Revenue and Profit Expansion Driven by Naval Shipyard Volume
Sales and service revenues grew 10.9% YoY to $3.42B in Q2 FY2026, while operating income rose 28.8% to $210M, propelled by increased production volume in aircraft carriers, submarines, and amphibious assault ships at Newport News and Ingalls.
Strong Segment Growth at Newport News and Ingalls
Newport News revenue expanded 15% YoY to $1.85B with segment operating income up 35% to $111M due to aircraft carrier incentives and submarine volumes. Ingalls revenue increased 17% YoY to $845M driven by higher amphibious assault ship activity.
Record Backlog and Robust Contract Awards
Total contract backlog reached $57.3B as of June 30, 2026, up from $53.1B at year-end 2025, buoyed by $10.7B in new contract awards during the first six months of FY2026.