0001501585false00015015852025-02-062025-02-06

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)
February 6, 2025
  _____________________________________
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 February 6, 2025, Huntington Ingalls Industries, Inc. issued a press release announcing its financial results for the quarter ended December 31, 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 fourth 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.
February 6, 2025
  By: /s/ Thomas E. Stiehle
   Thomas E. Stiehle
   Executive Vice President and Chief Financial Officer


hii_logox2023xicona.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 Fourth Quarter and Full Year 2024 Results

•Revenues were $3.0 billion in the fourth quarter, $11.5 billion in 2024
•Diluted earnings per share was $3.15 in the fourth quarter, $13.96 in 2024
•Backlog of $48.7 billion at year-end
•Achieved critical shipbuilding milestones in 2024, including delivery of Virginia-class submarine New Jersey (SSN 796) and amphibious transport dock Richard M. McCool Jr. (LPD 29)
•Mission Technologies secured awards with total contract value of over $12 billion in 2024

NEWPORT NEWS, Va. (February 6, 2025) - HII (NYSE:HII) reported fourth quarter 2024 revenues of $3.0 billion compared to $3.2 billion in the fourth quarter of 2023. The decrease was driven by lower volume at all segments compared to the prior year.

Segment operating income2 in the fourth quarter of 2024 was $103 million and segment operating margin was 3.4%, compared to $330 million and 10.4%, respectively, in the fourth quarter of 2023. The decreases were driven by lower performance at Newport News Shipbuilding, as well as prior year results that included the benefit of both the sale of a favorable court judgment in Ingalls Shipbuilding results and the favorable settlement of an insurance claim in Mission Technologies results.

Fourth quarter 2024 operating income of $110 million and operating margin of 3.7%, compared to $312 million and 9.8%, respectively, in the fourth quarter of 2023.

Diluted earnings per share in the quarter was $3.15, compared to $6.90 in the fourth quarter of 2023.

For the full year, revenues of $11.5 billion increased less than 1% over 2023, due to higher volumes at Mission Technologies and Ingalls Shipbuilding, largely offset by lower volumes at Newport News Shipbuilding.

Segment operating income2 in 2024 was $573 million and segment operating margin2 was 5.0%, compared to $842 million and 7.4%, respectively, in 2023, the decrease was primarily driven by lower performance at Newport News Shipbuilding, as well as prior year results that included the benefit of both the sale of a favorable court judgment in Ingalls Shipbuilding results and the favorable settlement of an insurance claim in Mission Technologies results.

Operating income in 2024 was $535 million and operating margin was 4.6%, compared to $781 million and 6.8%, respectively, in 2023.

Diluted earnings per share for the full year was $13.96, compared to $17.07 in 2023.

Net cash provided by operating activities in 2024 was $393 million and free cash flow2 was $40 million, compared to $970 million and $692 million, respectively, in 2023.

1The financial outlook, expectations and other forward looking statements provided by the company for 2025 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 and reconciliations.










HII
4101 Washington Ave. • Newport News, VA 23607
HII.com
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hii_logox2023xicona.jpg
Exhibit 99.1

News Release



New contract awards in 2024 were approximately $12.1 billion, bringing total backlog to approximately $48.7 billion as of December 31, 2024.

Chris Kastner, HII’s president and CEO, said, “We continue to make progress on ships put under contract pre-COVID, and are working diligently with our customers to put over $50 billion of new work under contract. Mission Technologies continued its strong track record of top line growth and margin expansion and secured an impressive $12 billion 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
4101 Washington Ave. • Newport News, VA 23607
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Results of Operations
Three Months EndedYear Ended
December 31December 31
($ in millions, except per share amounts)20242023$ Change% Change20242023$ Change% Change
Sales and service revenues$3,004 $3,177 $(173)(5.4)%$11,535 $11,454 $81 0.7 %
Operating income110 312 (202)(64.7)%535 781 (246)(31.5)%
  Operating margin %3.7 %9.8 %(616) bps4.6 %6.8 %(218) bps
Segment operating income1
103 330 (227)(68.8)%573 842 (269)(31.9)%
  Segment operating margin %1
3.4 %10.4 %(696) bps5.0 %7.4 %(238) bps
Net earnings123 274 (151)(55.1)%550 681 (131)(19.2)%
Diluted earnings per share$3.15 $6.90 $(3.75)(54.3)%$13.96 $17.07 $(3.11)(18.2)%
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 EndedYear Ended
December 31December 31
($ in millions)20242023$ Change% Change20242023$ Change% Change
Sales and service revenues$736 $800 $(64)(8.0)%$2,767 $2,752 $15 0.5 %
Segment operating income1
46 169 (123)(72.8)%211 362 (151)(41.7)%
Segment operating margin %1
6.3 %21.1 %(1488) bps7.6 %13.2 %(553) bps
1 Non-GAAP measures. See Exhibit B for definitions and reconciliations.
Ingalls Shipbuilding revenues for the fourth quarter of 2024 were $736 million, a decrease of $64 million, or 8.0%, from the same period in 2023, primarily driven by lower volumes in amphibious assault ships, partially offset by higher volumes in surface combatants.

