
5 Upcoming Shipbuilding Milestones1 2024 o Ingalls  Complete sea trials and deliver LPD 29 (Richard M. McCool Jr.)  Launch LPD 30 (Harrisburg) o Newport News  Re-deliver SSN 794 (USS Montana)  Deliver SSN 796 (New Jersey)  Float off SSN 798 (Massachusetts)  Float off SSN 800 (Arkansas)  Ship final module of SSN 801 (Utah) 1 All milestones are based upon current expectations and subject to change based upon future events. List is alphabetical by program designation. 2025 o Ingalls  Deliver DDG 128 (Ted Stevens)  Launch DDG 129 (Jeremiah Denton)*  DDG 1000 (USS Zumwalt) Sea Trials  Deliver LHA 8 (Bougainville) ** o Newport News  Deliver CVN 79 (Kennedy)  Deliver SSN 798 (Massachusetts)*  Deliver SSN 800 (Arkansas) * Milestone moved from 2024 to 2025 ** Milestone moved from 2025 to 2026

 
$156 $189 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 Q223 Q224 6 HII Q2 2024 Consolidated Results • Revenue grew $190M or 6.8% YoY driven by growth across all segments CONSOLIDATED REVENUE ($M) OPERATING INCOME ($M) & MARGIN % 5.6% • Operating income increased $33M YoY driven by Mission Technologies and Newport News Shipbuilding 5.6% 6.3% $2,787 $2,977 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 Q223 Q224

 
7 HII Q2 2024 Segment Results YoY Newport News Shipbuilding Ingalls Shipbuilding Mission Technologies 1 Non-GAAP measures. See appendix for definitions and reconciliations. REVENUE ($M) SEGMENT OPERATING INCOME1 ($M) & MARGIN %1 REVENUE ($M) REVENUE ($M) SEGMENT OPERATING INCOME1 ($M) & MARGIN %1 SEGMENT OPERATING INCOME1 ($M) & MARGIN %1 4.2% Revenue + Amphibious assault ships and surface combatants _volume - National security cutter volume Operating Income - Lower surface combatant risk retirement + LPD 29 delivery incentive Revenue + Columbia-class submarine volume Operating Income + Contract adjustments, incentives and volume on the RCOH program - Carrier construction and VCS program Revenue + C5ISR and Cyber, Electronic Warfare & Space (CEWS) volume Operating Income + Volume increases stated above, fleet sustainment performance and prior year loss $664 $712 $0 $200 $400 $600 $800 Q223 Q224 $65 $56 $0 $20 $40 $60 $80 Q223 Q224 $1,509 $1,535 $0 $500 $1,000 $1,500 $2,000 Q223 Q224 $95 $111 $0 $20 $40 $60 $80 $100 $120 Q223 Q224 $645 $765 $0 $200 $400 $600 $800 $1,000 Q223 Q224 $9 $36 $0 $10 $20 $30 $40 Q223 Q224 9.8% 7.9% 6.3% 7.2% 1.4% 4.7% 7% 19% 2% 17% (14%) 300%

 
$82 ($9) ($68) ($90) $14 ($99) ($125) ($100) ($75) ($50) ($25) $0 $25 $50 $75 $100 Cash from Ops. CAPEX Free Cash Flow 8 HII Q2 2024 Capital Deployment CASH FLOW USE ($M) SHAREHOLDER DISTRIBUTIONS ($M) • Cash balance of $11 million and liquidity of ~$1.1 billion at quarter end • Net capital expenditures of 3.0% of revenues in Q2 • Cash contributions to pension and other postretirement benefit plans of $14 million in Q2 • Distributions to shareholders of $116 million in Q2 • Paid dividends totaling $51 million • Repurchased 250 thousand shares at an aggregate cost of $65 million 1 Non-GAAP measure. See appendix for definition and reconciliation. 1 Q2 23 Q2 24 $49 $51 $9 $62 $0 $20 $40 $60 $80 $100 $120 $140 Q2 23 Q2 24 Dividends Share Repurchases (at cost) TOTAL $57 TOTAL $116 $50 $7 $65 $51

