Huntington Ingalls (HII) Beats Q4 Revenue, EPS Estimates; Stock Falls 10.7% Post-Announce

Huntington Ingalls (NYSE:HII) reported Q4 CY2025 revenue of $3.48B, up 15.7% YoY, and GAAP EPS of $4.04/share, 3.7% above consensus, despite a 10.7% drop in its share price to $368.93 following the announcement. The company highlighted active shipbuilding at both Ingalls and Newport News with over 40 ships under construction or modernization. Revenue growth outpaced Wall Street’s 12.7% estimate, while two-year EPS growth averaged 5.2% and Q4 EPS rose 16% YoY. However, long-term performance remains mixed: 5-year revenue CAGR of 5.9% and EPS CAGR of 0% are below sector benchmarks; the 2-year average EPS decline of 5.2% and a stable operating margin of ~5.5% suggest pricing pressure and limited cost leverage. Sell-side analysts project 1.9% CAGR in revenue over the next 12 months and 16% growth in full-year EPS to $15.37.