EX-99.1 2 hii2025q1earningsrelease.htm EX-99.1 Document
hii_logox2023xlogoa.jpg
Exhibit 99.1

News Release
Contacts:
Brooke Hart (Media)        
brooke.hart@hii-co.com
202-264-7108
        
Christie Thomas (Investors)
christie.thomas@hii-co.com
757-380-2104            


HII Reports First Quarter 2025 Results

NEWPORT NEWS, Va. (May 1, 2025) - HII (NYSE: HII) today reported results for the first quarter of fiscal 2025.

Highlights
•First quarter revenues were $2.7 billion
•First quarter net earnings were $149 million or $3.79 diluted earnings per share
•New contract awards of $2.1 billion, resulting in backlog of $48 billion
•Company reaffirms previously issued financial guidance1

First Quarter Results
First quarter 2025 revenues of $2.7 billion were down 2.5% from the first quarter of 2024, driven by lower volume at Newport News Shipbuilding, Ingalls Shipbuilding and Mission Technologies.

Operating income in the first quarter of 2025 was $161 million and operating margin was 5.9%, compared to $154 million and 5.5%, respectively, in the first quarter of 2024. The increases were primarily driven by a more favorable operating FAS/CAS adjustment, as well as better segment operating results compared to the prior year.

Segment operating income2 in the first quarter of 2025 was $171 million and segment operating margin2 was 6.3%, compared to $170 million and 6.1%, respectively, in the first quarter of 2024. The increases were driven primarily by stronger results at Mission Technologies and Newport News Shipbuilding, largely offset by results at Ingalls Shipbuilding.

Net earnings in the quarter were $149 million, compared to $153 million in the first quarter of 2024. Diluted earnings per share in the quarter was $3.79, compared to $3.87 in the first quarter of 2024.

Net cash used in operating activities in the quarter was $395 million and free cash flow2 was negative $462 million, compared to net cash used in operating activities of $202 million and free cash flow1 of negative $274 million in the first quarter of 2024.

New contract awards in the first quarter of 2025 were $2.1 billion, bringing total backlog to approximately $48.0 billion as of March 31, 2025.


“We are encouraged by the pace of our operational initiatives in 2025. We expect throughput to ramp as we move through the year and, coupled with our cost savings initiatives, we expect steady improvement in support of our operational and financial goals. We are also very supportive of the administration's commitment to expand our nation's shipbuilding capabilities and the maritime industrial base," said Chris Kastner, HII’s president and CEO.





1The financial outlook, expectations and other forward looking statements provided by the company for 2025 and beyond reflect the company's judgment based on information available at the time of this release.

2Non-GAAP measures. See Exhibit B for definitions and reconciliations.









HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 1 of 12


Results of Operations
Three Months Ended
March 31
($ in millions, except per share amounts)20252024$ Change% Change
Sales and service revenues$2,734 $2,805 $(71)(2.5)%
Operating income161 154 7 4.5 %
  Operating margin %5.9 %5.5 %40 bps
Segment operating income1
171 170 1 0.6 %
  Segment operating margin %1
6.3 %6.1 %19 bps
Net earnings149 153 (4)(2.6)%
Diluted earnings per share$3.79 $3.87 $(0.08)(2.1)%
1 Non-GAAP measures that exclude non-segment factors affecting operating income. See Exhibit B for definitions and reconciliations.

Segment Operating Results
Ingalls Shipbuilding
Three Months Ended
March 31
($ in millions)20252024$ Change% Change
Revenues$637 $655 $(18)(2.7)%
Segment operating income46 60 (14)(23.3)%
Segment operating margin %7.2 %9.2 %(194) bps

Ingalls Shipbuilding revenues for the first quarter of 2025 were $637 million, a decrease of $18 million, or 2.7%, from the same period in 2024, primarily driven by lower volumes in amphibious assault ships.

Ingalls Shipbuilding segment operating income for the first quarter of 2025 was $46 million, a decrease of $14 million from the same period in 2024. Segment operating margin in the first quarter of 2025 was 7.2%, compared to 9.2% in the same period last year. The decreases were primarily driven by lower performance on amphibious assault ships.