 
9 HII Financial Outlook1 FY24 Outlook1 Shipbuilding Revenue2 $8.8B - $9.1B Shipbuilding Operating Margin2 7.6% - 7.8% Mission Technologies Revenue $2.75B - $2.8B Mission Technologies Segment Operating Margin2 3.0% - 3.5% Mission Technologies EBITDA Margin2 8.0% - 8.5% Operating FAS/CAS Adjustment ($63M) Non-current State Income Tax Benefit/Expense3 ~$0M Interest Expense ($95M) Non-operating Retirement Benefit $178M Effective Tax Rate ~21% Depreciation & Amortization ~$350M Capital Expenditures ~5.3% of Sales Free Cash Flow2,4 $600M - $700M 1 The financial outlook, expectations and other forward looking statements provided by the company for 2024 and beyond reflect the company's judgment based on the information available at the time of this presentation. 2 Non-GAAP measures. See appendix for definitions. In reliance upon Item 10(e)(1)(i)(B) of Regulation S-K, reconciliations of forward–looking GAAP and non–GAAP measures are not provided because of the unreasonable effort associated with providing such reconciliations due to the variability in the occurrence and the amounts of certain components of GAAP and non-GAAP measures. For the same reasons, we are unable to address the significance of the unavailable information, which could be material to future results. 3 Outlook is based on current tax law. Repeal or deferral of requirement to capitalize R&D expenditures would result in elevated non-current state income tax expense. 4 Outlook is based on current tax law and assumes the requirement to capitalize R&D expenditures for tax purposes is not deferred or repealed. • Reaffirming FY24 shipbuilding financial guidance • Raising Mission Technologies revenue guidance range • Revising interest expense outlook • Reaffirming 5 year (FY24-FY28) Free Cash Flow2,4 outlook of $3.6B Q3 2024 Financial Outlook • Shipbuilding revenue2 of ~$2.2B and shipbuilding operating margin2 of ~7.8% • Mission Technologies revenue of ~$650M and Mission Technologies segment operating margin2 of ~2.5% • Free cash flow2,4 of ~$0

 
Investment Thesis Largest U.S. military seapower provider with leading all-domain, integrated defense technologies Historic and significant market tailwinds providing highly visible growth Margin expansion opportunity driven by operational execution and delivering on commitments Projected free cash flow growth enabling disciplined capital allocation and increasing total shareholder value 10

 
Appendix

 
12 Non-GAAP Information We make reference to “free cash flow,” “segment operating income,” “segment operating margin,” “shipbuilding revenue,” “shipbuilding operating margin,” “Mission Technologies EBITDA” and “Mission Technologies EBITDA margin.” We internally manage our operations by reference to segment operating income and segment operating margin, which are not recognized measures under GAAP. When analyzing our operating performance, investors should use segment operating income and segment operating margin in addition to, and not as alternatives for, operating income and operating margin or any other performance measure presented in accordance with GAAP. They are measures that we use to evaluate our core operating performance. We believe that segment operating income and segment operating margin reflect additional ways of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. We believe these measures are used by investors and are a useful indicator to measure our performance. Because not all companies use identical calculations, our presentation of segment operating income and segment operating margin may not be comparable to similarly titled measures of other companies. Shipbuilding revenue, shipbuilding operating margin, Mission Technologies EBITDA and Mission Technologies EBITDA margin are not measures recognized under GAAP. They are measures that we use to evaluate our core operating performance. We believe that shipbuilding revenue, shipbuilding operating margin, Mission Technologies EBITDA and Mission Technologies EBITDA margin reflect additional ways of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. When analyzing our operating performance, investors should use shipbuilding revenue, shipbuilding operating margin, Mission Technologies EBITDA and Mission Technologies EBITDA margin in addition to, and not as alternatives for, operating income and operating margin or any other performance measure presented in accordance with GAAP. We believe these measures are used by investors and are a useful indicator to measure our performance. Because not all companies use identical calculations, our presentation of shipbuilding revenue, shipbuilding operating margin, Mission Technologies EBITDA and Mission Technologies EBITDA margin may not be comparable to similarly titled measures of other companies. Free cash flow is not a measure recognized under GAAP. Free cash flow has limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, net earnings as a measure of our performance or net cash provided or used by operating activities as a measure of our liquidity. We believe free cash flow is an important measure for our investors because it provides them insight into our current and period-to-period performance and our ability to generate cash from continuing operations. We also use free cash flow as a key operating metric in assessing the performance of our business and as a key performance measure in evaluating management performance and determining incentive compensation. Free cash flow may not be comparable to similarly titled measures of other companies. In reliance upon Item 10(e)(1)(i)(B) of Regulation S-K, reconciliations of forward-looking GAAP and non-GAAP measures are not provided because of the unreasonable effort associated with providing such reconciliations due to the variability in the occurrence and the amounts of certain components of GAAP and non-GAAP measures. For the same reasons, we are unable to address the significance of the unavailable information, which could be material to future results.

