Huntington Ingalls Industries (HII) 10-K Summary — Year Ended Dec 31, 2024
Huntington Ingalls Industries reported flat revenue growth and a decline in net earnings and operating cash flow for the latest annual period. The company faces material risks from contract performance, cybersecurity, and supply chain disruptions.
Key takeaway
Year ended Dec 31, 2024 · FY2025 10-K
Huntington Ingalls Industries reported flat revenue growth and a decline in net earnings and operating cash flow for the latest annual period. The company faces material risks from contract performance, cybersecurity, and supply chain disruptions.
Financial snapshot
Selected annual figures reported with the filing, shown separately from the narrative summary.
Annual revenue
$11.5B
Revenue reported for the fiscal year.
Operating income
$535M
Income from operations reported for the year.
Net income
$550M
Net income reported for the year.
Operating cash flow
$393M
Cash generated by operating activities.
Annual revenue trend
Reported annual revenue and its change from the preceding fiscal year.
| Period ended | Revenue | Year-over-year change |
|---|---|---|
| Dec 31, 2021 | $9.5B | n/a |
| Dec 31, 2022 | $10.7B | +12.1% |
| Dec 31, 2023 | $11.5B | +7.3% |
| Dec 31, 2024 | $11.5B | +0.7% |
Business overview
Huntington Ingalls Industries is a defense contractor that designs, builds, and maintains naval ships and provides related services. The company operates through segments focused on shipbuilding, nuclear propulsion, and fleet support. Its primary customer is the U.S. government, particularly the Navy.
Financial performance
Revenue remained essentially flat compared to the prior year, while operating income and net income both decreased. Operating cash flow declined significantly, driven by a large increase in trade working capital usage. The company's net earnings fell year over year.
Material risks
The filing identifies risks related to fixed-price contracts, which could lead to cost overruns and reduced profitability. Cybersecurity threats and supply chain disruptions are also cited as material risks. Additionally, the company's dependence on U.S. government contracts exposes it to budget and policy changes.
Liquidity and capital
The company aims to convert operating results into cash for business operations, strategy implementation, and maximizing stockholder value. It uses net cash from operations and free cash flow to inform capital deployment, and maintains a mix of equity and debt financing to optimize returns and pursue acquisitions.
What to watch
Monitor the trend in trade working capital, as a large increase significantly reduced operating cash flow in the latest period.