HII · 10-Q · 2026Q3 · Full report

Operating Cash Flow Trends

HUNTINGTON INGALLS INDUSTRIES, INC. · 2026-10-29 · Importance 79 · Surprise 64 · Matches filing data

Net cash provided by operating activities was $99 million for the nine months ended September 30, 2026, versus $546 million in the comparable 2025 period, a decline of $447 million. The decrease primarily reflected an unfavorable $562 million year-over-year change in trade working capital, driven by the timing of billings across programs, partly offset by lower cash income-tax payments. Net cash used in investing activities was $280 million, compared with $387 million in 2025, primarily because the prior-year period included a business acquisition. Net cash used in financing activities was $206 million, compared with $678 million in 2025, primarily because the prior-year period included long-term debt repayment.

Key facts

• Net cash provided by operating activities for the nine months ended September 30, 2026, was $99 million, compared with $546 million in 2025; the decrease was primarily due to unfavorable trade working capital from billing timing, partly offset by lower income tax payments. source
• Net cash used in financing activities for the nine months ended September 30, 2026, was $206 million, compared with $678 million in 2025; the change was primarily due to repayment of long-term debt in 2025. source
• HII expects operating cash generation, current cash and cash equivalents, and existing borrowing facilities to be sufficient to service debt and retiree benefit plans, meet contractual obligations, and fund capital expenditures for at least the 12 months beginning October 1, 2026, and beyond based on current business plans. source
• Interest expense was $26 million for the three months ended September 30, 2026, versus $23 million in 2025; the increase was driven by higher commercial paper borrowings. source
• Interest expense was $75 million for the nine months ended September 30, 2026, versus $79 million in 2025; the decrease was driven by lower outstanding long-term debt. source
• As of September 30, 2026, $10 million in letters of credit were issued but undrawn and $282 million of surety bonds were outstanding. source

Impact estimates