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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)
October 31, 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 October 31, 2024, Huntington Ingalls Industries, Inc. issued a press release announcing its financial results for the quarter ended September 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 third 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.
October 31, 2024
  By: /s/ Thomas E. Stiehle
   Thomas E. Stiehle
   Executive Vice President and Chief Financial Officer


hii_logox2023xlogoa.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 Third Quarter 2024 Results and Provides Updated Outlook

NEWPORT NEWS, Va. (October 31, 2024) - HII (NYSE: HII) today reported results for the third quarter of fiscal 2024 and provided an update on its outlook.

Highlights
•Third quarter revenues were $2.7 billion
•Third quarter net earnings were $101 million or $2.56 diluted earnings per share
•Third quarter free cash flow1 was $136 million
•Company is providing updated fiscal 2024 outlook
•Company is withdrawing 5-year free cash flow1 outlook

Third Quarter Results
Third quarter 2024 revenues of $2.7 billion were down 2.4% from the third quarter of 2023, driven by lower volume at Ingalls Shipbuilding and Newport News Shipbuilding, partially offset by growth at Mission Technologies.

Operating income in the third quarter of 2024 was $82 million and operating margin was 3.0%, compared to $172 million and 6.1%, respectively, in the third quarter of 2023. The decreases were primarily driven by lower segment operating income1 compared to the prior year.

Segment operating income1 in the third quarter of 2024 was $97 million and segment operating margin1 was 3.5%, compared to $187 million and 6.6%, respectively, in the third quarter of 2023. The decreases were driven primarily by performance at Newport News Shipbuilding, which included a net unfavorable cumulative adjustment of $78 million, as well as lower performance at Ingalls Shipbuilding.

Net earnings in the quarter were $101 million, compared to $148 million in the third quarter of 2023. Diluted earnings per share in the quarter was $2.56, compared to $3.70 in the third quarter of 2023.

Net cash provided by operating activities in the quarter was $213 million and free cash flow1 was $136 million, compared to net cash provided by operating activities of $335 million and free cash flow1 of $293 million in the third quarter of 2023.

New contract awards in the third quarter of 2024 were $3.6 billion, bringing total backlog to approximately $49.4 billion as of September 30, 2024. Awards in the third quarter of 2024 included approximately $565 million related to the multi-ship amphibious award at Ingalls Shipbuilding.













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










HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 1 of 14

hii_logox2023xlogoa.jpg
Exhibit 99.1

News Release


Commentary on Third Quarter Results

“Two issues have impacted our results and guidance for the year," said Chris Kastner, HII’s president and CEO.

"First, based on constructive discussions with our Navy partner, we expected to reach an agreement for Virginia-class Block V and Block VI and Columbia-class submarines in the second half of 2024.
"Starting this fall, some uncertainty emerged about the timing of that agreement. While we are confident an agreement will be reached and discussions continue, we have updated our profitability and cash flow assumptions based on the uncertain timing and structure of the award.

"We continue to pursue innovative contracting approaches that incentivize greater investments in our workforce, facilities and technology. These investments are critical to yield accelerated program schedules that meet the urgent needs of the Navy.

"Second, our assumptions of performance improvement and risk reduction have not been achieved, due to late critical material deliveries from the supply chain and reduced experience levels within our teams, both in production touch labor and supervision. This leads to labor inefficiency, and in some cases to rework, which can affect program schedules.

"It bears repeating that nearly all of the ships currently under construction were negotiated prior to COVID, and since those contracts were signed we have seen a significant loss of shipbuilding experience in our yards. Those ship contracts, which we are still operating under at Newport News, did not anticipate in their cost targets and risk limiting clauses the significant disruption of our workforce and supply chain, or extended periods of heightened cost inflation.

“Let me be clear: delays and cost increases on these ships are unacceptable to me, my team, and all of us at HII. Looking ahead, we continue to take decisive actions to focus on the fundamentals of shipbuilding to ensure that we finish these ships, get them delivered to the Navy, and transition to ships negotiated in the context of our current economic reality.

