HII's third-quarter revenue grew 10.8% year on year to $3.5 billion, and operating margin jumped 2 points to 7%, yielding $246 million of profit. With a giant contract for 14 nuclear subs awarded by the Navy, management upped its 2026 shipbuilding revenue expectation to $10.5 billion-$10.7 billion.
The National Defense Strategy prioritizes modernizing the military to counter potential great power or near-peer adversaries. We think this will increase the proportion of the defense budget available to contractors.
Design, production, and testing delays on large ship programs are common and can seriously dent HII's financials, especially from one quarter to the next.
Metric | HII | GD | LMT |
|---|---|---|---|
Price/Earnings (Normalized) | 17.75 | 20.96 | 19.55 |
Price/Book Value | 2.08 | 3.53 | 13.21 |
Price/Sales | 0.84 | 1.73 | 1.68 |
Price/Cash Flow | 8.71 | 18.80 | 14.21 |
Metric | HII | GD | LMT |
|---|---|---|---|
Quick Ratio | 1.14 | 0.84 | 1.06 |
Current Ratio | 1.26 | 1.43 | 1.26 |
Interest Coverage | 10.06 | 18.75 | 8.03 |
Metric | HII | GD | LMT |
|---|---|---|---|
Return on Assets (Normalized) | 6.01% | 8.22% | 11.13% |
Return on Equity (Normalized) | 14.62% | 18.57% | 86.91% |
Return on Invested Capital (Normalized) | 10.35% | 14.09% | 26.73% |
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United States