HUNTINGTON INGALLS INDUSTRIES, INC.
For the period ended Sep 30, 2025. Filed Oct 30, 2025.
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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.
Sep 30, 2025 · Filed Oct 30, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
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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 | $697 | $1,330 | $45 | $— | $2,072 |
| Service revenues | 128 | 287 | 705 | — | 1,120 |
| Intersegment | 3 | — | 37 | (40) | — |
| Sales and service revenues | $828 | $1,617 | $787 | $(40) | $3,192 |
| Customer Type | |||||
| Federal | $825 | $1,617 | $747 | $— | $3,189 |
| Commercial | — | — | 3 | — | 3 |
| Intersegment | 3 | — | 37 | (40) | — |
| Sales and service revenues | $828 | $1,617 | $787 | $(40) | $3,192 |
| Contract Type | |||||
| Firm fixed-price | $6 | $1 | $96 | $— | $103 |
| Fixed-price incentive | 692 | 819 | 1 | — | 1,512 |
| Cost-type | 127 | 797 | 618 | — | 1,542 |
| Time and materials | — | — | 35 | — | 35 |
| Intersegment | 3 | — | 37 | (40) | — |
| Sales and service revenues | $828 | $1,617 | $787 | $(40) | $3,192 |
| ($ in millions) | Ingalls | Newport News | Mission Technologies | Intersegment Eliminations | Total |
|---|---|---|---|---|---|
| Revenue Type | |||||
| Product sales | $569 | $1,163 | $29 | $— | $1,761 |
| Service revenues | 93 | 249 | 646 | — | 988 |
| Intersegment | 2 | — | 34 | (36) | — |
| Sales and service revenues | $664 | $1,412 | $709 | $(36) | $2,749 |
| Customer Type | |||||
| Federal | $662 | $1,412 | $673 | $— | $2,747 |
| Commercial | — | — | 2 | — | 2 |
| Intersegment | 2 | — | 34 | (36) | — |
| Sales and service revenues | $664 | $1,412 | $709 | $(36) | $2,749 |
| Contract Type | |||||
| Firm fixed-price | $— | $1 | $83 | $— | $84 |
| Fixed-price incentive | 568 | 753 | 3 | — | 1,324 |
| Cost-type | 94 | 658 | 543 | — | 1,295 |
| Time and materials | — | — | 46 | — | 46 |
| Intersegment | 2 | — | 34 | (36) | — |
| Sales and service revenues | $664 | $1,412 | $709 | $(36) | $2,749 |
| ($ in millions) | Ingalls | Newport News | Mission Technologies | Intersegment Eliminations | Total |
|---|---|---|---|---|---|
| Revenue Type | |||||
| Product sales | $1,833 | $3,809 | $100 | $— | $5,742 |
| Service revenues | 346 | 806 | 2,114 | — | 3,266 |
| Intersegment | 10 | 1 | 99 | (110) | — |
| Sales and service revenues | $2,189 | $4,616 | $2,313 | $(110) | $9,008 |
| Customer Type | |||||
| Federal | $2,179 | $4,614 | $2,204 | $— | $8,997 |
| Commercial | — | 1 | 9 | — | 10 |
| State and local government agencies | — | — | 1 | — | 1 |
| Intersegment | 10 | 1 | 99 | (110) | — |
| Sales and service revenues | $2,189 | $4,616 | $2,313 | $(110) | $9,008 |
| Contract Type | |||||
| Firm fixed-price | $11 | $5 | $297 | $— | $313 |
| Fixed-price incentive | 1,823 | 2,393 | 4 | — | 4,220 |
| Cost-type | 345 | 2,216 | 1,806 | — | 4,367 |
| Time and materials | — | 1 | 107 | — | 108 |
| Intersegment | 10 | 1 | 99 | (110) | — |
| Sales and service revenues | $2,189 | $4,616 | $2,313 | $(110) | $9,008 |
| ($ in millions) | Ingalls | Newport News | Mission Technologies | Intersegment Eliminations | Total |
|---|---|---|---|---|---|
| Revenue Type | |||||
| Product sales | $1,786 | $3,602 | $86 | $— | $5,474 |
| Service revenues | 240 | 777 | 2,040 | — | 3,057 |
| Intersegment | 5 | 2 | 98 | (105) | — |
| Sales and service revenues | $2,031 | $4,381 | $2,224 | $(105) | $8,531 |
| Customer Type | |||||
| Federal | $2,026 | $4,378 | $2,120 | $— | $8,524 |
| Commercial | — | 1 | 5 | — | 6 |
| State and local government agencies | — | — | 1 | — | 1 |
| Intersegment | 5 | 2 | 98 | (105) | — |
| Sales and service revenues | $2,031 | $4,381 | $2,224 | $(105) | $8,531 |
| Contract Type | |||||
| Firm fixed-price | $2 | $5 | $250 | $— | $257 |
| Fixed-price incentive | 1,784 | 2,353 | 8 | — | 4,145 |
| Cost-type | 240 | 2,021 | 1,735 | — | 3,996 |
| Time and materials | — | — | 133 | — | 133 |
| Intersegment | 5 | 2 | 98 | (105) | — |
| Sales and service revenues | $2,031 | $4,381 | $2,224 | $(105) | $8,531 |
