Shipbuilding Drives HII’s Revenue and Income Gains for 2025
•February 6, 2026
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Why It Matters
The results highlight accelerating demand for U.S. naval platforms, boosting HII's profitability and confirming the defense sector’s fiscal strength. Continued shipbuilding growth positions HII as a key supplier for the Navy’s modernization agenda.
Key Takeaways
- •FY25 revenue reached $12.5 bn, up 8.2%.
- •Shipbuilding throughput grew 14% across Ingalls, NNS.
- •Operating margin improved to 5.3% from 4.6%.
- •Mission Technologies revenue hit $3.0 bn, +3.6%.
- •2026 shipbuilding revenue forecast $9.7‑9.9 bn, higher margins.
Pulse Analysis
HII’s FY25 performance reflects a broader surge in U.S. defense spending, particularly for naval assets. The 14% jump in shipbuilding throughput signals that the Navy’s shipbuilding pipeline is healthier than in recent years, with both Ingalls and Newport News securing larger contracts for amphibious assault ships, surface combatants, submarines, and aircraft carriers. This uptick aligns with the Pentagon’s emphasis on fleet modernization and readiness, reinforcing HII’s status as a cornerstone of America’s maritime defense infrastructure.
Financially, HII’s revenue growth outpaced the industry average, while operating income rose to $657 million, pushing the operating margin to 5.3%. The modest margin expansion stems from improved production efficiency and higher‑value ship programs, offsetting cost pressures common in large‑scale defense projects. Mission Technologies, the company’s non‑ship segment, delivered $3.0 bn in revenue, adding diversification and cushioning the business against cyclical shipbuilding fluctuations. The segment’s 3.6% growth and targeted 5% revenue increase for 2026 illustrate HII’s strategic push into advanced technologies and services.
Looking ahead, HII’s guidance for 2026—shipbuilding revenues between $9.7 bn and $9.9 bn and operating margins approaching 6%—suggests continued momentum. The completion of sea trials for the USS John F Kennedy underscores the firm’s capability to deliver next‑generation carriers, a critical factor for future Navy contracts. Competitors will watch HII’s ability to sustain throughput while managing cost, as the defense budget remains robust but increasingly scrutinized for efficiency. For investors and industry observers, HII’s trajectory offers a clear signal of where U.S. naval procurement dollars are flowing and how a leading shipbuilder is positioning itself for the next decade of defense spending.
Shipbuilding drives HII’s revenue and income gains for 2025
HII achieved 14% shipbuilding throughput growth in 2025
HII has reported revenues of $12.5 bn for the full year 2025 (FY25), reflecting an 8.2 % increase over 2024, with growth observed in all business segments.
During the year, revenues at Ingalls Shipbuilding and Newport News Shipbuilding (NNS) increased 11.2 % and 9.0 %, respectively. HII recorded a 14 % increase in shipbuilding throughput in 2025.
Mission Technologies business generated $3.0 bn in revenue for the year, an increase of $107 m or 3.6 % from the prior fiscal.
HII operating income for the fiscal year ended 31 December 2025 rose to $657 m, up from $535 m in 2024, and the operating margin increased to 5.3 % from 4.6 %.
The company’s diluted earnings per share amounted to $15.39 in FY25, up from $13.96 in FY24.
In the fourth quarter of 2025, HII reported revenues of $3.5 bn, compared to $3.0 bn in the same period of the previous year.
Ingalls Shipbuilding posted revenues of $889 m over the quarter, driven by higher volumes in amphibious assault ships and surface combatants, and NNS’ quarterly revenues were $1.9 bn, due mainly to higher volumes in submarines and aircraft carriers.
Quote from HII president and CEO Chris Kastner:
“We made solid progress on our operational initiatives in 2025 and enter 2026 with strong momentum. With more than 40 ships at Ingalls and Newport News in active construction or modernisation, our focus in 2026 is clear: We must build on this momentum, and continue to increase our shipbuilding throughput.
The US Navy and all of our defence customers need our ships and technologies now more than ever and we are committed to delivering for our customer and the nation.”
Looking ahead, HII has outlined its financial expectations that include medium‑term revenue growth targets of around 6 % for both overall company revenue and shipbuilding revenue, with Mission Technologies expected to grow by approximately 5 %.
For the full year 2026, the company anticipates shipbuilding revenues between $9.7 bn and $9.9 bn with an operating margin forecasted between 5.5 % and 6.5 %.
Mission Technologies revenue is expected to range between $3.0 bn and $3.2 bn with a segment operating margin around 5 % and an EBITDA margin between 8.4 % and 8.6 %.
Recently, NNS completed builder’s sea trials for the John F Kennedy (CVN 79), the second vessel in the Gerald R Ford‑class series of nuclear‑powered aircraft carriers.
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