Ingalls Shipbuilding segment operating income1 for the fourth quarter of 2024 was $46 million and segment operating margin1 was 6.3%, compared to $169 million and 21.1% in the same period in the prior year, respectively. These decreases were primarily driven by the favorable sale of a court judgment and a contract incentive for surface combatants in the same period in the prior year.

Ingalls Shipbuilding 2024 revenues were $2.8 billion, an increase of $15 million, or 0.5%, compared to 2023, primarily driven by higher volumes in surface combatants, partially offset by lower volumes in amphibious assault ships and the National Security Cutter (NSC) program.

Ingalls Shipbuilding segment operating income1 in 2024 was $211 million and segment operating margin1 was 7.6%, compared to $362 million and 13.2% in 2023, respectively. These decreases were primarily driven by the favorable sale of a court judgment in 2023 and lower performance on amphibious assault ships and surface combatants.

Key 2024 Ingalls Shipbuilding milestones:
•Delivered amphibious transport dock Richard M. McCool Jr. (LPD 29)
•Awarded a $9.6 billion multi-ship procurement contract for the construction of LPD 33, 34 and 35 and large-deck amphibious ship LHA 10
•Authenticated the keel of guided missile destroyer Sam Nunn (DDG 133)
•Undocked USS Zumwalt (DDG 1000)


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









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4101 Washington Ave. • Newport News, VA 23607
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Newport News Shipbuilding
Three Months EndedYear Ended
December 31December 31
($ in millions)20242023$ Change% Change20242023$ Change% Change
Sales and service revenues$1,588 $1,665 $(77)(4.6)%$5,969 $6,133 $(164)(2.7)%
Segment operating income1
38 110 (72)(65.5)%246 379 (133)(35.1)%
Segment operating margin %1
2.4 %6.6 %(421) bps4.1 %6.2 %(206) bps
1 Non-GAAP measures. See Exhibit B for definitions and reconciliations.

Newport News Shipbuilding revenues for the fourth quarter of 2024 were $1.6 billion, a decrease of $77 million, or 4.6%, from the same period in 2023, primarily driven by lower volumes in aircraft carrier refueling and complex overhaul (RCOH), unfavorable cumulative catch-up adjustments on the Virginia-class submarine program and aircraft carrier construction, as well as lower naval nuclear support service volumes, partially offset by higher volumes in Columbia-class submarine construction.

Newport News Shipbuilding segment operating income1 for the fourth quarter of 2024 was $38 million and segment operating margin1 was 2.4%, compared to $110 million and 6.6% in the same period in the prior year, respectively. The decreases were primarily due to lower performance in Virginia-class submarine construction, and new carrier construction, partially offset by contract incentives on the Columbia-class program.

Newport News Shipbuilding 2024 revenues were $6.0 billion, a decrease of $164 million, or 2.7%, compared to 2023, primarily driven by cumulative catch-up adjustments on the Virginia-class submarine program, and lower volumes on aircraft carriers and naval nuclear support services, partially offset by higher volumes in the Columbia-class program.

Newport News Shipbuilding segment operating income1 for 2024 was $246 million and segment operating margin1 was 4.1%, compared to $379 million and 6.2% in 2023, respectively. The decreases were primarily driven by lower performance on the Virginia-class submarine program and aircraft carriers, partially offset by contract incentives on the Columbia-class program.

Key 2024 Newport News Shipbuilding milestones:
•Delivered Virginia-class submarine New Jersey (SSN 796)
•Floated off Massachusetts (SSN 798)
•Awarded advanced planning contract for the RCOH of USS Harry S. Truman (CVN 75)
•Completed dry dock work for aircraft carrier USS John C. Stennis (CVN 74) RCOH
•Shipped final module of Virginia-class submarine Utah (SSN 801)
•Announced intent to acquire South Carolina advanced metal fabricator to support enhanced shipbuilding throughput. Acquisition closed in January 2025.


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












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Mission Technologies
Three Months EndedYear Ended
December 31December 31
($ in millions)20242023$ Change% Change20242023$ Change% Change
Sales and service revenues$713 $745 $(32)(4.3)%$2,937 $2,699 $238 8.8 %
Segment operating income1
19 51 (32)(62.7)%116 101 15 14.9 %
Segment operating margin %1
2.7 %6.8 %(418) bps3.9 %3.7 %21 bps
1 Non-GAAP measures. See Exhibit B for definitions and reconciliations.