"To summarize, we remain focused on optimizing our operations, improving our cost structure and shipbuilding performance, and driving higher throughput. We firmly believe the actions we are taking will enable us to stabilize performance as we continue to work through these ship contracts."




























HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 2 of 14

hii_logox2023xlogoa.jpg
Exhibit 99.1

News Release

HII Financial Outlook1
•FY24 shipbuilding revenue2 expected to be approximately $8.8B
•FY24 shipbuilding operating margin2 expected to be between 5.0% and 6.0%
•Increasing FY24 Mission Technologies expected revenue range to between $2.8B and $2.85B
•Increasing FY24 Mission Technologies expected operating margin2 to approximately 3.75%
•Capital expenditures expected to be approximately 3.4% of sales
•FY24 free cash flow2,3 expected to be between $0M and $100M
•Withdrawing previous five-year (2024-2028) free cash flow2 outlook

Prior FY24 Outlook1
Current FY24 Outlook1
Shipbuilding Revenue2
$8.8B - $9.1B~$8.8B
Shipbuilding Operating Margin2
7.6% - 7.8%5.0% - 6.0%
Mission Technologies Revenue
$2.75B - $2.8B$2.8B - $2.85B
Mission Technologies Segment Operating Margin2
3.0% - 3.5%~3.75%
Mission Technologies EBITDA Margin2
8.0% - 8.5%8.0% - 8.5%
Operating FAS/CAS Adjustment($63M)($61M)
Non-current State Income Tax Benefit/Expense2,4
~$0M~$0M
Interest Expense($95M)($97M)
Non-operating Retirement Benefit$178M$180M
Effective Tax Rate~21%~17%
Depreciation & Amortization~$350M~$350M
Capital Expenditures~5.3%
of Sales		~3.4%
of Sales
Free Cash Flow2,3
$600M - $700M$0M - $100M

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 3 of 14


Results of Operations
Three Months EndedNine Months Ended
September 30September 30
($ in millions, except per share amounts)20242023$ Change% Change20242023$ Change% Change
Sales and service revenues$2,749 $2,816 $(67)(2.4)%$8,531 $8,277 $254 3.1 %
Operating income82 172 (90)(52.3)%425 469 (44)(9.4)%
  Operating margin %3.0 %6.1 %(313) bps5.0 %5.7 %(68) bps
Segment operating income1
97 187 (90)(48.1)%470 512 (42)(8.2)%
  Segment operating margin %1
3.5 %6.6 %(311) bps5.5 %6.2 %(68) bps
Net earnings101 148 (47)(31.8)%427 407 20 4.9 %
Diluted earnings per share$2.56 $3.70 $(1.14)(30.8)%$10.81 $10.18 $0.63 6.2 %
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 EndedNine Months Ended
September 30September 30
($ in millions)20242023$ Change% Change20242023$ Change% Change
Revenues$664 $711 $(47)(6.6)%$2,031 $1,952 $79 4.0 %
Segment operating income1
49 73 (24)(32.9)%165 193 (28)(14.5)%
Segment operating margin %1
7.4 %10.3 %(289) bps8.1 %9.9 %(176) bps
1 Non-GAAP measures. See Exhibit B for definitions and reconciliations.

Ingalls Shipbuilding revenues for the third quarter of 2024 were $664 million, a decrease of $47 million, or 6.6%, from the same period in 2023, primarily driven by lower volumes in amphibious assault ships and the
Legend-class National Security Cutter program, partially offset by higher volumes in surface combatants.

Ingalls Shipbuilding segment operating income1 for the third quarter of 2024 was $49 million, a decrease of $24 million from the same period in 2023. Segment operating margin1 in the third quarter of 2024 was 7.4%, compared to 10.3% in the same period last year. The decreases were primarily driven by lower performance on amphibious assault ships and surface combatants.


Key Ingalls Shipbuilding milestones for the quarter:
•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















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










HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 4 of 14



Newport News Shipbuilding
Three Months EndedNine Months Ended
September 30September 30
($ in millions)20242023$ Change% Change20242023$ Change% Change
Revenues$1,412 $1,453 $(41)(2.8)%$4,381 $4,468 $(87)(1.9)%
Segment operating income1
15 90 (75)(83.3)%208 269 (61)(22.7)%
Segment operating margin %1
1.1 %6.2 %(513) bps4.7 %6.0 %(127) bps
1 Non-GAAP measures. See Exhibit B for definitions and reconciliations.

