Huntington Ingalls Industries, Inc. (HII)

Huntington Ingalls Industries' stock price experienced a decline in October 2024 due to a cut in its 2024 shipbuilding revenue guidance, attributed to supply chain issues, workforce experience, and contract delays. Faulty welds were found on Navy ships in September 2024. However, the stock has shown an uptrend in 2025, with analyst upgrades from TD Cowen and Goldman Sachs. The company reported Q1 2025 earnings per share of $3.97, surpassing estimates, despite a revenue decline.

Demand for Huntington Ingalls Industries' products and services is primarily driven by long-term government contracts, making it less subject to typical seasonal fluctuations. The company's substantial contract backlog provides significant revenue visibility. While there might be seasonal circumstances affecting capital expenditures or cash flow, these relate more to internal financial flows rather than external demand.

Huntington Ingalls Industries (HII) is the largest military shipbuilding company in the United States, providing professional services to government and industry partners. HII operates in the Industrials sector, focusing on Aerospace & Defense and Shipbuilding. The company designs, constructs, overhauls, and repairs military ships for the U.S. Navy and Coast Guard, including nuclear-powered aircraft carriers and submarines. HII's Mission Technologies division offers professional services such as C5ISR systems, AI/ML applications, cyberspace strategies, electronic warfare, uncrewed autonomous systems, and fleet sustainment.

HII's primary operations are located across several states in the United States, including Newport News, Virginia; Pascagoula, Mississippi; Virginia Beach, Virginia; San Diego, California; Huntsville, Alabama; and Fairfax, Virginia. While primarily serving the U.S. Government, HII also delivers solutions to allied partners worldwide and has over 100 facilities globally for its Mission Technologies division.

Huntington Ingalls Industries' brand reputation has been impacted by events including the discovery of faulty welds on Navy vessels in September and October 2024. This led to scrutiny and investigations, including the Navy exploring legal options. In November 2024, a shareholder rights litigation firm announced an investigation into HII concerning potential securities fraud. A 2024 shareholder resolution requested more transparency regarding HII's lobbying activities.

Huntington Ingalls Industries is predominantly owned by institutional shareholders, holding approximately 95.14% of the stock. Major institutional owners include Vanguard Group Inc., Fmr LLC, and BlackRock Inc. Insiders own about 4.28% of the company, while retail investors hold approximately 0.58%. C. Michael Petters is the largest individual shareholder, owning 1.17% of the company.