HUNTINGTON INGALLS INDUSTRIES, INC.

6. REVENUE

Disaggregation of Revenue

The following tables present revenues on a disaggregated basis:

As of June 30, 2026, the Company had $57.3 billion of remaining performance obligations. The Company expects to recognize approximately 35% of its remaining performance obligations as revenue through 2027, an additional 35% through 2029, 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:

(1)For each of the three and six months ended June 30, 2026 and 2025, the effect of net cumulative catch-up revenue adjustments on operating income is materially consistent with the effect on revenue.

For the three months ended June 30, 2026, cumulative catch-up revenue adjustments included a favorable adjustment of $28 million on the refueling and complex overhaul ("RCOH") of USS John C. Stennis (CVN 74) at the Company's Newport News segment.

For the three months ended June 30, 2026, cumulative catch-up revenue adjustments included an unfavorable adjustment of $48 million on the RCOH of USSGeorge Washington (CVN 73) at the Company's Newport News segment.

For the six months ended June 30, 2026, 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 six months ended June 30, 2026, cumulative catch-up revenue adjustments included an unfavorable adjustment of $48 million on the RCOH of USSGeorge Washington (CVN 73) at the Company's Newport News segment.

For the three months ended June 30, 2025, cumulative catch-up revenue adjustments included a favorable adjustment of $32 million on the Arleigh Burke class (DDG 51) multi-year construction contract awarded in 2018 at the Company's Ingalls segment.

For the three months ended June 30, 2025, cumulative catch-up revenue adjustments included unfavorable adjustments of $42 million on the Enterprise(CVN 80) and Doris Miller (CVN 81) construction contract at the Company's Newport News segment and $20 million on the Bougainville (LHA 8) construction contract at the Company's Ingalls segment.

For the six months ended June 30, 2025, cumulative catch-up revenue adjustments included a favorable adjustment of $33 million on the Arleigh Burke class (DDG 51) multi-year construction contract awarded in 2018 at the Company's Ingalls segment.

For the six months ended June 30, 2025, cumulative catch-up revenue adjustments included an unfavorable adjustment of $43 million on the Enterprise(CVN 80) and Doris Miller (CVN 81) construction contract at the Company's Newport News segment.

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:

The Company’s net contract assets increased $926 million from December 31, 2025 to June 30, 2026, primarily as a result of the timing of billings across programs on certain U.S. Navy contracts. For the three and six months ended June 30, 2026, the Company recognized revenue of $197 million and $955 million, respectively, related to its contract liabilities as of December 31, 2025. For the three and six months ended June 30, 2025, the Company recognized revenue of $52 million and $604 million, respectively, related to its contract liabilities as of December 31, 2024.