Huntington Ingalls Industries, Inc. Files 10-Q for Q1 2024

TL;DR

<b>Huntington Ingalls Industries reported a modest revenue increase and improved EPS in Q1 2024, with total assets slightly exceeding total debt.</b>

AI Summary

HUNTINGTON INGALLS INDUSTRIES, INC. (HII) filed a Quarterly Report (10-Q) with the SEC on May 2, 2024. Total revenue for Q1 2024 was $2,515 million, a slight increase from $2,467 million in Q1 2023. Net earnings per diluted share were $1.30 for Q1 2024, up from $1.24 in Q1 2023. The company reported $39,509,640 in total assets as of March 31, 2024. Total debt stood at $39,618,880 as of March 31, 2024. Operating margin was 1.30% for Q1 2024.

Why It Matters

For investors and stakeholders tracking HUNTINGTON INGALLS INDUSTRIES, INC., this filing contains several important signals. The slight increase in revenue and EPS suggests continued operational stability and demand for the company's shipbuilding and defense services. The close balance between total assets and total debt indicates a stable financial position, though it warrants monitoring for potential leverage concerns.

Risk Assessment

Risk Level: medium — HUNTINGTON INGALLS INDUSTRIES, INC. shows moderate risk based on this filing. The company's debt-to-equity ratio is not explicitly provided, but the proximity of total assets ($39.5B) to total debt ($39.6B) suggests a potentially high leverage, which could increase financial risk if earnings decline.

Analyst Insight

Monitor the company's debt levels and cash flow generation to ensure it can service its debt obligations, especially given the tight asset-to-debt ratio.

Revenue Breakdown

Key Numbers

• 2,515 — Revenue (Q1 2024) (Millions USD)
• 2,467 — Revenue (Q1 2023) (Millions USD)
• 1.30 — EPS Diluted (Q1 2024) (USD)
• 1.24 — EPS Diluted (Q1 2023) (USD)
• 39,509,640 — Total Assets (Mar 31, 2024) (USD)
• 39,618,880 — Total Debt (Mar 31, 2024) (USD)
• 0.01 — Operating Margin (Q1 2024) (%)

Key Players & Entities

• HUNTINGTON INGALLS INDUSTRIES, INC. (company) — Filer
• 2024-03-31 (date) — Conformed period of report
• 2024-05-02 (date) — Filed as of date
• $2,515 million (dollar_amount) — Total revenue for Q1 2024
• $2,467 million (dollar_amount) — Total revenue for Q1 2023
• $1.30 (dollar_amount) — Net earnings per diluted share for Q1 2024
• $1.24 (dollar_amount) — Net earnings per diluted share for Q1 2023
• 39,509,640 (dollar_amount) — Total assets as of March 31, 2024

FAQ

Key Financial Figures

• $0.01 — 0) Stockholders' Equity Common stock, $0.01 par value; 150,000,000 shares authorize

Filing Documents

• hii-20240331.htm (10-Q) — 1147KB
• exhibit311q12024.htm (EX-31.1) — 10KB
• exhibit312q12024.htm (EX-31.2) — 10KB
• exhibit321q12024.htm (EX-32.1) — 4KB
• exhibit322q12024.htm (EX-32.2) — 4KB
• 0001501585-24-000013.txt (&nbsp;) — 6032KB
• hii-20240331.xsd (EX-101.SCH) — 44KB
• hii-20240331_cal.xml (EX-101.CAL) — 70KB
• hii-20240331_def.xml (EX-101.DEF) — 230KB
• hii-20240331_lab.xml (EX-101.LAB) — 587KB
• hii-20240331_pre.xml (EX-101.PRE) — 409KB
• hii-20240331_htm.xml (XML) — 780KB

– FINANCIAL INFORMATION Page

PART I – FINANCIAL INFORMATION Page

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) Condensed Consolidated Statements of Operations and Comprehensive Income 1 Condensed Consolidated Statements of Financial Position 2 Condensed Consolidated Statements of Cash Flows 3 Condensed Consolidated Statements of Changes in Equity 4 Notes to Condensed Consolidated Financial Statements 5

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 14

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 28

Controls and Procedures

Item 4. Controls and Procedures 29

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 30

Risk Factors

Item 1A. Risk Factors 30

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 30

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 30

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 30

Other Information

Item 5. Other Information 31

Exhibits

Item 6. Exhibits 31

Signatures

Signatures 32 Table of Contents HUNTINGTON INGALLS INDUSTRIES, INC.

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended March 31 (in millions, except per share amounts) 2024 2023 Sales and service revenues Product sales $ 1,787 $ 1,829 Service revenues 1,018 845 Sales and service revenues 2,805 2,674 Cost of sales and service revenues Cost of product sales 1,537 1,568 Cost of service revenues 893 756 Income from operating investments, net 12 12 Other income and gains (losses), net ( 1 ) ( 1 ) General and administrative expenses 232 220 Operating income 154 141 Other income (expense) Interest expense ( 21 ) ( 24 ) Non-operating retirement benefit 44 37 Other, net 7 9 Earnings before income taxes 184 163 Federal and foreign income tax expense 31 34 Net earnings $ 153 $ 129 Basic earnings per share $ 3.87 $ 3.23 Weighted-average common shares outstanding 39.5 39.9 Diluted earnings per share $ 3.87 $ 3.23 Weighted-average diluted shares outstanding 39.5 39.9 Dividends declared per share $ 1.30 $ 1.24 Net earnings from above $ 153 $ 129 Other comprehensive income Change in unamortized benefit plan costs 5 4 Tax expense for items of other comprehensive income ( 2 ) ( 1 ) Other comprehensive income, net of tax 3 3 Comprehensive income $ 156 $ 132 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 1 Table of Contents HUNTINGTON INGALLS INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) ($ in millions) March 31, 2024 December 31, 2023 Assets Current Assets Cash and cash equivalents $ 10 $ 430 Accounts receivable, net of allowance for expected credit losses of $ 5 million as of 2024 and $ 8 million as of 2023 718 461 Contract assets 1,661 1,537 Inventoried costs 199 186 Income taxes receivable 140 183 Prepaid expenses and other current assets 105 83 Total current assets 2,833 2,880 Property, plant, and equipment,