HII, the nation’s largest military shipbuilder and defense services provider, achieved a record-breaking financial performance in the third quarter of fiscal year 2025. The company reported a total revenue of $3.2 billion, representing a strong 16 percent increase year-over-year. This performance significantly surpassed analyst expectations of $2.96 billion.
The financial success was directly reflected in market reaction; HII’s stock price surged 7.45 percent in pre-market trading immediately following the earnings announcement, demonstrating investor confidence in the company’s trajectory. Furthermore, the defense giant posted earnings per share of $3.68, a 9.85 percent rise that topped analyst estimates of $3.35. Overall, the company generated $145 million in net earnings and achieved $179 million in segment operating income for the quarter.
Growth Drivers Across Key Segments
Strong sales growth across HII’s core business segments drove the record revenue figures. Shipbuilding sales jumped 18 percent, while the Mission Technologies division saw an 11 percent increase.
The shipbuilding segment remains a primary force:
- Newport News Shipbuilding delivered $1.6 billion in revenue.
- Ingalls Shipbuilding contributed $828 million in sales.
Mission Technologies reported $787 million in sales, fueled by robust performance in critical defense programs. These programs include unmanned systems, Command, Control, Communications, Computers, and Combat Systems (C5), Intelligence, Surveillance, and Reconnaissance (ISR), cyber operations, electronic warfare, and live virtual constructive training solutions.
HII actively focuses on operational enhancements to maintain this upward momentum. The company invests in infrastructure upgrades, utilizes increased outsourcing, and continues a rapid workforce expansion. HII onboarded more than 4,600 shipbuilders so far in 2025, which improves overall retention and experience levels at both Ingalls and Newport News yards.
Executive Commentary and Outlook
Chris Kastner, HII President and CEO, emphasized the focus on production efficiency during the company’s quarterly earnings call. He stated that the leadership team “continues to support the identification of strategies to increase throughput” across all shipbuilding programs, highlighting that the open-source nature of tools like Odyssey allows for seamless incorporation of new software technologies.
Looking forward, the company projects sustained growth. HII targets a 15 percent increase in throughput for 2025. It forecasts full-year 2025 shipbuilding revenue between $9.0 and $9.1 billion and Mission Technologies revenue in the range of $3.0 to $3.1 billion. Management also expects to generate a cumulative free cash flow of $1.2 billion over the 2025 to 2026 period.
