Aerospace & Defense
Price
$291.50
+4.49%Market Cap
$11.49B
Day High
$291.92
Day Low
$282.75
HII reported Q1 2026 revenue of $3.10B (+13.4% YoY) driven by strong top-line growth, but operating income declined 3.7% to $155M as margin compression offset volume gains, while net income held flat at $149M and operating cash flow remained deeply negative at -$390M.
Key risk: Operating Margin Deterioration
HII's operating margin contracted from 5.9% to 5.0% YoY despite a 13.4% revenue increase, indicating that cost growth is outpacing revenue. If this trend continues, profitability could erode further even as the company wins more contracts. Shipbuilding cost overruns and labor inflation are likely contributors.
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