Key Ingalls Shipbuilding milestones for the quarter:
•Launched guided missile destroyer Jeremiah Denton (DDG 129)
•Christened amphibious transport dock Harrisburg (LPD 30)
•Began fabrication of amphibious transport dock Philadelphia (LPD 32)


























HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 2 of 12



Newport News Shipbuilding
Three Months Ended
March 31
($ in millions)20252024$ Change% Change
Revenues$1,396 $1,434 $(38)(2.6)%
Segment operating income85 82 3 3.7 %
Segment operating margin %6.1 %5.7 %37 bps

Newport News Shipbuilding revenues for the first quarter of 2025 were $1.4 billion, a decrease of $38 million, or 2.6%, from the same period in 2024. The decrease was primarily driven by lower volumes in aircraft carriers and naval nuclear support services, partially offset by higher volumes in the Columbia-class submarine program.

Newport News Shipbuilding segment operating income for the first quarter of 2025 was $85 million, an increase of $3 million from the same period in 2024. Segment operating margin in the first quarter of 2025 was 6.1% compared to 5.7% in the same period last year. The increases were primarily driven by contract incentives on the Virginia-class submarine program and higher volumes on the Columbia-class submarine program, partially offset by lower performance on aircraft carrier construction.

Key Newport News Shipbuilding milestones for the quarter:
•Closed the acquisition of South Carolina advanced manufacturing facility and began work at Newport News Shipbuilding - Charleston Operations
•Successfully installed the first valve manifold assembly created by additive manufacturing technology on a new construction aircraft carrier


Mission Technologies

Three Months Ended
March 31
($ in millions)20252024$ Change% Change
Revenues$735 $750 $(15)(2.0)%
Segment operating income40 28 12 42.9 %
Segment operating margin %5.4 %3.7 %171 bps

Mission Technologies revenues for the first quarter of 2025 were $735 million, a decrease of $15 million, or
2.0%, from the same period in 2024. The decrease was primarily due to lower volumes in C5ISR, partially offset by higher volumes in cyber, electronic warfare & space.

Mission Technologies segment operating income for the first quarter of 2025 was $40 million, compared to $28 million in the first quarter of 2024. Segment operating margin in the first quarter of 2025 was 5.4%, compared to 3.7% in the same period last year. The increases were primarily driven by higher performance in cyber, electronic warfare & space and uncrewed systems.

Mission Technologies results included approximately $22 million of amortization of purchased intangible assets in the first quarter of 2025, compared to approximately $25 million in the same period last year.

Mission Technologies EBITDA margin1 in the first quarter of 2025 was 9.1%, an increase from 7.7% in the first quarter of 2024.




1Non-GAAP measures. See Exhibit B for definitions and reconciliations










HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 3 of 12


Key Mission Technologies milestones for the quarter:
•Awarded a task order valued at approximately $296 million to support U.S. Air Forces in Europe-Air Forces in Africa’s (USAFE-AFAFRICA) air and space operations around the globe
•Awarded a contract to deliver the new Australian Submarine Supplier Qualification (AUSSQ) pilot program over the next two years to accelerate the identification and qualification of Australian suppliers and products into the United States submarine industrial base
•Awarded a task order valued at approximately $182 million to provide logistics support for U.S. Air Force F-16 pilot training devices
•Selected to develop an open architecture High-Energy Laser weapon system for the U.S. Army’s Rapid Capabilities and Critical Technologies Office
•Awarded a $147 million contract to support shipboard and shore-based combat training services for the U.S. Navy





























































HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 4 of 12


HII Financial Outlook1
•     Reaffirming FY25 outlook
•     FY25 shipbuilding revenue2 between $8.9 and $9.1 billion; expect shipbuilding operating margin2 between 5.5% and 6.5%
•     FY25 Mission Technologies revenue between $2.9 to $3.1 billion, Mission Technologies segment operating margin2 between 4.0% and 4.5%; and Mission Technologies EBITDA margin2 between 8.0% and 8.5%
•    FY25 free cash flow2,3 between $300 and $500 million
FY25 Outlook1
Shipbuilding Revenue2
$8.9B - $9.1B
Shipbuilding Operating Margin2
5.5% - 6.5%
Mission Technologies Revenue
$2.9B - $3.1B
Mission Technologies Segment Operating Margin2
4.0% - 4.5%
Mission Technologies EBITDA Margin2
8.0% - 8.5%
Operating FAS/CAS Adjustment($43M)
Non-current State Income Tax Benefit/Expense2,4
~$0M
Interest Expense($130M)
Non-operating Retirement Benefit$191M
Effective Tax Rate~21%
Depreciation & Amortization~$340M
Capital Expenditures~4% of Sales
Free Cash Flow2,3
$300M - $500M

1The financial outlook, expectations and other forward-looking statements provided by the company for 2025 and beyond reflect the company's judgment based on the information available at the time of this release.
2Non-GAAP measures. See Exhibit B for definitions. In reliance upon Item 10(e)(1)(i)(B) of Regulation S-K, reconciliations of forward–looking GAAP and non–GAAP measures are not provided because of the unreasonable effort associated with providing such reconciliations due to the variability in the occurrence and the amounts of certain components of GAAP and non-GAAP measures. For the same reasons, we are unable to address the significance of the unavailable information, which could be material to future results.
3Outlook is based on current tax law and assumes the provisions requiring capitalization of R&D expenditures for tax purposes are not deferred or repealed.
4Outlook is based on current tax law. Repeal or deferral of provisions requiring capitalization of R&D expenditures would result in elevated non-current state income tax expense.




















HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 5 of 12



About HII

HII is a global, all-domain defense provider. HII’s mission is to deliver the world’s most powerful ships and all-domain solutions in service of the nation, creating the advantage for our customers to protect peace and freedom around the world.

As the nation’s largest military shipbuilder, and with a more than 135-year history of advancing U.S. national security, HII delivers critical capabilities extending from ships to unmanned systems, cyber, ISR, AI/ML and synthetic training. Headquartered in Virginia, HII’s workforce is 44,000 strong. For more information, please visit www.HII.com.

Conference Call Information

HII will webcast its earnings conference call at 9 a.m. Eastern time today. A live audio broadcast of the conference call and supplemental presentation will be available on the investor relations page of the company’s website: www.HII.com. A telephone replay of the conference call will be available from noon today through Thursday, May 8th by calling (866) 813-9403 or (929) 458-6194 and using access code 849641.

Cautionary Statement Regarding Forward-Looking Statements and Projections
Statements in this earnings release and in our other filings with the SEC, as well as other statements we may make from time to time, other than statements of historical fact, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "guidance," "outlook," "predicts," "potential," "continue," and similar words or phrases or the negative of these words or phrases. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable when made, we cannot guarantee future results, levels of activity, performance, or achievements. There are a number of important factors that could cause our actual results to differ materially from the results anticipated by our forward-looking statements, which include, but are not limited to: our dependence on the U.S. Government for substantially all of our business; significant delays or reductions in appropriations for our programs and/or changes in customer priorities and requirements (including government budgetary constraints, shifts in defense spending, and changes in customer short-range and long-range plans);our ability to estimate our future contract costs, including cost increases due to inflation, labor challenges, changes in trade policy, or other factors and our efforts to recover or offset such costs and/or changes in estimated contract costs, and perform our contracts effectively; changes in business practices, procurement processes and government regulations and our ability to comply with such requirements; adverse economic conditions in the United States and globally; our level of indebtedness and ability to service our indebtedness; our ability to deliver our products and services at an affordable life cycle cost and compete within our markets; our ability to attract, retain, and train a qualified workforce; subcontractor and supplier performance and the availability and pricing of raw materials and components; our ability to execute our strategic plan, including with respect to share repurchases, dividends, capital expenditures, and strategic acquisitions; investigations, claims, disputes, enforcement actions, litigation (including criminal, civil, and administrative), and/or other legal proceedings, and improper conduct of employees, agents, subcontractors, suppliers, business partners, or joint ventures in which we participate, including the impact on our reputation or ability to do business; changes in key estimates and assumptions regarding our pension and retiree health care costs; security threats, including cyber security threats, and related disruptions; natural and environmental disasters and political instability; health epidemics, pandemics and similar outbreaks; and other risk factors discussed herein and in our other filings with the SEC. There may be other risks and uncertainties that we are unable to predict at this time or that we currently do not expect to have a material adverse effect on our business, and we undertake no obligation to update or revise any forward-looking statements. You should not place undue reliance on any forward-looking statements that we may make.

