Huntington Ingalls Industries reported third‑quarter 2025 results that included $3.2 billion in revenue, a 16.1% year‑over‑year increase, and operating income of $161 million, giving an operating margin of 5.0% versus 3.0% in the same period a year earlier.
The company’s three business units all posted growth. Ingalls Shipbuilding generated $828 million in revenue, up 24.7%, with operating income of $65 million and a 7.9% margin. Newport News Shipbuilding reported $1.6 billion in revenue, up 14.5%, and operating income of $80 million, yielding a 4.9% margin. Mission Technologies earned $787 million in revenue, up 11.0%, with operating income of $34 million and a 4.3% margin.
New contract awards totaled $2.0 billion during the quarter, raising the backlog to $55.7 billion as of September 30, 2025. Net cash from operating activities was $118 million, down from $213 million a year earlier, while free cash flow was $16 million versus $136 million previously.
Management reiterated its fiscal 2025 guidance, raising the free‑cash‑flow range to $550 million–$650 million and projecting shipbuilding revenue of $9.0 billion–$9.1 billion. The company highlighted ongoing throughput improvements and cost‑reduction initiatives that contributed to margin expansion, particularly in Newport News Shipbuilding where operating income rose from $15 million in Q3 2024 to $80 million in Q3 2025.
Huntington Ingalls remains the largest independent U.S. military shipbuilder, benefiting from sustained defense spending and naval modernization programs. The company is expanding capabilities in unmanned and autonomous systems and has entered a memorandum of agreement with HD Hyundai Heavy Industries to collaborate on shipbuilding projects. It also announced an artificial‑intelligence partnership with C3 AI to enhance design and production efficiencies.
The company’s performance reflects strong demand for destroyers, aircraft carriers, and submarines, while it continues to address supply‑chain constraints and labor challenges. The guidance update signals confidence in maintaining growth momentum amid a competitive industry landscape.
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