HII · 10-Q · 2026Q3 · Full report

Free Cash Flow and Capex

HUNTINGTON INGALLS INDUSTRIES, INC. · 2026-10-29 · Importance 48 · Surprise 24 · In source text

Free cash flow for the nine months ended September 30, 2026 decreased $466 million from the same period in 2025, primarily because of unfavorable working-capital timing, partly offset by lower cash taxes. Capital expenditure additions were $288 million in the 2026 period, up $20 million from 2025. For 2026, HII expects maintenance and sustainment capital expenditures of approximately 1.0%–1.5% of annual revenues and discretionary capital expenditures of approximately 2.5%–3.0%. The company expects capital expenditures to increase as it invests to expand shipbuilding capacity.

Key facts

• Free cash flow for the nine months ended September 30, 2026, decreased $466 million from the same period in 2025, primarily due to unfavorable trade working capital from billing timing, partly offset by lower cash income tax payments. source
• Net cash used in investing activities for the nine months ended September 30, 2026, was $280 million, compared with $387 million in 2025; the change was primarily driven by a business acquisition in 2025. source

Impact estimates