Mission Technologies revenues for the fourth quarter of 2024 were $713 million, a decrease of $32 million, or 4.3%, from the same period in 2023. The decrease was primarily due to lower volumes in C5ISR contracts.

Mission Technologies segment operating income1 in the fourth quarter of 2024 was $19 million and segment operating margin1 was 2.7%, compared to $51 million and 6.8% in the same period in the prior year, respectively. The decreases were primarily driven by the favorable settlement of an insurance claim in the fourth quarter of 2023.

Mission Technologies 2024 revenues were $2.9 billion, an increase of $238 million, or 8.8%, compared to 2023, primarily due to higher volumes in cyber, electronic warfare & space (CEW&S) and C5ISR contracts.

Mission Technologies segment operating income1 in 2024 was $116 million and segment operating margin1 was 3.9%, compared to $101 million and 3.7% in 2023, respectively. The increases were primarily driven by the higher volume and performance in CEW&S, stronger performance in fleet sustainment, as well as higher equity income from operating investments, partially offset by the favorable settlement of an insurance claim in 2023.

Mission Technologies results included approximately $99 million of amortization of purchased intangible assets in 2024, compared to approximately $109 million in 2023. Mission Technologies EBITDA margin1 for full year 2024 was 7.9%, compared to 8.6% in 2023.

Key 2024 Mission Technologies milestones:
•Awarded $6.7 billion contract to provide electronic warfare engineering and technical services support for the U.S. Air Force
•Awarded $3 billion Federal Government task order for national security services and new and emerging technology
•Awarded $458 million contract to modernize communications and information technology (IT) networks for the U.S. Department of Defense
•Announced the sale of three REMUS 100s and five REMUS 300s to the U.K. Royal Navy
•Awarded task order to provide systems engineering support for integrated training systems used onboard ships to enhance combat preparedness for sailors
•Awarded five-year contract to provide global supply chain services to the Australian Government’s Department of Defence

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

























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HII’s Financial Outlook1 includes the following expectations:

•Mid to long term5 HII revenue growth of 4%+
•Mid to long term5 shipbuilding revenue2 growth of approximately 4%
•Mid to long term5 Mission Technologies revenue growth of approximately 5%
•FY25 shipbuilding revenue2 between $8.9 and $9.1 billion; expect shipbuilding operating margin2 between 5.5% and 6.5%
•FY25 Mission Technologies revenue between $2.9 to $3.1 billion, Mission Technologies segment operating margin2 between 4.0% and 4.5%; and Mission Technologies EBITDA margin2 between 8.0% and 8.5%
•FY25 free cash flow2,3 between $300 and $500 million

FY25 Outlook1
Shipbuilding Revenue2
$8.9B - $9.1B
Shipbuilding Operating Margin2
5.5% - 6.5%
Mission Technologies Revenue
$2.9B - $3.1B
Mission Technologies Segment Operating Margin2
4.0% - 4.5%
Mission Technologies EBITDA Margin2
8.0% - 8.5%
Operating FAS/CAS Adjustment($43M)
Non-current State Income Tax Benefit/Expense4
~$0M
Interest Expense($130M)
Non-operating Retirement Benefit$191M
Effective Tax Rate~21%
Depreciation & Amortization~$340M
Capital Expenditures~4% of Sales
Free Cash Flow2, 3
$300M - $500M

1The financial outlook, expectations and other forward looking statements provided by the company for 2025 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 we are unable to provide such reconciliations without unreasonable effort due to the uncertainty and inherent difficulty of predicting the future occurrence and financial impact of certain elements of GAAP and non-GAAP measures. For the same reasons, we are unable to address the significance of the unavailable information.
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.
5Mid to long term growth represents our expected compound annual growth rate over five to ten years.












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About Huntington Ingalls Industries

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 over 44,000 strong. For more information, visit 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: HII.com. A telephone replay of the conference call will be available from noon today through Thursday, February 6th by calling (866) 813-9403 or (929) 458-6194 and using access code 390581.