Newport News Shipbuilding revenues for the third quarter of 2024 were $1.4 billion, a decrease of $41 million, or 2.8%, from the same period in 2023. The decrease was driven primarily by lower volumes in naval nuclear support services and unfavorable cumulative adjustments on the Virginia-class submarine program and aircraft carriers, partially offset by higher volumes in the Columbia-class submarine program.

Newport News Shipbuilding segment operating income1 for the third quarter of 2024 was $15 million, a decrease of $75 million from the same period in 2023. Segment operating margin1 in the third quarter of 2024 was 1.1% compared to 6.2% in the same period last year. The decreases were primarily driven by lower performance on the Virginia-class submarine program and aircraft carriers. Newport News Shipbuilding third quarter 2024 results included a net unfavorable cumulative adjustment totaling $78 million, including $34 million on Block IV of the Virginia-class submarine program.

Key Newport News Shipbuilding milestones for the quarter:
•Shipped final module of Virginia-class submarine Utah (SSN 801)


Mission Technologies

Three Months EndedNine Months Ended
September 30September 30
($ in millions)20242023$ Change% Change20242023$ Change% Change
Revenues$709 $685 $24 3.5 %$2,224 $1,954 $270 13.8 %
Segment operating income1
33 24 9 37.5 %97 50 47 94.0 %
Segment operating margin %1
4.7 %3.5 %115 bps4.4 %2.6 %180 bps
1 Non-GAAP measures. See Exhibit B for definitions and reconciliations.

Mission Technologies revenues for the third quarter of 2024 were $709 million, an increase of $24 million, or
3.5%, from the same period in 2023. The increase was primarily due to higher volumes in cyber, electronic warfare & space.

Mission Technologies segment operating income1 for the third quarter of 2024 was $33 million, compared to $24 million in the third quarter of 2023. Segment operating margin1 in the third quarter of 2024 was 4.7%, compared to 3.5% in the same period last year. The increases were primarily driven by higher volumes described above and higher equity income from nuclear and environmental joint ventures.

Mission Technologies results included approximately $25 million of amortization of purchased intangible assets in the third quarter of 2024, compared to approximately $27 million in the same period last year.

Mission Technologies EBITDA margin1 in the third quarter of 2024 was 8.9%, an increase from 8.2% in the third quarter of 2023.







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









HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 5 of 14




Key Mission Technologies milestones for the quarter:
•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
•Awarded $209 million contract to support U.S. Air Force weapons systems development and sustainment
•Awarded $197 million contract to research and develop technology enhancements for U.S. Army ground combat vehicles
•Awarded $75 million task order to provide systems engineering support for integrated training systems used onboard ships to enhance combat preparedness for sailors
•Awarded task order to support U.S. Air Force sustainment of special-purpose aircraft
•Delivered advanced REMUS 620 UUVs to NOAA less than 24 months after unveiling
•Awarded five-year contract to provide global supply chain services to the Australian Government’s Department of Defence
•Achieved funded book-to-bill of 2.2x in the third quarter and 1.3x year to date

























HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 6 of 14



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, November 7th by calling (866) 813-9403 or (929) 458-6194 and using access code 916957.










HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 7 of 14



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," “guidance,” “projections,” “outlook,” 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, labor challenges or other factors and our efforts to recover or offset such costs and/or changes in estimated contract costs, and perform our contracts effectively; the adequacy and sufficiency of our resources, including labor and facilities, to allow us to meet our production schedules and timelines and achieve desired performance improvement and risk reduction targets over time; 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; the availability and pricing of raw materials and components from our suppliers; adverse economic conditions in the United States and globally; health epidemics, pandemics, and similar outbreaks; our ability to attract, retain, and train 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; investigations, claims, disputes, enforcement actions, litigation (including criminal, civil and administrative) and/or other legal proceedings, including the impact that any such proceedings may have on our reputation or ability to do business; improper conduct of employees, agents, subcontractors, suppliers, business partners, or joint ventures in which we participate; security threats, including cyber security threats, and related disruptions; and other risk factors discussed herein and in our other filings with the SEC. Additional factors include those described in our 2023 Annual Report on Form 10-K, including under the captions “Risk Factors,” “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 8 of 14