This release also contains non-GAAP financial measures and includes a GAAP reconciliation of these financial measures. Non-GAAP financial measures should not be construed as being more important than comparable GAAP measures.









HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 6 of 12


Exhibit A: Financial Statements

HUNTINGTON INGALLS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)
Three Months Ended March 31
(in millions, except per share amounts)20252024
Sales and service revenues
Product sales$1,713 $1,787 
Service revenues1,021 1,018 
Sales and service revenues2,734 2,805 
Cost of sales and service revenues
Cost of product sales1,451 1,537 
Cost of service revenues889 893 
Income from operating investments, net13 12 
Other income and gains (losses), net— (1)
General and administrative expenses246 232 
Operating income161 154 
Other income (expense)
Interest expense(28)(21)
Non-operating retirement benefit48 44 
Other, net6 7 
Earnings before income taxes187 184 
Federal and foreign income tax expense38 31 
Net earnings$149 $153 
Basic earnings per share$3.79 $3.87 
Weighted-average common shares outstanding39.3 39.5 
Diluted earnings per share$3.79 $3.87 
Weighted-average diluted shares outstanding39.3 39.5 
Dividends declared per share$1.35 $1.30 
Net earnings from above$149 $153 
Other comprehensive income
Change in unamortized benefit plan costs1 5 
Tax expense for items of other comprehensive income— (2)
Other comprehensive income, net of tax1 3 
Comprehensive income$150 $156 










HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 7 of 12


HUNTINGTON INGALLS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
($ in millions)March 31,
2025		December 31, 2024
Assets
Current Assets
Cash and cash equivalents$167 $831 
Accounts receivable, net of allowance for expected credit losses of $2 million as of 2025 and 2024
387 212 
Contract assets2,017 1,683 
Inventoried costs215 208 
Income taxes receivable151 204 
Prepaid expenses and other current assets105 90 
Total current assets3,042 3,228 
Property, Plant, and Equipment, net of accumulated depreciation of $2,612 million as of 2025 and $2,583 million as of 2024
3,540 3,450 
Operating lease assets241 239 
Goodwill2,651 2,618 
Other intangible assets, net of accumulated amortization of $1,143 million as of 2025 and $1,118 million as of 2024
757 782 
Pension plan assets1,457 1,422 
Miscellaneous other assets415 402 
Total assets$12,103 $12,141 
Liabilities and Stockholders' Equity
Current Liabilities
Trade accounts payable602 598 
Accrued employees’ compensation327 392 
Short-term debt and current portion of long-term debt503 503 
Current portion of postretirement plan liabilities124 124 
Current portion of workers’ compensation liabilities204 201 
Contract liabilities647 774 
Other current liabilities449 399 
Total current liabilities2,856 2,991 
Long-term debt2,699 2,700 
Pension plan liabilities142 142 
Other postretirement plan liabilities205 209 
Workers’ compensation liabilities450 443 
Long-term operating lease liabilities204 205 
Deferred tax liabilities367 378 
Other long-term liabilities407 407 
Total liabilities7,330 7,475 
Commitments and Contingencies
Stockholders’ Equity
Common stock, $0.01 par value; 150,000,000 shares authorized; 53,823,416 shares issued and 39,238,707 shares outstanding as of 2025, and 53,714,128 shares issued and 39,129,419 shares outstanding as of 2024
1 1 
Additional paid-in capital2,057 2,045 
Retained earnings5,191 5,097 
Treasury stock(2,449)(2,449)
Accumulated other comprehensive loss(27)(28)
Total stockholders’ equity4,773 4,666 
Total liabilities and stockholders’ equity$12,103 $12,141 













HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 8 of 12


HUNTINGTON INGALLS INDUSTRIES, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 Three Months Ended March 31
($ in millions)20252024
Operating Activities
Net earnings$149 $153 
Adjustments to reconcile net cash provided by operating activities:
Depreciation54 53 
Amortization of purchased intangibles25 27 
Other non-cash transactions, net3 2 
Stock-based compensation24 14 
Deferred income taxes(11)(17)
Gain on investments in marketable securities(3)(8)
Change in
Accounts receivable(175)(253)
Contract assets(334)(124)
Inventoried costs(7)(13)
Prepaid expenses and other assets44 25 
Accounts payable and accruals(126)(34)
Retiree benefits(38)(27)
Net cash used in operating activities(395)(202)
Investing Activities:
Capital expenditures
Capital expenditure additions(67)(75)
Grant proceeds for capital expenditures— 3 
Acquisitions of businesses(133)— 
Proceeds from disposition of assets1 — 
Other investing activities, net— 1 
Net cash used in investing activities(199)(71)
Financing Activities:
Repayment of long-term debt— (145)
Proceeds from revolving credit facility borrowings— 42 
Repayment of revolving credit facility borrowings— (20)
Net borrowings on commercial paper— 117 
Dividends paid(53)(51)
Repurchases of common stock— (62)
Employee taxes on certain share-based payment arrangements(14)(25)
Other financing activities, net(3)(3)
Net cash used in financing activities(70)(147)
Change in cash and cash equivalents(664)(420)
Cash and cash equivalents, beginning of period831 430 
Cash and cash equivalents, end of period$167 $10 
Supplemental Cash Flow Disclosure
Cash paid for interest$8 $10 
Non-Cash Investing and Financing Activities
Capital expenditures accrued in accounts payable$16 $6 











HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 9 of 12



Exhibit B: Non-GAAP Measures Definitions & Reconciliations

We make reference to “segment operating income,” “segment operating margin,” “shipbuilding revenue,” “shipbuilding operating margin,” "Mission Technologies EBITDA," “Mission Technologies EBITDA margin” and “free cash flow.”

We internally manage our operations by reference to segment operating income and segment operating margin, which are not recognized measures under GAAP. When analyzing our operating performance, investors should use segment operating income and segment operating margin in addition to, and not as alternatives for, operating income and operating margin or any other performance measure presented in accordance with GAAP. They are measures that we use to evaluate our core operating performance. We believe that segment operating income and segment operating margin reflect additional ways of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. We believe these measures are used by investors and are a useful indicator to measure our performance. Because not all companies use identical calculations, our presentation of segment operating income and segment operating margin may not be comparable to similarly titled measures of other companies.

Shipbuilding revenue, shipbuilding operating margin, Mission Technologies EBITDA and Mission Technologies EBITDA margin are not measures recognized under GAAP. They are measures that we use to evaluate our core operating performance. When analyzing our operating performance, investors should use shipbuilding revenue, shipbuilding operating margin, Mission Technologies EBITDA and Mission Technologies EBITDA margin in addition to, and not as alternatives for, operating income and operating margin or any other performance measure presented in accordance with GAAP. We believe that shipbuilding revenue, shipbuilding operating margin, Mission Technologies EBITDA and Mission Technologies EBITDA margin reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. We believe these measures are used by investors and are a useful indicator to measure our performance. Because not all companies use identical calculations, our presentation of shipbuilding revenue, shipbuilding operating margin, Mission Technologies EBITDA and Mission Technologies EBITDA margin may not be comparable to similarly titled measures of other companies.

