HII Reports Fourth Quarter and Full Year 2024 Results

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• Revenues were $3.0 billion in the fourth quarter, $11.5 billion in 2024
• Diluted earnings per share was $3.15 in the fourth quarter, $13.96 in 2024
• Backlog of $48.7 billion at year-end
• Achieved critical shipbuilding milestones in 2024, including delivery of Virginia-class submarine New Jersey (SSN 796) and amphibious transport dock Richard M. McCool Jr. (LPD 29)
• Mission Technologies secured awards with total contract value of over $12 billion in 2024

NEWPORT NEWS, Va., Feb. 06, 2025 (GLOBE NEWSWIRE) -- HII (NYSE: HII) reported fourth quarter 2024 revenues of $3.0 billion compared to $3.2 billion in the fourth quarter of 2023. The decrease was driven by lower volume at all segments compared to the prior year.

Segment operating income² in the fourth quarter of 2024 was $103 million and segment operating margin was 3.4%, compared to $330 million and 10.4%, respectively, in the fourth quarter of 2023. The decreases were driven by lower performance at Newport News Shipbuilding, as well as prior year results that included the benefit of both the sale of a favorable court judgment in Ingalls Shipbuilding results and the favorable settlement of an insurance claim in Mission Technologies results.

Fourth quarter 2024 operating income of $110 million and operating margin of 3.7%, compared to $312 million and 9.8%, respectively, in the fourth quarter of 2023.

Diluted earnings per share in the quarter was $3.15, compared to $6.90 in the fourth quarter of 2023.

For the full year, revenues of $11.5 billion increased less than 1% over 2023, due to higher volumes at Mission Technologies and Ingalls Shipbuilding, largely offset by lower volumes at Newport News Shipbuilding.

Segment operating income² in 2024 was $573 million and segment operating margin² was 5.0%, compared to $842 million and 7.4%, respectively, in 2023, the decrease was primarily driven by lower performance at Newport News Shipbuilding, as well as prior year results that included the benefit of both the sale of a favorable court judgment in Ingalls Shipbuilding results and the favorable settlement of an insurance claim in Mission Technologies results.

Operating income in 2024 was $535 million and operating margin was 4.6%, compared to $781 million and 6.8%, respectively, in 2023.

Diluted earnings per share for the full year was $13.96, compared to $17.07 in 2023.

Net cash provided by operating activities in 2024 was $393 million and free cash flow² was $40 million, compared to $970 million and $692 million, respectively, in 2023.

New contract awards in 2024 were approximately $12.1 billion, bringing total backlog to approximately $48.7 billion as of December 31, 2024.

Chris Kastner, HII's president and CEO, said, "We continue to make progress on ships put under contract pre-COVID, and are working diligently with our customers to put over $50 billion of new work under contract. Mission Technologies continued its strong track record of top line growth and margin expansion and secured an impressive $12 billion in total future contract value during 2024. We enter 2025 focused on our mission to deliver the world's most powerful ships and all-domain solutions in service of the nation.”

_{¹The financial outlook, expectations and other forward looking statements provided by the company for 2025 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 and reconciliations.}

Results of Operations

Segment Operating Results

Ingalls Shipbuilding

Ingalls Shipbuilding revenues for the fourth quarter of 2024 were $736 million, a decrease of $64 million, or 8.0%, from the same period in 2023, primarily driven by lower volumes in amphibious assault ships, partially offset by higher volumes in surface combatants.

Ingalls Shipbuilding segment operating income¹ for the fourth quarter of 2024 was $46 million and segment operating margin¹ was 6.3%, compared to $169 million and 21.1% in the same period in the prior year, respectively. These decreases were primarily driven by the favorable sale of a court judgment and a contract incentive for surface combatants in the same period in the prior year.

Ingalls Shipbuilding 2024 revenues were $2.8 billion, an increase of $15 million, or 0.5%, compared to 2023, primarily driven by higher volumes in surface combatants, partially offset by lower volumes in amphibious assault ships and the National Security Cutter (NSC) program.

Ingalls Shipbuilding segment operating income¹ in 2024 was $211 million and segment operating margin¹ was 7.6%, compared to $362 million and 13.2% in 2023, respectively. These decreases were primarily driven by the favorable sale of a court judgment in 2023 and lower performance on amphibious assault ships and surface combatants.

Key 2024 Ingalls Shipbuilding milestones:

• Delivered amphibious transport dock Richard M. McCool Jr. (LPD 29)
• 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
• Authenticated the keel of guided missile destroyer Sam Nunn (DDG 133)
• Undocked USS Zumwalt (DDG 1000)

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

Newport News Shipbuilding