Cautionary Statement Regarding Forward-Looking Statements
Statements in this earnings release and in our other filings with the SEC, as well as other statements we may make from time to time, 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," "guidance," "outlook," "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: our dependence on the U.S. government for substantially all of our business; significant delays or reductions in appropriations for our programs and/or changes in 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, labor challenges, changes in trade policy, or other factors and our efforts to recover or offset such costs and/or changes in estimated contract costs, and perform our contracts effectively; changes in business practices, procurement processes and government regulations and our ability to comply with such requirements; adverse economic conditions in the United States and globally; our level of indebtedness and ability to service our indebtedness; our ability to deliver our products and services at an affordable life cycle cost and compete within our markets; our ability to attract, retain, and train a qualified workforce; subcontractor and supplier performance and the availability and pricing of raw materials and components; our ability to execute our strategic plan, including with respect to share repurchases, dividends, capital expenditures, and strategic acquisitions; investigations, claims, disputes, enforcement actions, litigation (including criminal, civil, and administrative), and/or other legal proceedings, and improper conduct of employees, agents, subcontractors, suppliers, business partners, or joint ventures in which we participate, including the impact on our reputation or ability to do business; changes in key estimates and assumptions regarding our pension and retiree health care costs; security threats, including cyber security threats, and related disruptions; natural and environmental disasters and political instability; health epidemics, pandemics and similar outbreaks; and other risk factors discussed herein and in our other 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
HII.com
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Exhibit A: Financial Statements

HUNTINGTON INGALLS INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
Three Months Ended December 31Year Ended December 31
(in millions, except per share amounts)2024202320242023
Sales and service revenues
Product sales$1,990 $2,121 $7,464 $7,664 
Service revenues1,014 1,056 4,071 3,790 
Sales and service revenues3,004 3,177 11,535 11,454 
Cost of sales and service revenues
Cost of product sales1,780 1,756 6,500 6,467 
Cost of service revenues903 930 3,585 3,341 
Income from operating investments, net14 12 49 37 
Other income and gains, net9 120 9 120 
General and administrative expenses234 311 973 1,022 
Operating income110 312 535 781 
Other income (expense)
Interest expense(27)(25)(95)(95)
Non-operating retirement benefit45 37 179 148 
Other, net3 8 24 19 
Earnings before income taxes131 332 643 853 
Federal and foreign income tax expense8 58 93 172 
Net earnings$123 $274 $550 $681 
Basic earnings per share$3.15 $6.90 $13.96 $17.07 
Weighted-average common shares outstanding39.1 39.7 39.4 39.9 
Diluted earnings per share$3.15 $6.90 $13.96 $17.07 
Weighted-average diluted shares outstanding39.1 39.7 39.4 39.9 
Dividends declared per share$1.35 $1.30 $5.25 $5.02 
Net earnings from above$123 $274 $550 $681 
Other comprehensive income
Change in unamortized benefit plan costs514 225 528 238 
Tax expense for items of other comprehensive income(130)(57)(134)(61)
Other comprehensive income, net of tax384 168 394 177 
Comprehensive income$507 $442 $944 $858 










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HUNTINGTON INGALLS INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
($ in millions)December 31,
2024		December 31,
2023
Assets
Current Assets
Cash and cash equivalents$831 $430 
Accounts receivable, net212 461 
Contract assets1,683 1,537 
Inventoried costs, net208 186 
Income taxes receivable204 183 
Prepaid expenses and other current assets90 83 
Total current assets3,228 2,880 
Property, Plant, and Equipment, net of accumulated depreciation of $2,583 million as of 2024 and $2,467 million as of 2023
3,450 3,296 
Other Assets
Operating lease assets239 262 
Goodwill2,618 2,618 
Other intangible assets, net of accumulated amortization of $1,118 million as of 2024 and $1,009 million as of 2023
782 891 
Pension plan assets1,422 888 
Miscellaneous other assets402 380 
Total other assets5,463 5,039 
Total assets$12,141 $11,215 
Liabilities and Stockholders' Equity
Current Liabilities
Trade accounts payable598 554 
Accrued employees’ compensation392 382 
Current portion of long-term debt503 231 
Current portion of postretirement plan liabilities124 129 
Current portion of workers’ compensation liabilities201 224 
Contract liabilities774 1,063 
Other current liabilities399 449 
Total current liabilities2,991 3,032 
Long-term debt2,700 2,214 
Pension plan liabilities142 212 
Other postretirement plan liabilities209 241 
Workers’ compensation liabilities443 449 
Long-term operating lease liabilities205 228 
Deferred tax liabilities378 367 
Other long-term liabilities407 379 
Total liabilities7,475 7,122 
Commitments and Contingencies
Stockholders’ Equity
Common stock, $0.01 par value; 150,000,000 shares authorized; 53,714,128 issued and 39,129,419 outstanding as of December 31, 2024, and 53,595,748 issued and 39,618,880 outstanding as of December 31, 2023
1 1 
Additional paid-in capital2,045 2,045 
Retained earnings5,097 4,755 
Treasury stock(2,449)(2,286)
Accumulated other comprehensive loss(28)(422)
Total stockholders’ equity4,666 4,093 
Total liabilities and stockholders’ equity$12,141 $11,215 