Exhibit A: Financial Statements

HUNTINGTON INGALLS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)
Three Months Ended September 30Nine Months Ended September 30
(in millions, except per share amounts)2024202320242023
Sales and service revenues
Product sales$1,761 $1,835 $5,474 $5,543 
Service revenues988 981 3,057 2,734 
Sales and service revenues2,749 2,816 8,531 8,277 
Cost of sales and service revenues
Cost of product sales1,556 1,541 4,720 4,711 
Cost of service revenues871 859 2,682 2,411 
Income from operating investments, net12 9 35 25 
General and administrative expenses252 253 739 711 
Operating income82 172 425 469 
Other income (expense)
Interest expense(23)(22)(68)(70)
Non-operating retirement benefit44 37 134 111 
Other, net9 2 21 11 
Earnings before income taxes112 189 512 521 
Federal and foreign income tax expense11 41 85 114 
Net earnings$101 $148 $427 $407 
Basic earnings per share$2.56 $3.70 $10.81 $10.18 
Weighted-average common shares outstanding39.5 40.0 39.5 40.0 
Diluted earnings per share$2.56 $3.70 $10.81 $10.18 
Weighted-average diluted shares outstanding39.5 40.0 39.5 40.0 
Dividends declared per share$1.30 $1.24 $3.90 $3.72 
Net earnings from above$101 $148 $427 $407 
Other comprehensive income (loss)
Change in unamortized benefit plan costs5 4 14 13 
Tax expense for items of other comprehensive income(2)(2)(4)(4)
Other comprehensive income, net of tax3 2 10 9 
Comprehensive income$104 $150 $437 $416 










HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 9 of 14


HUNTINGTON INGALLS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
($ in millions)September 30,
2024		December 31, 2023
Assets
Current Assets
Cash and cash equivalents$10 $430 
Accounts receivable, net of allowance for expected credit losses of $2 million as of 2024 and $8 million as of 2023
436 461 
Contract assets1,714 1,537 
Inventoried costs205 186 
Income taxes receivable173 183 
Prepaid expenses and other current assets91 83 
Total current assets2,629 2,880 
Property, Plant, and Equipment, net of accumulated depreciation of $2,544 million as of 2024 and $2,467 million as of 2023
3,384 3,296 
Operating lease assets249 262 
Goodwill2,618 2,618 
Other intangible assets, net of accumulated amortization of $1,091 million as of 2024 and $1,009 million as of 2023
809 891 
Pension plan assets985 888 
Miscellaneous other assets408 380 
Total assets$11,082 $11,215 
Liabilities and Stockholders' Equity
Current Liabilities
Trade accounts payable579 554 
Accrued employees’ compensation345 382 
Short-term debt and current portion of long-term debt898 231 
Current portion of postretirement plan liabilities129 129 
Current portion of workers’ compensation liabilities224 224 
Contract liabilities743 1,063 
Other current liabilities418 449 
Total current liabilities3,336 3,032 
Long-term debt1,709 2,214 
Pension plan liabilities219 212 
Other postretirement plan liabilities232 241 
Workers’ compensation liabilities448 449 
Long-term operating lease liabilities213 228 
Deferred tax liabilities316 367 
Other long-term liabilities406 379 
Total liabilities6,879 7,122 
Commitments and Contingencies
Stockholders’ Equity
Common stock, $0.01 par value; 150,000,000 shares authorized; 53,713,746 shares issued and 39,129,037 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 capital2,037 2,045 
Retained earnings5,026 4,755 
Treasury stock(2,449)(2,286)
Accumulated other comprehensive loss(412)(422)
Total stockholders’ equity4,203 4,093 
Total liabilities and stockholders’ equity$11,082 $11,215 













HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 10 of 14


HUNTINGTON INGALLS INDUSTRIES, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 Nine Months Ended September 30
($ in millions)20242023
Operating Activities
Net earnings$427 $407 
Adjustments to reconcile net cash provided by operating activities:
Depreciation160 163 
Amortization of purchased intangibles82 96 
Other non-cash transactions, net7 16 
Stock-based compensation15 27 
Deferred income taxes(55)(81)
Gain on investments in marketable securities(22)(10)
Change in
Accounts receivable31 (62)
Contract assets(177)(60)
Inventoried costs(19)(12)
Prepaid expenses and other assets(9)(66)
Accounts payable and accruals(354)45 
Retiree benefits(84)(55)
Net cash provided by operating activities2 408 
Investing Activities:
Capital expenditures
Capital expenditure additions(253)(164)
Grant proceeds for capital expenditures14 14 
Investment in affiliates— (24)
Proceeds from disposition of equity method investments— 61 
Other investing activities, net1 2 
Net cash used in investing activities(238)(111)
Financing Activities:
Repayment of long-term debt(229)(455)
Proceeds from revolving credit facility borrowings42 — 
Repayment of revolving credit facility borrowings(42)— 
Net borrowings on commercial paper396 — 
Debt issuance costs(7)— 
Dividends paid(154)(149)
Repurchases of common stock(162)(37)
Employee taxes on certain share-based payment arrangements(25)(13)
Other financing activities, net(3)(1)
Net cash used in financing activities(184)(655)
Change in cash and cash equivalents(420)(358)
Cash and cash equivalents, beginning of period430 467 
Cash and cash equivalents, end of period$10 $109 
Supplemental Cash Flow Disclosure
Cash paid for income taxes (net of refunds)$170 $227 
Cash paid for interest$66 $63 
Non-Cash Investing and Financing Activities
Capital expenditures accrued in accounts payable$12 $6 









HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 11 of 14





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.










HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 12 of 14


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.

Reconciliations of Segment Operating Income and Segment Operating Margin

Three Months EndedNine Months Ended
September 30September 30
($ in millions)2024202320242023
Ingalls revenues$664 $711 $2,031 $1,952 
Newport News revenues1,412 1,453 4,381 4,468 
Mission Technologies revenues709 685 2,224 1,954 
Intersegment eliminations(36)(33)(105)(97)
Sales and Service Revenues2,749 2,816 8,531 8,277 
Operating Income82 172 425 469 
Operating FAS/CAS Adjustment16 19 48 55 
Non-current state income taxes(1)(4)(3)(12)
Segment Operating Income97 187 470 512 
  As a percentage of sales and service revenues3.5 %6.6 %5.5 %6.2 %
Ingalls segment operating income49 73 165 193 
  As a percentage of Ingalls revenues7.4 %10.3 %8.1 %9.9 %
Newport News segment operating income15 90 208 269 
  As a percentage of Newport News revenues1.1 %6.2 %4.7 %6.0 %
Mission Technologies segment operating income33 24 97 50 
  As a percentage of Mission Technologies revenues4.7 %3.5 %4.4 %2.6 %









HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 13 of 14



Reconciliation of Free Cash Flow

Three Months EndedNine Months Ended
September 30September 30
($ in millions)2024202320242023
Net cash provided by operating activities$213 $335 $2 $408 
Less capital expenditures:
Capital expenditure additions (88)(53)(253)(164)
Grant proceeds for capital expenditures 11 11 14 14 
Free cash flow$136 $293 $(237)$258 




Reconciliation of Mission Technologies EBITDA and EBITDA Margin

Three Months EndedNine Months Ended
September 30September 30
($ in millions)2024202320242023
Mission Technologies sales and service revenues$709 $685 $2,224 $1,954 
Mission Technologies segment operating income$33 $24 $97 $50 
Mission Technologies depreciation expense3 2 8 8 
Mission Technologies amortization expense25 27 75 82 
Mission Technologies state tax expense2 3 6 9 
Mission Technologies EBITDA$63 $56 $186 $149 
Mission Technologies EBITDA margin8.9 %8.2 %8.4 %7.6 %









HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 14 of 14

HII Q3 2024 Earnings October 31, 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," “guidance,” “projections,” “outlook,” 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, labor challenges or other factors and our efforts to recover or offset such costs and/or changes in estimated contract costs, and perform our contracts effectively; the adequacy and sufficiency of our resources, including labor and facilities, to allow us to meet our production schedules and timelines and achieve desired performance improvement and risk reduction targets over time; 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; the availability and pricing of raw materials and components from our suppliers; adverse economic conditions in the United States and globally; health epidemics, pandemics, and similar outbreaks; our ability to attract, retain, and train 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; investigations, claims, disputes, enforcement actions, litigation (including criminal, civil and administrative) and/or other legal proceedings, including the impact that any such proceedings may have on our reputation or ability to do business; improper conduct of employees, agents, subcontractors, suppliers, business partners, or joint ventures in which we participate; security threats, including cyber security threats, and related disruptions; and other risk factors discussed herein and in our other filings with the SEC. Additional factors include those described in our 2023 Annual Report on Form 10-K, including under the captions “Risk Factors,” “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 presentation 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 Q3 2024 Operational Highlights 3 Ingalls Shipbuilding Highlights • 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 • Launched LPD 30 Harrisburg in early October Newport News Shipbuilding Highlights • Shipped final module of Virginia-class submarine Utah (SSN 801) • 92% of CVN 79 Kennedy compartments have been turned over to the Navy and all combat systems have been turned over to test team Mission Technologies Highlights • Achieved 14% revenue growth YTD • Q3 2024 funded book-to-bill of 2.2x and 1.3x YTD • Awarded contracts with potential total value of ~$11B The bow of Virginia-class submarine Utah (SSN 801) makes its way via barge in Manhattan Photo courtesy: Roosevelt Islander Online HII’s “Build It” campaign highlights paid training and development at its shipyards HII delivered two REMUS 620 UUVs to NOAA for enhanced ocean floor mapping

 
4 Mission Technologies Q3 Wins • $6.7 billion contract to provide electronic warfare engineering and technical services support for the U.S. Air Force • $3 billion Federal Government task order for national security services and new and emerging technology • $458 million contract to modernize communications and information technology (IT) networks for the U.S. Department of Defense • $209 million contract to support U.S. Air Force weapons systems development and sustainment • $197 million contract to research and develop technology enhancements for U.S. Army ground combat vehicles • $75 million task order to provide systems engineering support for integrated training systems used onboard ships to enhance combat preparedness for sailors • Awarded task order to support U.S. Air Force sustainment of special-purpose aircraft • Delivered advanced REMUS 620 UUVs to NOAA less than 24 months after unveiling • Awarded five-year contract to provide global supply chain services to the Australian Government’s Department of Defence Contract values are potential Total Contract Value (TCV) Capturing awards across all branches and multi-domain operations Awarded a contract to support U.S. Air Force Weapons Systems Development and Sustainment Awarded a contract to provide supply chain services to Australian DoD and support a supply chain uplift program Awarded a contract to modernize IT architecture for U.S. Department of Defense

 
5 Newport News Shipbuilding Contract Update and Operational Improvements • Uncertainty related to the timing and structure of the Virginia-class Block V, Block VI and Columbia-class submarine agreement with our Navy partner • Confident an agreement will be reached and discussions continue • Updating outlook to reflect uncertain timing and structure of the award as we continue to work through ship contracts negotiated pre-COVID • Updating fiscal 2024 shipbuilding margin2 and free cash flow2 expectations and withdrawing 5-year free cash flow2 outlook • Actions underway to drive improved shipbuilding performance, optimize cost structure and support higher throughput • Significant hiring, attrition and training initiatives • Targeted cost reduction initiatives • Reducing expected 2024 capital expenditures and assessing out years • Supporting supply chain resiliency and enhancing capacity • Pursuing innovative contracting approaches that incentivize greater investments in our workforce, facilities and technology UPDATED FY24 GUIDANCE1 Shipbuilding operating margin2 guidance for FY24: 5.0% - 6.0% Revised free cash flow2 guidance for FY24: $0 - $100M 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 and reconciliations.

