Huntington Ingalls Industries, Inc. (HII)

Over the past six months, HII's stock has experienced significant movement, reaching $429.64 on February 3, 2026, a 119.47% increase from the previous year, and a 52-week high of $432.00 on January 20, 2026. HII reported strong Q4 and full-year 2025 results, with revenues reaching $12.5 billion and diluted EPS at $15.39, but shares dropped after the earnings release due to warnings of negative free cash flow and execution risks at Newport News. HII has been increasing shipbuilding throughput and expanding its industrial base, doubling outsourced hours in 2025 with plans to quadruple them, and the reversal of R&D expensing provided a $150 million increase in free cash flow for 2025.

The demand for HII's products and services is primarily driven by U.S. Navy modernization efforts and the geopolitical landscape, rather than typical consumer-driven seasonality. The company's backlog indicates sustained long-term demand, and HII is actively expanding its shipbuilding capacity to meet this increased demand. While contracts are often fixed-price, material costs can fluctuate, impacting operating margins.

Huntington Ingalls Industries, Inc. (HII) is the largest military shipbuilding company in the United States and a provider of professional services to government and industry partners. The company operates within the Industrials sector, specifically in the Aerospace & Defense industry, and its business encompasses three main segments: Newport News Shipbuilding, Ingalls Shipbuilding, and Mission Technologies. HII designs, constructs, refuels, overhauls, and inactivates nuclear-powered ships, including U.S. Navy aircraft carriers and nuclear-powered submarines. It also designs, constructs, and maintains non-nuclear ships, such as amphibious assault ships, surface combatants, and national security cutters. Additionally, HII provides advanced unmanned solutions and C5ISR systems, AI and machine learning applications, cyberspace strategies, electronic warfare, platform modernization, and critical nuclear operations.

HII's primary operational facilities are located in Newport News, Virginia, specializing in nuclear-powered ships; Pascagoula, Mississippi, home to Ingalls Shipbuilding; Virginia Beach, Virginia, focusing on fleet support and training; San Diego, California, providing fleet support and repair; Huntsville, Alabama, engaged in modeling and simulation; and Fairfax, Virginia, offering IT and cybersecurity services. HII serves customers in over 30 countries with its unmanned systems and is expanding its industrial base through partnerships with shipyards and fabricators. The company has a presence in Australia and is exploring opportunities with Korea's HHI.

HII maintains a strong brand reputation as America's largest military shipbuilder and a critical component of the U.S. national defense infrastructure. The company is recognized for delivering ships and mission technologies to U.S. and allied defense customers. Recent disclosures regarding execution and margin risks at Newport News and pressures on the aircraft carrier program could impact investor and public perception.

Approximately 60.55% of HII's stock is owned by institutional investors, 0.75% by insiders, and 38.71% by public companies and individual investors. Major institutional owners include Vanguard Group Inc., Fmr Llc, BlackRock, Inc., State Street Corp, VanEck Vectors Morningstar Wide Moat ETF, Geode Capital Management, Llc, and Invesco Ltd.