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HUNTINGTON INGALLS INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
 Year Ended December 31
($ in millions)20242023
Operating Activities
Net earnings$550 $681 
Adjustments to reconcile to net cash provided by operating activities
Depreciation217 219 
Amortization of purchased intangibles109 128 
Other non-cash transactions, net10 29 
Stock-based compensation23 34 
Deferred income taxes(122)(113)
Loss (gain) on investments in marketable securities(22)(23)
Change in
Accounts receivable256 168 
Contract assets(146)(297)
Inventoried costs(22)(3)
Prepaid expenses and other assets(33)(42)
Accounts payable and accruals(315)264 
Retiree benefits(112)(75)
Net cash provided by operating activities393 970 
Investing Activities
Capital expenditures
Capital expenditure additions(367)(292)
Grant proceeds for capital expenditures14 14 
Investment in affiliates— (24)
Proceeds from equity method investment— 63 
Other investing activities, net5 3 
Net cash used in investing activities(348)(236)
Financing Activities
Proceeds from issuance of long-term debt1,000 — 
Repayment of long-term debt(229)(480)
Proceeds from line of credit borrowings42 — 
Repayment of line of credit borrowings(42)— 
Debt issuance costs(17)— 
Dividends paid(206)(200)
Repurchases of common stock(162)(75)
Employee taxes on certain share-based payment arrangements(25)(13)
Other financing activities, net(5)(3)
Net cash provided by (used in) financing activities356 (771)
Change in cash and cash equivalents401 (37)
Cash and cash equivalents, beginning of period430 467 
Cash and cash equivalents, end of period$831 $430 
Supplemental Cash Flow Disclosure
Cash paid for income taxes (net of refunds)$255 $330 
Cash paid for interest$101 $101 
Non-Cash Investing and Financing Activities
Capital expenditures accrued in accounts payable$23 $29 











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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
HII.com
Page 11 of 13


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 EndedYear Ended
December 31December 31
($ in millions)2024202320242023
Ingalls revenues$736 $800 $2,767 $2,752 
Newport News revenues1,588 1,665 5,969 6,133 
Mission Technologies revenues713 745 2,937 2,699 
Intersegment eliminations(33)(33)(138)(130)
Sales and Service Revenues3,004 3,177 11,535 11,454 
Operating Income110 312 535 781 
Operating FAS/CAS Adjustment14 17 62 72 
Non-current state income taxes(21)1 (24)(11)
Segment Operating Income103 330 573 842 
  As a percentage of sales and service revenues3.4 %10.4 %5.0 %7.4 %
Ingalls segment operating income46 169 211 362 
  As a percentage of Ingalls revenues6.3 %21.1 %7.6 %13.2 %
Newport News segment operating income38 110 246 379 
  As a percentage of Newport News revenues2.4 %6.6 %4.1 %6.2 %
Mission Technologies segment operating income19 51 116 101 
  As a percentage of Mission Technologies revenues2.7 %6.8 %3.9 %3.7 %









HII
4101 Washington Ave. • Newport News, VA 23607
HII.com
Page 12 of 13



Reconciliation of Free Cash Flow

Three Months EndedYear Ended
December 31December 31
($ in millions)2024202320242023
Net cash provided by operating activities$391 $562 $393 $970 
Less capital expenditures:
Capital expenditure additions (114)(128)(367)(292)
Grant proceeds for capital expenditures — — 14 14 
Free cash flow$277 $434 $40 $692 









Reconciliation of Mission Technologies EBITDA and EBITDA Margin

Three Months EndedYear Ended
December 31December 31
($ in millions)2024202320242023
Mission Technologies sales and service revenues$713 $745 $2,937 $2,699 
Mission Technologies segment operating income$19 $51 $116 $101 
Mission Technologies depreciation expense3 3 11 11 
Mission Technologies amortization expense24 27 99 109 
Mission Technologies state tax expense1 2 7 11 
Mission Technologies EBITDA$47 $83 $233 $232 
Mission Technologies EBITDA margin6.6 %11.1 %7.9 %8.6 %










HII
4101 Washington Ave. • Newport News, VA 23607
HII.com
Page 13 of 13

Q4 2024 Earnings Call Chris Kastner President and CEO Tom Stiehle EVP and CFO February 6, 2025 Exhibit 99.2

