AI Takeaway
HII delivered strong FY2025 results with revenue rising 8.2% to $12.5B and operating income surging 22.8% to $657M, while operating cash flow more than tripled to $1.2B, reflecting improved execution across its shipbuilding and defense segments.
Revenue
$12.48B
++8.23% YoY
EPS (Basic)
$15.39
++10.24% YoY
Operating Income
$657M
++22.80% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
HII's total revenue grew 8.2% year-over-year from $11.5B to $12.5B in FY2025, reflecting sustained demand for naval shipbuilding and defense technology services as the U.S. government continues to prioritize fleet modernization and national security programs.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Operating income increased 22.8% to $657M, pushing the operating margin from 4.6% to 5.3%, suggesting improved cost management and program execution efficiency despite the capital-intensive nature of shipbuilding contracts.
Source: Source: 10-K Income Statement & Key Ratios (XBRL Financial Data)
Operating cash flow surged 204.3% year-over-year from $393M to $1.196B, a dramatic improvement that signals better working capital management, favorable contract billing timing, and stronger collections from government customers.
Source: Source: 10-K Cash Flow Statement (XBRL Financial Data)
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Upgrade to unlockHII derives the vast majority of its revenue from U.S. government contracts, particularly the U.S. Navy. Any reduction in defense appropriations, continuing resolutions, or program cancellations could materially impact revenue and backlog. The company has limited ability to diversify away from this single customer base.
Source: Source: 10-K Risk Factors (XBRL Financial Data, inferred from business model)
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Upgrade to unlockReported EPS of $4.04 versus the $3.92 analyst consensus — a +3.1% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $12.48B | $11.54B | +8.23% |
Operating Income | $657M | $535M | +22.80% |
Net Income | $605M | $550M | +10.00% |
EPS (Basic) | $15.39 | $13.96 | +10.24% |
EPS (Diluted) | $15.39 | $13.96 | +10.24% |
R&D Expense | $26M | $27M | -3.70% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $12.75B | $12.14B | +5.01% |
Current Assets | $3.45B | $3.23B | +6.91% |
Total Liabilities | $7.68B | $7.47B | +2.69% |
Current Liabilities | $3.04B | $2.99B | +1.81% |
Stockholders' Equity | $5.07B | $4.67B | +8.72% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.2B | $393M | +204.33% |
Investing Cash Flow | $-521M | $-348M | -49.71% |
Financing Cash Flow | $-732M | $356M | -305.62% |
D&A | $329M | $326M | +0.92% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 5.3% | 4.6% | +0.62% |
Net Margin | 4.8% | — | — |
ROE | 11.9% | — | — |
ROA | 4.7% | — | — |
Current Ratio | $1.133 | — | — |
Debt to Equity | $1.513 | — | — |
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HII had a strong FY2025, with revenue growing 8.2% to $12.5B and net income rising 10.0% to $605M. Operating cash flow was a particular highlight, surging over 200% to $1.196B, reflecting improved contract execution and collections.
HII's 8.2% revenue increase to $12.5B in FY2025 was driven by sustained U.S. government demand for naval shipbuilding and defense technology services. The company benefits from long-term contracts tied to U.S. Navy fleet modernization programs.
Yes, HII's operating margin expanded from 4.6% to 5.3% in FY2025, with operating income jumping 22.8% to $657M. Net margin came in at 4.8%, reflecting solid bottom-line conversion despite the cost-intensive nature of shipbuilding.
Key risks for HII include heavy concentration in U.S. government contracts (primarily the U.S. Navy), potential cost overruns on fixed-price shipbuilding programs, and meaningful financial leverage with a debt-to-equity ratio of 1.51. Labor availability and skilled workforce retention also pose operational risks given the specialized nature of shipbuilding.
HII enters FY2026 in solid financial shape, with stockholders' equity of $5.07B, a current ratio of 1.13, and free cash flow of approximately $675M. However, the debt-to-equity ratio of 1.51 warrants monitoring, and the thin operating margin of 5.3% leaves limited buffer against cost pressures or program delays.