Free cash flow is not a measure recognized under GAAP. Free cash flow has limitations as an analytical tool and should not be considered in isolation from, or as a substitute for net earnings as a measure of our performance or net cash provided or used by operating activities as a measure of our liquidity. We believe free cash flow is an important measure for our investors because it provides them insight into our current and period-to-period performance and our ability to generate cash from continuing operations. We also use free cash flow as a key operating metric in assessing the performance of our business and as a key performance measure in evaluating management performance and determining incentive compensation. Free cash flow may not be comparable to similarly titled measures of other companies.

In reliance upon Item 10(e)(1)(i)(B) of Regulation S-K, reconciliations of forward-looking GAAP and non-GAAP measures are not provided because of the unreasonable effort associated with providing such reconciliations due to the variability in the occurrence and the amounts of certain components of GAAP and non-GAAP measures. For the same reasons, we are unable to address the significance of the unavailable information, which could be material to future results.

Segment operating income is defined as operating income for the relevant segment(s) before the Operating FAS/CAS Adjustment and non-current state income taxes.

Segment operating margin is defined as segment operating income as a percentage of sales and service revenues.

Shipbuilding revenue is defined as the combined sales and service revenues from our Newport News Shipbuilding segment and Ingalls Shipbuilding segment.

Shipbuilding operating margin is defined as the combined segment operating income of our Newport News Shipbuilding segment and Ingalls Shipbuilding segment as a percentage of shipbuilding revenue.









HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 10 of 12



Mission Technologies EBITDA is defined as Mission Technologies segment operating income before interest expense, income taxes, depreciation, and amortization.

Mission Technologies EBITDA margin is defined as Mission Technologies EBITDA as a percentage of Mission Technologies revenues.

Free cash flow is defined as net cash provided by (used in) operating activities less capital expenditures net of related grant proceeds.

Operating FAS/CAS Adjustment is defined as the difference between the service cost component of our pension and other postretirement expense determined in accordance with GAAP (FAS) and our pension and other postretirement expense under U.S. Cost Accounting Standards (CAS).

Non-current state income taxes are defined as deferred state income taxes, which reflect the change in deferred state tax assets and liabilities and the tax expense or benefit associated with changes in state uncertain tax positions in the relevant period. These amounts are recorded within operating income. Current period state income tax expense is charged to contract costs and included in cost of sales and service revenues in segment operating income.

Certain of the financial measures we present are adjusted for the Operating FAS/CAS Adjustment and non-current state income taxes to reflect the company’s performance based upon the pension costs and state tax expense charged to our contracts under CAS. We use these adjusted measures as internal measures of operating performance and for performance-based compensation decisions.

Reconciliations of Segment Operating Income and Segment Operating Margin

Three Months Ended
March 31
($ in millions)20252024
Ingalls revenues$637 $655 
Newport News revenues1,396 1,434 
Mission Technologies revenues735 750 
Intersegment eliminations(34)(34)
Sales and Service Revenues2,734 2,805 
Operating Income161 154 
Operating FAS/CAS Adjustment10 17 
Non-current state income taxes— (1)
Segment Operating Income171 170 
  As a percentage of sales and service revenues6.3 %6.1 %
Ingalls segment operating income46 60 
  As a percentage of Ingalls revenues7.2 %9.2 %
Newport News segment operating income85 82 
  As a percentage of Newport News revenues6.1 %5.7 %
Mission Technologies segment operating income40 28 
  As a percentage of Mission Technologies revenues5.4 %3.7 %









HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 11 of 12



Reconciliation of Free Cash Flow

Three Months Ended
March 31
($ in millions)20252024
Net cash used in operating activities$(395)$(202)
Less capital expenditures:
Capital expenditure additions (67)(75)
Grant proceeds for capital expenditures — 3 
Free cash flow$(462)$(274)




Reconciliation of Mission Technologies EBITDA and EBITDA Margin

Three Months Ended
March 31
($ in millions)20252024
Mission Technologies sales and service revenues$735 $750 
Mission Technologies segment operating income$40 $28 
Mission Technologies depreciation expense3 3 
Mission Technologies amortization expense22 25 
Mission Technologies state tax expense2 2 
Mission Technologies EBITDA$67 $58 
Mission Technologies EBITDA margin9.1 %7.7 %









HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 12 of 12