 
Q4 2024 EARNINGS Cautionary Statement Regarding Forward-looking Statements Statements in this presentation and in our other filings with the SEC, as well as other statements we may make from time to time, 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," "guidance," "outlook," "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: our dependence on the U.S. government for substantially all of our business; significant delays or reductions in appropriations for our programs and/or changes in 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, labor challenges, changes in trade policy, or other factors and our efforts to recover or offset such costs and/or changes in estimated contract costs, and perform our contracts effectively; changes in business practices, procurement processes and government regulations and our ability to comply with such requirements; adverse economic conditions in the United States and globally; our level of indebtedness and ability to service our indebtedness; our ability to deliver our products and services at an affordable life cycle cost and compete within our markets; our ability to attract, retain, and train a qualified workforce; subcontractor and supplier performance and the availability and pricing of raw materials and components; our ability to execute our strategic plan, including with respect to share repurchases, dividends, capital expenditures, and strategic acquisitions; investigations, claims, disputes, enforcement actions, litigation (including criminal, civil, and administrative), and/or other legal proceedings, and improper conduct of employees, agents, subcontractors, suppliers, business partners, or joint ventures in which we participate, including the impact on our reputation or ability to do business; changes in key estimates and assumptions regarding our pension and retiree health care costs; security threats, including cyber security threats, and related disruptions; natural and environmental disasters and political instability; health epidemics, pandemics and similar outbreaks; and other risk factors discussed herein and in our other 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. 2

 
Q4 2024 EARNINGS 3 HII INVESTMENT THESIS Largest U.S. military seapower provider with leading all-domain, integrated defense technologies Margin expansion opportunity driven by operational execution and new post-COVID contracts Free cash flow1 growth enabling disciplined capital allocation and increasing total shareholder value Working through majority of challenged pre-COVID contracts, focused on enhancing throughput and reducing cost – Top priority to get these ships delivered to the Navy Expect over $50B of contract awards, establishing balanced risk equation and margins more consistent with industry norms Over the next 24 months: Mid to Long Term: Top line growth of 4%+; $15B enterprise revenue by 2030 1 Non-GAAP measure. See appendix for definitions and reconciliations.

 
Q4 2024 EARNINGS 2025 Operational Initiatives 4 Acquired Production Site Near Charleston, SC » Highly skilled workforce and well capitalized infrastructure » Enhances capacity and throughput enabling improved build rates to meet generational customer demand » Enables near-term risk reduction and improved efficiencies on current programs » Capital efficient solution leveraging Navy and state/local partnerships to accelerate impact Enhancing Shipbuilding Throughput » Targeting 20% overall throughput improvement over 2024 » Multiple workforce improvement initiatives » Ramp up new South Carolina facility » Increase outsourcing to trusted providers » Utilize contract labor to address critical skill gaps Reducing Cost » $250M in annualized cost take out by year-end » Overhead and support labor reduction » Shared service and technology utilization New Contract Awards » Ensuring contract awards that reflect current operating environment » Expect $50B+ in new awards across 2025 & 2026, including submarines, RCOH of CVN 75 and amphibious ship bundle

 
Q4 2024 EARNINGS Shipbuilding Milestones1 5 2025 2026 5 Deliveries Planned for 2025-2026 Ingalls Shipbuilding » Launch DDG 129 » Sea Trials DDG 1000 Newport News Shipbuilding » Deliver CVN 792 » Deliver SSN 798 » Float off SSN 800 Ingalls Shipbuilding » Deliver DDG 128* » Launch DDG 131 » Deliver LHA 8 Newport News Shipbuilding » Lay Keel CVN 81 » Deliver SSN 800 1 All future milestones are based upon current expectations and subject to change based upon future events. List is alphabetical by program designation. 2 Evaluating options for optimizing combat capability additions and readiness * Denotes milestone moved from 2025

 
Q4 2024 EARNINGS HII Q4 2024 Revenue 6.1% 9.8% 3.7% CONSOLIDATED REVENUE ($M) $3,177 $3,004 Q423 Q424 Three Months Ended December 31 ($M) 2023 2024 % Change Ingalls Shipbuilding 800 736 (8.0)% Newport News Shipbuilding 1,665 1,588 (4.6)% Mission Technologies 745 713 (4.3)% Eliminations (33) (33) - Total 3,177 3,004 (5.4)% YoY variance driven by lower RCOH volume and cumulative adjustments at NNS, as well as lower amphibious volume at Ingalls and timing of product sales at Mission Technologies 6

 
Q4 2024 EARNINGS HII Q4 2024 Segment Operating Income1 6.1% 9.8% 3.7% 1 Non-GAAP measure. See appendix for definitions and reconciliations. Three Months Ended December 31 ($M) 2023 2024 % Change Ingalls Shipbuilding 169 46 (72.8)% Newport News Shipbuilding 110 38 (65.5)% Mission Technologies 51 19 (62.7)% Total 330 103 (68.8)% SEGMENT OPERATING INCOME ($M) & MARGIN % $330 $103 Q423 Q424 10.4% 3.4% YoY variance driven by NNS cumulative adjustments, favorable prior year sale of court judgment and contract incentive at Ingalls and favorable prior year insurance claim settlement at Mission Technologies 7