 
13 Non-GAAP Measures Definitions Segment operating income is defined as operating income for the relevant segment(s) before the Operating FAS/CAS Adjustment and non-current state income taxes. Segment operating margin is defined as segment operating income as a percentage of sales and service revenues. Shipbuilding revenue is defined as the combined sales and service revenues from our Newport News Shipbuilding segment and Ingalls Shipbuilding segment. Shipbuilding operating margin is defined as the combined segment operating income of our Newport News Shipbuilding segment and Ingalls Shipbuilding segment as a percentage of shipbuilding revenue. Mission Technologies EBITDA is defined as Mission Technologies segment operating income before interest expense, income taxes, depreciation and amortization. Mission Technologies EBITDA margin is defined as Mission Technologies EBITDA as a percentage of Mission Technologies revenues. Free cash flow is defined as net cash provided by (used in) operating activities less capital expenditures net of related grant proceeds. Operating FAS/CAS Adjustment is defined as the difference between the service cost component of our pension and other postretirement expense determined in accordance with GAAP (FAS) and our pension and other postretirement expense under U.S. Cost Accounting Standards (CAS). Non-current state income taxes are defined as deferred state income taxes, which reflect the change in deferred state tax assets and liabilities and the tax expense or benefit associated with changes in state uncertain tax positions in the relevant period. These amounts are recorded within operating income. Current period state income tax expense is charged to contract costs and included in cost of sales and service revenues in segment operating income. Certain of the financial measures we present are adjusted for the Operating FAS/CAS Adjustment and non-current state income taxes to reflect the company’s performance based upon the pension costs and state tax expense charged to our contracts under CAS. We use these adjusted measures as internal measures of operating performance and for performance-based compensation decisions.

 
14 Non-GAAP Reconciliations Segment Operating Income & Segment Operating Margin ($ in millions) 2024 2023 2024 2023 Ingalls revenues 712 664 1,367 1,241 Newport News revenues 1,535 1,509 2,969 3,015 Mission Technologies revenues 765 645 1,515 1,269 Intersegment eliminations (35) (31) (69) (64) Sales and Service Revenues 2,977 2,787 5,782 5,461 Operating Income 189 156 343 297 Operating FAS/CAS Adjustment 15 17 32 36 Non-current state income taxes (1) (4) (2) (8) Segment Operating Income 203 169 373 325 As a percentage of sales and service revenues 6.8 % 6.1 % 6.5 % 6.0 % Ingalls segment operating income 56 65 116 120 As a percentage of Ingalls revenues 7.9 % 9.8 % 8.5 % 9.7 % Newport News segment operating income 111 95 193 179 As a percentage of Newport News revenues 7.2 % 6.3 % 6.5 % 5.9 % Mission Technologies segment operating income 36 9 64 26 As a percentage of Mission Technologies revenues 4.7 % 1.4 % 4.2 % 2.0 % Three Months Ended June 30 June 30 Six Months Ended

 
15 Non-GAAP Reconciliations Shipbuilding Revenues & Operating Margin ($ in millions) 2024 2023 2024 2023 Sales and service revenues 2,977 2,787 5,782 5,461 Mission Technologies (765) (645) (1,515) (1,269) Intersegment eliminations 35 31 69 64 Shipbuilding Revenues 2,247 2,173 4,336 4,256 Operating Income 189 156 343 297 Operating FAS/CAS Adjustment 15 17 32 36 Non-current state income taxes (1) (4) (2) (8) Segment Operating Income 203 169 373 325 Mission Technologies (36) (9) (64) (26) Shipbuilding operating income 167 160 309 299 Shipbuilding operating margin 7.4 % 7.4 % 7.1 % 7.0 % Three Months Ended June 30 June 30 Six Months Ended

 
16 Non-GAAP Reconciliations Free Cash Flow ($ in millions) 2024 2023 2024 2023 Net cash provided by (used in) operating activities (9) 82 (211) 73 Less capital expenditures: Capital expenditure additions (90) (68) (165) (111) Grant proceeds for capital expenditures — — 3 3 Free cash flow (99) 14 (373) (35) Three Months Ended June 30 June 30 Six Months Ended

 
17 Non-GAAP Reconciliations Mission Technologies EBITDA & EBITDA Margin (in millions) 2024 2023 2024 2023 Mission Technologies sales and service revenues 765 645 1,515 1,269 Mission Technologies segment operating income 36 9 64 26 Mission Technologies depreciation expense 2 3 5 6 Mission Technologies amortization expense 25 28 50 55 Mission Technologies state tax expense 2 3 4 6 Mission Technologies EBITDA 65 43 123 93 Mission Technologies EBITDA margin 8.5 % 6.7 % 8.1 % 7.3 % June 30June 30 Three Months Ended Six Months Ended

 

 
v3.24.2.u1
DEI Document
Aug. 01, 2024
DEI [Abstract]  
Document Type 8-K
Document Period End Date Aug. 01, 2024
Entity Registrant Name HUNTINGTON INGALLS INDUSTRIES, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 001-34910
Entity Tax Identification Number 90-0607005
Entity Address, Address Line One 4101 Washington Avenue
Entity Address, City or Town Newport News
Entity Address, State or Province VA
Entity Address, Postal Zip Code 23607
City Area Code 757
Local Phone Number 380-2000
Title of 12(b) Security Common Stock
Trading Symbol HII
Security Exchange Name NYSE
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0001501585
Amendment Flag false
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