HII · 10-Q · 2026Q3 · Full report

Margin Drivers

HUNTINGTON INGALLS INDUSTRIES, INC. · 2026-10-29 · Importance 46 · Surprise 56 · In source text

For the nine months ended September 30, 2026, Newport News segment operating income rose $84 million to $331 million, primarily due to Virginia-class submarine and aircraft-carrier contract adjustments and incentives, plus higher volumes. Ingalls operating income increased $1 million to $166 million as higher volumes offset contract adjustments in surface combatants in 2025; its third-quarter operating income fell $6 million to $59 million on lower surface-combatant performance. Mission Technologies operating income increased $51 million to $161 million, driven by a successful milestone, higher Unmanned Systems volumes, higher nuclear and environmental joint-venture equity income, and lower purchased-intangible amortization. Mission Technologies’ third-quarter operating income rose to $71 million from $34 million, while Newport News’ rose to $132 million from $80 million.

Key facts

• Segment cost of product sales increased $861 million, or 17%, in the nine months ended September 30, 2026, primarily due to higher volumes. source
• Segment cost of product sales increased $283 million, or 16%, in the three months ended September 30, 2026, primarily due to higher volumes. source
• Newport News segment operating income was $132 million in the three months ended September 30, 2026, versus $80 million in 2025, primarily due to Virginia-class submarine contract adjustments and incentives and higher volumes. source
• Newport News segment operating income was $331 million in the nine months ended September 30, 2026, versus $247 million in 2025, primarily due to Virginia-class submarine and aircraft carrier contract adjustments and incentives and higher volumes. source
• Segment cost of service revenues increased $45 million, or 2%, in the nine months ended September 30, 2026, primarily due to higher volumes. source
• Mission Technologies segment operating income was $71 million in the three months ended September 30, 2026, versus $34 million in 2025, primarily due to a successful milestone, higher Unmanned Systems volumes, and higher equity income from nuclear and environmental joint ventures. source
• Mission Technologies segment operating income was $161 million in the nine months ended September 30, 2026, versus $110 million in 2025, primarily due to a successful milestone, higher Unmanned Systems volumes and joint venture equity income, and lower purchased intangible amortization. source
• Segment cost of service revenues decreased $27 million, or 3%, in the three months ended September 30, 2026, primarily due to lower volumes. source

Impact estimates