 
Q4 2024 EARNINGS HII 2024 Revenue 6.1% 9.8% 3.7% Twelve Months Ended December 31 ($M) 2023 2024 % Change Ingalls Shipbuilding 2,752 2,767 0.5% Newport News Shipbuilding 6,133 5,969 (2.7)% Mission Technologies 2,699 2,937 8.8% Eliminations (130) (138) Total 11,454 11,535 0.7% CONSOLIDATED REVENUE ($M) $11,454 $11,535 2023 2024 YoY variance driven by strong growth at Mission Technologies in CEW&S and C5ISR, largely offset by NNS cumulative adjustments and lower aircraft carrier and nuclear support service volumes 8

 
Q4 2024 EARNINGS HII 2024 Segment Operating Income1 SEGMENT OPERATING INCOME ($M) & MARGIN % 6.1% 9.8% 3.7% 1 Non-GAAP measure. See appendix for definitions and reconciliations. Twelve Months Ended December 31 ($M) 2023 2024 % Change Ingalls Shipbuilding 362 211 (41.7)% Newport News Shipbuilding 379 246 (35.1)% Mission Technologies 101 116 14.9% Total 842 573 (31.9)% $842 $573 2023 2024 5.0% 7.4% YoY variance driven by NNS cumulative adjustments, a favorable prior year sale of a court judgment at Ingalls, as well as a favorable prior year insurance claim settlement at Mission Technologies 9

 
Q4 2024 EARNINGS HII Q4 & FY 2024 Capital Deployment • Cash balance of $831 million and liquidity of $2.5 billion at year end • Net capital expenditures were 3.1% of revenues in 2024 • Cash contributions to pension and other postretirement benefit plans of $47 million in 2024 • $368 million distributed to shareholders in 2024 • Paid dividends totaling $206 million • Repurchased 608 thousand shares at an aggregate cost of $162 million 1 Non-GAAP measure. See appendix for definition and reconciliation. 10 $391 $393 ($114) ($353) $277 $40 ($400) ($300) ($200) ($100) $0 $100 $200 $300 $400 $500 Cash from Ops. CAPEX Free Cash Flow CASH FLOW GENERATION ($M) FY24Q4 24 1 $0 $50 $100 $150 $200 $250 $300 $350 $400 Q424 FY24 Dividends Share Repurchases (at cost) SHAREHOLDER DISTRIBUTIONS ($M) TOTAL $368 TOTAL $52 $162 $206

 
Q4 2024 EARNINGS HII Outlook1 HII Mid to Long Term5 Revenue Growth 4%+ • Shipbuilding mid to long term5 revenue2 growth ~4% • Mission Technologies mid to long term5 revenue growth ~5% 2025 Expectations • Shipbuilding operating margin2 of 5.5% to 6.5% • Includes throughput, cost improvement and contract award assumptions • Free cash flow2,4 of $300M to $500M Q1 2025 Expectations • Shipbuilding revenue2 of ~$2.1B and shipbuilding operating margin2 of ~5.5% • Mission Technologies revenue of ~$680M and segment operating margin2 of ~3.0% • Free cash flow2,4 of ($300M) to ($500M) 11 FY25 Outlook Shipbuilding Revenue2 $8.9B - $9.1B Shipbuilding Operating Margin2 5.5% - 6.5% Mission Technologies Revenue $2.9B - $3.1B Mission Technologies Segment Operating Margin2 4.0% - 4.5% Mission Technologies EBITDA Margin2 8.0% - 8.5% Operating FAS/CAS Adjustment ($43M) Non-current State Income Tax Benefit3 ~$0M Interest Expense ($130M) Non-operating Retirement Benefit $191M Effective Tax Rate ~21% Depreciation & Amortization ~$340M Capital Expenditures ~4% of Sales Free Cash Flow2,4 $300M - $500M FY25 OUTLOOK 1 The financial outlook, expectations and other forward looking statements provided by the company for 2025 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. 5 Mid to long term growth represents our expected compound annual growth rate over five to ten years. 11