 
$172 $82 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 Q323 Q324 6 HII Q3 2024 Consolidated Results • Revenue declined $67M or 2.4% YoY driven by results at Ingalls Shipbuilding and Newport News Shipbuilding, partially offset by growth at Mission Technologies CONSOLIDATED REVENUE ($M) OPERATING INCOME ($M) & MARGIN % 5.6% • Operating income decreased $90M YoY driven primarily by unfavorable cumulative adjustments at Newport News Shipbuilding, as well as lower performance at Ingalls Shipbuilding 6.1% 3.0% $2,816 $2,749 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 Q323 Q324

 
7 HII Q3 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 National Security _Cutter volumes + Surface combatant volume Operating Income - Lower amphibious assault ship and surface _combatant performance Revenue - Naval nuclear support services - Virginia-class submarine and aircraft carrier cumulative adjustments + Columbia-class submarine volume Operating Income - $78M net unfavorable cumulative adjustment Revenue + Cyber, Electronic Warfare & Space (CEWS) volume Operating Income + CEWS volume and equity income from nuclear and environmental joint ventures $711 $664 $0 $200 $400 $600 $800 Q323 Q324 $73 $49 $0 $20 $40 $60 $80 Q323 Q324 $1,453 $1,412 $0 $500 $1,000 $1,500 $2,000 Q323 Q324 $90 $15 $0 $20 $40 $60 $80 $100 Q323 Q324 $685 $709 $0 $200 $400 $600 $800 Q323 Q324 $24 $33 $0 $10 $20 $30 $40 Q323 Q324 10.3% 7.4% 6.2% 1.1% 3.5% 4.7%

 
$335 $213 ($42) ($77) $293 $136 ($100) ($50) $0 $50 $100 $150 $200 $250 $300 $350 $400 Cash from Ops. CAPEX Free Cash Flow 8 HII Q3 2024 Capital Deployment CASH FLOW GENERATION ($M) SHAREHOLDER DISTRIBUTIONS ($M) • Liquidity of ~$1.3 billion at quarter end • Net capital expenditures of 2.8% of revenues in Q3 • Cash contributions to pension and other postretirement benefit plans of $12 million in Q3 • Distributions to shareholders of $87 million in Q3 • Paid dividends totaling $52 million • Repurchased 134 thousand shares at an aggregate cost of $35 million 1 Non-GAAP measure. See appendix for definition and reconciliation. 1 Q3 23 Q3 24 $49 $9 $62 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 Q3 23 Q3 24 Dividends Share Repurchases (at cost) TOTAL $71 TOTAL $87 $50 $21 $35 $52

 
9 HII Financial Outlook1 Prior FY24 Outlook Current FY24 Outlook1 Shipbuilding Revenue2 $8.8B - $9.1B ~$8.8B Shipbuilding Operating Margin2 7.6% - 7.8% 5.0% - 6.0% Mission Technologies Revenue $2.75B - $2.8B $2.8B - $2.85B Mission Technologies Segment Operating Margin2 3.0% - 3.5% ~3.75% Mission Technologies EBITDA Margin2 8.0% - 8.5% 8.0% - 8.5% Operating FAS/CAS Adjustment ($63M) ($61M) Non-current State Income Tax Benefit/Expense2,3 ~$0M ~$0M Interest Expense ($95M) ($97M) Non-operating Retirement Benefit $178M $180M Effective Tax Rate ~21% ~17% Depreciation & Amortization ~$350M ~$350M Capital Expenditures ~5.3% of Sales ~3.4% of Sales Free Cash Flow2,4 $600M - $700M $0M - $100M 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.

 
Appendix

 
11 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.

 
12 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.

