Huntington Ingalls has delivered four consecutive earnings beats and holds roughly 13% upside to the analyst consensus target at a risk/reward of approximately 2.2-to-1 in your favor, but the business is almost entirely dependent on U.S. Navy contracts at below-average profitability margins, making the investment case contingent on sustained defense appropriations rather than competitive differentiation.
Thesis pillars
- Below Average Business Quality→Stable
- Perfect Four Quarter Beat Streak→Stable
- Analyst Upside Favorable Geometry↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Huntington Ingalls Industries, (HII) Stock Analysis
Industrials · Aerospace & Defense
Hold if already holding. Not a fresh buy at $319.90, but acceptable to hold if already in. Reasons: Concentration risk — Customer: U.S. Navy (81.0%); Concentration risk — Customer: U.S. Government.
HII is America's largest shipbuilder across three segments: Ingalls (non-nuclear ships), Newport News (nuclear carriers and submarines), and Mission Technologies (C5ISR and defense tech). Approximately 81% of revenues derive from the U.S. Navy, with substantially all revenues... Read more
Hold if already holding. Not a fresh buy at $319.90, but acceptable to hold if already in. Reasons: Concentration risk — Customer: U.S. Navy (81.0%); Concentration risk — Customer: U.S. Government. Chart setup: No clear chart pattern; technical signals are mixed. Downgraded from BUY WAIT — price $319.90 has reached target $314.24. No upside to wait for. Score 5.9/10, moderate confidence.
Passes 6/8 gates (positive momentum, clean insider activity, no SEC red flags, news boost earnings 0.70, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 0d<=7d. Suitability: moderate.
About Huntington Ingalls Industries,
About Huntington Ingalls Industries,
HII is America's largest shipbuilder and the only company capable of building, refueling, and inactivating U.S. Navy nuclear-powered aircraft carriers, with approximately 81% of 2025 revenues generated from the U.S. Navy alone. The company employs over 44,000 people at its Ingalls shipbuilding facility in Pascagoula, Mississippi, and the Newport News shipyard in Virginia. Active contracts include the Gerald R. Ford-class Enterprise (CVN 80) at 50% construction completion in 2025 and multi-year awards totaling $15.4 billion for Enterprise and Doris Miller (CVN 81).
HII generates revenue through long-term cost-type and fixed-price incentive contracts with the U.S. Government. In 2025, approximately 50% of revenues came from cost-type contracts and 46% from fixed-price incentive contracts, with the remainder from time-and-material and firm-fixed-price work. The Ingalls segment builds non-nuclear ships—amphibious assault ships (LHAs, LPDs) and Arleigh Burke-class destroyers (DDG 51)—for which HII is one of only two qualified shipbuilders alongside General Dynamics. Newport News is the exclusive nuclear carrier builder and a co-builder of Virginia-class (SSN 774) fast attack submarines under a teaming agreement with Electric Boat, a General Dynamics division. Mission Technologies provides C5ISR, cyber, AI, and unmanned systems capabilities. The principal cost risks on fixed-price programs are inflation, tariffs, labor shortages, and supplier issues; U.S. Government contracts sometimes permit cost recovery through equitable adjustment requests, though the government may dispute or lack funding to cover them.
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HII's dependence on U.S. Navy appropriations—81% of revenues in 2025—ties performance directly to annual Congressional budget cycles and continuing resolutions. The 10-K discloses that a partial federal government shutdown occurred in October 2025, and continuing resolutions restrict production increases and new program starts. Fixed-price incentive contracts (46% of revenues) amplify this exposure: inflation, tariffs, and labor shortages have caused contract cost growth in the past and may continue to do so, and if the company cannot recover those increases, operating income declines. In some cases, only one supplier exists for certain components, and a sole source supplier's failure to deliver on time could further escalate costs on time-sensitive naval programs.
See also: Industrials · Aerospace & Defense
From Huntington Ingalls Industries, 's most recent 10-K filing, extracted June 10, 2026.
Recent developments
updated 2026-07-31Recent Developments — Huntington Ingalls Industries,
Latest news
- NEWS Huntington Ingalls to Post Q2 Earnings: What's in the Cards? - Yahoo Finance — Yahoo Finance neutral
- NEWS Huntington Ingalls (HII) To Report Earnings Tomorrow: Here Is What To Expect - Yahoo Finance — Yahoo Finance neutral
- NEWS A Look at Huntington Ingalls Industries Inc (HII) After 4.0% Gai - GuruFocus — GuruFocus positive
- NEWS Huntington Ingalls Industries, Inc. (NYSE:HII) Plans $1.38 Quarterly Dividend - MarketBeat — MarketBeat neutral
- NEWS Sanctuary Advisors LLC Buys 3,071 Shares of Huntington Ingalls Industries, Inc. $HII - MarketBeat — MarketBeat neutral
Generated 2026-07-31T07:18:51Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCustomerU.S. Navy81%10-K Item 1: 'approximately 81%, 80%, and 81%, respectively, of our revenues were generated from the U.S. Navy'
- HIGHCustomerU.S. Government10-K Item 1A: 'Substantially all of our revenues in 2025 was derived from products and services sold to the U.S. Government'
- HIGHSuppliersole source supplier10-K Item 1A: 'only one supplier may exist for certain components and parts required to manufacture our products. The inability of a sole source supplier'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $319.90, but acceptable to hold if already in. Reasons: Concentration risk — Customer: U.S. Navy (81.0%); Concentration risk — Customer: U.S. Government. Chart setup: No clear chart pattern; technical signals are mixed. Downgraded from BUY WAIT — price $319.90 has reached target $314.24. No upside to wait for. Target $314.24 (-1.8%), stop $255.71 (−25.1%), A.R:R -0.1:1. Score 5.9/10, moderate confidence.
Take-profit target: $314.24 (-1.0% upside). Target $314.24 (-1.8%), stop $255.71 (−25.1%), A.R:R -0.1:1. Stop-loss: $255.71.
Concentration risk — Customer: U.S. Navy (81.0%); Concentration risk — Customer: U.S. Government; Analyst target reached - limited upside remaining.
Huntington Ingalls Industries, trades at a P/E of 19.5 (forward 13.9). TrendMatrix value score: 6.6/10. Verdict: Hold.
17 analysts cover HII with a consensus score of 3.6/5. Average price target: $364.
What does Huntington Ingalls Industries, do?HII is America's largest shipbuilder across three segments: Ingalls (non-nuclear ships), Newport News (nuclear carriers...
HII is America's largest shipbuilder across three segments: Ingalls (non-nuclear ships), Newport News (nuclear carriers and submarines), and Mission Technologies (C5ISR and defense tech). Approximately 81% of revenues derive from the U.S. Navy, with substantially all revenues sourced from the U.S. Government; the company employs over 44,000 people. HII is the sole builder of U.S. nuclear aircraft carriers and one of only two companies qualified to build nuclear submarines.