| Three Months Ended September 30 | Nine Months Ended September 30 | |||
|---|---|---|---|---|
| ($ in millions) | 2025 | 2024 | 2025 | 2024 |
| Major Programs | ||||
| Amphibious assault ships | $375 | $358 | $1,031 | $1,123 |
| Surface combatants and coast guard cutters | 448 | 304 | 1,144 | 901 |
| Other | 5 | 2 | 14 | 7 |
| Total Ingalls | 828 | 664 | 2,189 | 2,031 |
| Aircraft carriers | 854 | 768 | 2,406 | 2,391 |
| Submarines | 617 | 522 | 1,796 | 1,601 |
| Other | 146 | 122 | 414 | 389 |
| Total Newport News | 1,617 | 1,412 | 4,616 | 4,381 |
| C5ISR; cyber, electronic warfare & space; live, virtual, and constructive training solutions | 665 | 593 | 1,961 | 1,857 |
| Other | 122 | 116 | 352 | 367 |
| Total Mission Technologies | 787 | 709 | 2,313 | 2,224 |
| Intersegment eliminations | (40) | (36) | (110) | (105) |
| Sales and service revenues | $3,192 | $2,749 | $9,008 | $8,531 |
As of September 30, 2025, the Company had $55.7 billion of remaining performance obligations. The Company expects to recognize approximately 30% of its remaining performance obligations as revenue through 2026, an additional 30% through 2028, and the balance thereafter.
Cumulative Catch-up Revenue Adjustments
The following table presents the effect of net cumulative catch-up revenue adjustments on operating income and diluted earnings per share:
| Three Months Ended September 30 | Nine Months Ended September 30 | |||
|---|---|---|---|---|
| ($ in millions, except per share amounts) | 2025 | 2024 | 2025 | 2024 |
| Effect on operating income | $(3) | $(72) | $(13) | $(46) |
| Effect on diluted earnings per share | $(0.06) | $(1.42) | $(0.26) | $(0.91) |
For the three and nine months ended September 30, 2025, no individual favorable cumulative catch-up revenue adjustment was material to the Company's unaudited condensed consolidated statements of operations and comprehensive income.
For the three and nine months ended September 30, 2025, no individual unfavorable cumulative catch-up revenue adjustment was material to the Company's unaudited condensed consolidated statements of operations and comprehensive income.
For the three and nine months ended September 30, 2024, no individual favorable cumulative catch-up revenue adjustment was material to the Company's unaudited condensed consolidated statements of operations and comprehensive income.
For the three months ended September 30, 2024, cumulative catch-up revenue adjustments included unfavorable adjustments of $34 million on Block IV of the Virginia class (SSN 774) submarine program, $14 million on the refueling and complex overhaul ("RCOH") of USS John C. Stennis (CVN 74), and $16 million on the construction of Enterprise(CVN 80) and Doris Miller(CVN 81) at the Company's Newport News segment.
For the nine months ended September 30, 2024, no individual unfavorable cumulative catch-up revenue adjustment was material to the Company's unaudited condensed consolidated statements of operations and comprehensive income.
Contract Balances
The Company reports contract balances in a net contract asset or contract liability position on a contract-by-contract basis at the end of each reporting period. Net contract assets were comprised as follows:
| ($ in millions) | September 30, 2025 | December 31, 2024 |
|---|---|---|
| Contract assets | $1,869 | $1,683 |
| Contract liabilities | 893 | 774 |
| Net contract assets | $976 | $909 |
The Company’s net contract assets increased $67 million from December 31, 2024 to September 30, 2025, primarily as a result of the timing of billings across programs on certain U.S. Navy contracts. For the three and nine months ended September 30, 2025, the Company recognized revenue of $11 million and $615 million, respectively, related to its contract liabilities as of December 31, 2024. For the three and nine months ended September 30, 2024, the Company recognized revenue of $6 million and $930 million, respectively, related to its contract liabilities as of December 31, 2023.
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