HII - Huntington Ingalls Industries: The Future Remains Bright
2024-02-12 20:08:59 ET
Summary
- Huntington Ingalls Industries is the nation's largest Navy shipbuilder with three operating segments.
- HII's 2023 financial results were excellent, but influenced by a non-operating sale and a settlement.
- The outlook for 2024 is positive, with expected mid to long-term growth and strong free cash flow for dividends and buybacks.
Investment Thesis
Huntington Ingalls Industries ( HII ) is the nation’s largest shipbuilder. HII has three operating segments – Newport News building nuclear aircraft and submarines, Ingalls building surface ships and Mission Technologies providing a myriad of government services. Nearly all their 2023 revenue of $11.4 billion came from the US Government and the Navy. I have written a number of Seeking Alpha articles about HII in the past. Here is the latest written in March 2023. At the time I was concerned about the diminishing work and contracts at Ingalls. Since that time HII has received awards for seven DDG51 destroyers and another amphibious assault ship, all of which will be built at Ingalls. This is good news,...
Huntington Ingalls Industries: The Future Remains Bright