HII · 10-Q · 2026Q3 · Full report

Operating Expense Trends

HUNTINGTON INGALLS INDUSTRIES, INC. · 2026-10-29 · Importance 23 · Surprise 22

General and administrative expenses increased $12 million in the third quarter and $25 million in the first nine months of 2026 versus the same 2025 periods, primarily because of higher overhead costs. Segment cost of product sales increased $861 million, or 17%, in the first nine months, mainly reflecting higher production volumes in aircraft carriers, submarines, amphibious assault ships, and surface combatants. Segment cost of service revenues increased $45 million, or 2%, in the first nine months, reflecting higher service volumes, partly offset by lower Global Security and All-Domain Operations volumes.

Key facts

• The non-operating retirement benefit was $53 million and $159 million for the three and nine months ended September 30, 2026, respectively, compared with $48 million and $143 million in the same 2025 periods; the favorable changes were primarily driven by higher 2025 asset returns. source
• The Operating FAS/CAS Adjustment was a net expense of $12 million in the third quarter of 2026 versus $9 million in 2025, and $29 million in the first nine months of 2026 versus $25 million in 2025; the unfavorable change was primarily driven by higher asset returns in 2025. source
• Other, net income was $2 million and $22 million for the three and nine months ended September 30, 2026, versus $18 million and $30 million in 2025; the decreases were primarily driven by lower unrealized gains on investments. source
• General and administrative expenses for the three and nine months ended September 30, 2026 increased $12 million and $25 million, respectively, from 2025, primarily due to higher overhead costs. source
• As of September 30, 2026, HII reported no material changes to its critical accounting policies, estimates, and judgments since December 31, 2025. source