 
Q4 2024 EARNINGS Appendix 12

 
Q4 2024 EARNINGS Pension Outlook1 ($ in millions) 2024 (Actual) 2025 2026 2027 2028 2029 Pension Discount Rate 5.28% Change from prior est. N/A 5.98% 51 Bps 5.98% 70 Bps 5.98% 70 Bps 5.98% 70 Bps 5.98% Expected Long-Term Return on Assets 8.00% N/A 8.00% N/A 8.00% N/A 8.00% N/A 8.00% N/A 8.00% Actual Return on Assets 7.7% (2.3%) N/A N/A N/A N/A N/A CAS Recoveries Over/(Under) Cash Contributions2,3 $6 $1 $2 N/A ($2) ($1) ($1) ($1) ($2) ($1) ($4) FAS Benefit/(Expense)3 $64 ($1) $100 $15 $112 $16 $125 $16 $133 $11 $148 CAS Expense3 $53 ($1) $48 ($1) $48 ($2) $49 ($2) $47 ($2) $43 FAS/CAS Adjustment3 $117 ($2) $148 $14 $160 $14 $174 $14 $180 $9 $191 Operating FAS/CAS Adjustment3 ($62) ($1) ($43) $9 ($41) $17 ($35) $19 ($35) $16 ($36) Non-Operating Retirement (Expense)/Income3 $179 ($1) $191 $5 $201 ($3) $209 ($5) $215 ($7) $227 Pension and Postretirement Benefits Cash Contributions2 $47 ($2) $46 ($1) $50 ($1) $50 ($1) $49 ($1) $47 1 2025-2029 projected and subject to change. 2 2024 cash contributions of $47 million include $11 million of discretionary pension contributions (<$1 million qualified; $11 million non-qualified) and $36 million of postretirement benefits contributions. 2025 projected cash contributions of $46 million include $12 million of discretionary pension contributions (<$1 million qualified; $12 million non-qualified) and $34 million of postretirement benefits contributions. 3 Includes pension and other postretirement benefits. 13

 
Q4 2024 EARNINGS 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. 14

 
Q4 2024 EARNINGS 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. 15

 
Q4 2024 EARNINGS Non-GAAP Reconciliations Segment Operating Income & Segment Operating Margin ($ in millions) 2024 2023 2024 2023 Ingalls revenues 736 800 2,767 2,752 Newport News revenues 1,588 1,665 5,969 6,133 Mission Technologies revenues 713 745 2,937 2,699 Intersegment eliminations (33) (33) (138) (130) Sales and Service Revenues 3,004 3,177 11,535 11,454 Operating Income 110 312 535 781 Operating FAS/CAS Adjustment 14 17 62 72 Non-current state income taxes (21) 1 (24) (11) Segment Operating Income 103 330 573 842 As a percentage of sales and service revenues 3.4 % 10.4 % 5.0 % 7.4 % Ingalls segment operating income 46 169 211 362 As a percentage of Ingalls revenues 6.3 % 21.1 % 7.6 % 13.2 % Newport News segment operating income 38 110 246 379 As a percentage of Newport News revenues 2.4 % 6.6 % 4.1 % 6.2 % Mission Technologies segment operating income 19 51 116 101 As a percentage of Mission Technologies revenues 2.7 % 6.8 % 3.9 % 3.7 % Three Months Ended December 31 December 31 Year Ended 16

 
Q4 2024 EARNINGS Non-GAAP Reconciliations Shipbuilding Revenues & Margin 17 ($ in millions) 2024 2023 2024 2023 Sales and service revenues 3,004 3,177 11,535 11,454 Mission Technologies (713) (745) (2,937) (2,699) Intersegment eliminations 33 33 138 130 Shipbuilding Revenues 2,324 2,465 8,736 8,885 Operating Income 110 312 535 781 Operating FAS/CAS Adjustment 14 17 62 72 Non-current state income taxes (21) 1 (24) (11) Segment Operating Income 103 330 573 842 Mission Technologies (19) (51) (116) (101) Shipbuilding Operating Income 84 279 457 741 As a percentage of shipbuilding revenues 3.6 % 11.3 % 5.2 % 8.3 % Three Months Ended December 31 December 31 Year Ended

 
Q4 2024 EARNINGS Non-GAAP Reconciliations Free Cash Flow ($ in millions) 2024 2023 2024 2023 Net cash provided by operating activities 391 562 393 970 Less capital expenditures: Capital expenditure additions (114) (128) (367) (292) Grant proceeds for capital expenditures — — 14 14 Free cash flow 277 434 40 692 Three Months Ended December 31 Year Ended December 31 18

 
Q4 2024 EARNINGS Non-GAAP Reconciliations Mission Technologies EBITDA & EBITDA Margin ($ in millions) 2024 2023 2024 2023 Mission Technologies sales and service revenues 713 745 2,937 2,699 Mission Technologies segment operating income 19 51 116 101 Mission Technologies depreciation expense 3 3 11 11 Mission Technologies amortization expense 24 27 99 109 Mission Technologies state tax expense 1 2 7 11 Mission Technologies EBITDA 47 83 233 232 Mission Technologies EBITDA margin 6.6 % 11.1 % 7.9 % 8.6 % Three Months Ended Year Ended December 31December 31 19

 

 
v3.25.0.1
DEI Document
Feb. 06, 2025
DEI [Abstract]  
Document Type 8-K
Document Period End Date Feb. 06, 2025
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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