 
13 Non-GAAP Reconciliations Segment Operating Income & Segment Operating Margin ($ in millions) 2024 2023 2024 2023 Ingalls revenues 664 711 2,031 1,952 Newport News revenues 1,412 1,453 4,381 4,468 Mission Technologies revenues 709 685 2,224 1,954 Intersegment eliminations (36) (33) (105) (97) Sales and Service Revenues 2,749 2,816 8,531 8,277 Operating Income 82 172 425 469 Operating FAS/CAS Adjustment 16 19 48 55 Non-current state income taxes (1) (4) (3) (12) Segment Operating Income 97 187 470 512 As a percentage of sales and service revenues 3.5 % 6.6 % 5.5 % 6.2 % Ingalls segment operating income 49 73 165 193 As a percentage of Ingalls revenues 7.4 % 10.3 % 8.1 % 9.9 % Newport News segment operating income 15 90 208 269 As a percentage of Newport News revenues 1.1 % 6.2 % 4.7 % 6.0 % Mission Technologies segment operating income 33 24 97 50 As a percentage of Mission Technologies revenues 4.7 % 3.5 % 4.4 % 2.6 % Three Months Ended September 30 September 30 Nine Months Ended

 
14 Non-GAAP Reconciliations Shipbuilding Revenue & Operating Margin ($ in millions) 2024 2023 2024 2023 Sales and service revenues 2,749 2,816 8,531 8,277 Mission Technologies revenues (709) (685) (2,224) (1,954) Intersegment eliminations 36 33 105 97 Shipbuilding Revenues 2,076 2,164 6,412 6,420 Operating Income 82 172 425 469 Operating FAS/CAS Adjustment 16 19 48 55 Non-current state income taxes (1) (4) (3) (12) Segment Operating Income 97 187 470 512 Mission Technologies operating income (33) (24) (97) (50) Shipbuilding operating income 64 163 373 462 Shipbuilding operating margin 3.1 % 7.5 % 5.8 % 7.2 % Three Months Ended September 30 September 30 Nine Months Ended

 
15 Non-GAAP Reconciliations Free Cash Flow ($ in millions) 2024 2023 2024 2023 Net cash provided by operating activities 213 335 2 408 Less capital expenditures: Capital expenditure additions (88) (53) (253) (164) Grant proceeds for capital expenditures 11 11 14 14 Free cash flow 136 293 (237) 258 Three Months Ended September 30 September 30 Nine Months Ended

 
16 Non-GAAP Reconciliations Mission Technologies EBITDA & EBITDA Margin (in millions) 2024 2023 2024 2023 Mission Technologies sales and service revenues 709 685 2,224 1,954 Mission Technologies segment operating income 33 24 97 50 Mission Technologies depreciation expense 3 2 8 8 Mission Technologies amortization expense 25 27 75 82 Mission Technologies state tax expense 2 3 6 9 Mission Technologies EBITDA 63 56 186 149 Mission Technologies EBITDA margin 8.9 % 8.2 % 8.4 % 7.6 % Three Months Ended Nine Months Ended September 30September 30

 
17 Pension Outlook 1 Includes pension & other postretirement benefits. 2 2024 projected cash contributions of $49 million include $12 million of discretionary pension contributions ($<1 million qualified; $12 million non-qualified) and $35 million of post retirement benefits contributions. 2025 projected cash contributions of $47 million include $13 million of discretionary pension contributions ($<1 million qualified; $13 million non-qualified) and $34 million of post retirement benefits contributions. 3 Projected and subject to change during 2024 and 2025. 4 Returns through September 30, 2024. ($ in millions) 2023 (Actual) 20243 20253 Pension Discount Rate 5.47% 5.28% Change from prior est. N/A 5.47% Change from prior est. +19Bps Expected Long-Term Return on Assets 8.00% 8.00% N/A 8.00% N/A Actual return on Assets 12.3% 10.0%4 10.0%4 CAS Recoveries Over Cash Contributions1,2 $2 $5 $2 $2 N/A FAS Benefit1 $30 $65 N/A $85 $1 CAS Expense1 $46 $54 $4 $49 ($1) FAS/CAS Adjustment1 $76 $119 $4 $134 N/A Operating FAS/CAS Adjustment1 ($72) ($61) $2 ($52) $11 Non-Operating Retirement Income1 $148 $180 $2 $186 ($11) Pension and Post-retirement Benefits Cash Contributions2 $44 $49 $2 $47 ($1)

 

 
v3.24.3
DEI Document
Oct. 31, 2024
DEI [Abstract]  
Document Type 8-K
Document Period End Date Oct. 31, 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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