HUNTINGTON INGALLS INDUSTRIES INC
For the period ended Mar 31, 2025. Filed May 1, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 1, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Revenue
- REVENUE
Disaggregation of Revenue
The following tables present revenues on a disaggregated basis:
| ($ in millions) | Ingalls | Newport News | Mission Technologies | Intersegment Eliminations | Total |
|---|---|---|---|---|---|
| Revenue Type | |||||
| Product sales | $526 | $1,160 | $27 | $— | $1,713 |
| Service revenues | 107 | 236 | 678 | — | 1,021 |
| Intersegment | 4 | — | 30 | (34) | — |
| Sales and service revenues | $637 | $1,396 | $735 | $(34) | $2,734 |
| Customer Type | |||||
| Federal | $633 | $1,396 | $701 | $— | $2,730 |
| Commercial | — | — | 4 | — | 4 |
| Intersegment | 4 | — | 30 | (34) | — |
| Sales and service revenues | $637 | $1,396 | $735 | $(34) | $2,734 |
| Contract Type | |||||
| Firm fixed-price | $— | $2 | $97 | $— | $99 |
| Fixed-price incentive | 526 | 766 | 2 | — | 1,294 |
| Cost-type | 107 | 627 | 569 | — | 1,303 |
| Time and materials | — | 1 | 37 | — | 38 |
| Intersegment | 4 | — | 30 | (34) | — |
| Sales and service revenues | $637 | $1,396 | $735 | $(34) | $2,734 |
| ($ in millions) | Ingalls | Newport News | Mission Technologies | Intersegment Eliminations | Total |
|---|---|---|---|---|---|
| Revenue Type | |||||
| Product sales | $586 | $1,176 | $25 | $— | $1,787 |
| Service revenues | 67 | 257 | 694 | — | 1,018 |
| Intersegment | 2 | 1 | 31 | (34) | — |
| Sales and service revenues | $655 | $1,434 | $750 | $(34) | $2,805 |
| Customer Type | |||||
| Federal | $653 | $1,433 | $717 | $— | $2,803 |
| Commercial | — | — | 2 | — | 2 |
| Intersegment | 2 | 1 | 31 | (34) | — |
| Sales and service revenues | $655 | $1,434 | $750 | $(34) | $2,805 |
| Contract Type | |||||
| Firm fixed-price | $1 | $2 | $82 | $— | $85 |
| Fixed-price incentive | 586 | 788 | 2 | — | 1,376 |
| Cost-type | 66 | 643 | 593 | — | 1,302 |
| Time and materials | — | — | 42 | — | 42 |
| Intersegment | 2 | 1 | 31 | (34) | — |
| Sales and service revenues | $655 | $1,434 | $750 | $(34) | $2,805 |
| ($ in millions) | 2025 | 2024 |
|---|---|---|
| Major Programs | ||
| Amphibious assault ships | $332 | $352 |
| Surface combatants and coast guard cutters | 299 | 300 |
| Other | 6 | 3 |
| Total Ingalls | 637 | 655 |
| Aircraft carriers | 758 | 792 |
| Submarines | 516 | 516 |
| Other | 122 | 126 |
| Total Newport News | 1,396 | 1,434 |
| C5ISR; cyber, electronic warfare & space; live, virtual, and constructive training solutions | 628 | 626 |
| Other | 107 | 124 |
| Total Mission Technologies | 735 | 750 |
| Intersegment eliminations | (34) | (34) |
| Sales and service revenues | $2,734 | $2,805 |
As of March 31, 2025, the Company had $48.0 billion of remaining performance obligations. The Company expects to recognize approximately 40% of its remaining performance obligations as revenue through 2026, an additional 30% through 2028, and the balance thereafter.
Cumulative Catch-up Revenue Adjustments
The following table presents the effect of net cumulative catch-up revenue adjustments on operating income and diluted earnings per share:
| ($ in millions, except per share amounts) | 2025 | 2024 |
|---|---|---|
| Effect on operating income | $— | $2 |
| Effect on diluted earnings per share | $— | $0.03 |
For the three months ended March 31, 2025, cumulative catch-up revenue adjustments netted to zero, and did not have an effect on operating income or diluted earnings per share. The Company’s Newport News segment continues to experience performance challenges in the construction of aircraft carriers and Virginia class (SSN 774) submarines. For the three months ended March 31, 2025, cumulative catch-up revenue adjustments included significant unfavorable performance adjustments on the Enterprise(CVN 80) and Doris Miller (CVN 81) construction contract and the Virginia class (SSN 774) submarine program, which were offset by contract incentives.
For the three months ended March 31, 2024, no individual favorable or unfavorable cumulative catch-up revenue adjustment was material to the Company's unaudited condensed consolidated statements of operations and comprehensive income.
Contract Balances
The Company reports contract balances in a net contract asset or contract liability position on a contract-by-contract basis at the end of each reporting period. Net contract assets were comprised as follows:
| ($ in millions) | March 31, 2025 | December 31, 2024 |
|---|---|---|
| Contract assets | $2,017 | $1,683 |
| Contract liabilities | 647 | 774 |
| Net contract assets | $1,370 | $909 |
The Company’s net contract assets increased $461 million from December 31, 2024 to March 31, 2025, primarily as a result of the timing of billings across programs on certain U.S. Navy contracts. The Company recognized revenue related to its prior year-end contract liabilities of $552 million and $641 million for the three months ended March 31, 2025 and 2024, respectively.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.