Huntington Ingalls Industries (HII) has opened Q1 2026 earnings season with a backdrop of solid recent numbers, capped by Q4 2025 revenue of US$3.5 billion, basic EPS of US$4.05, and quarterly net income of US$159 million. These figures together feed into trailing twelve month EPS of US$15.39 on US$12.5 billion of revenue. Over the past few quarters, the company has reported revenue of US$2.7 billion in Q1 2025, US$3.0 billion in Q4 2024, and US$3.5 billion in Q4 2025, while quarterly basic EPS moved from US$3.15 in Q4 2024 to US$4.05 in Q4 2025. Over the same period, net income rose from US$123 million to US$159 million. With trailing net margins reported at around 4.8%, the latest results frame the discussion around how consistently Huntington Ingalls Industries can convert its contracted work into earnings.

See our full analysis for Huntington Ingalls Industries.

With the headline figures in place, the next step is to see how these results line up with the prevailing narratives about Huntington Ingalls Industries's growth, profitability, and risk profile.

TTM earnings up 10% to US$605 million

• On a trailing twelve month basis, Huntington Ingalls Industries reported net income of US$605 million and EPS of US$15.39 on US$12.5b of revenue, compared with US$550 million of net income and US$13.96 EPS a year earlier.
• Consensus narrative points to long term revenue potential supported by a US$56.9b backlog and multi year contracts. The 10% earnings uplift over the last year fits that story, while the still modest 4.8% net margin shows how sensitive that outlook is to execution and cost control.
  • Analysts expect earnings to reach about US$912.4 million and EPS of US$23.46 by around 2029, which assumes further improvement from the current US$605 million base.
  • At the same time, the heavy reliance on a few large shipbuilding programs in the consensus narrative means any disruption to those contracts could quickly show up against this relatively low margin profile.

P/E of 21.2x vs industry 34.3x

• The stock trades on a trailing P/E of 21.2x at a share price of US$326.13, below both the peer average of 37.7x and the broader US Aerospace & Defense industry at 34.3x. The DCF fair value in the data is US$439.56.
• Bullish investors argue that investments in digital shipbuilding and Mission Technologies could justify higher earnings over time. The current P/E gap to peers gives them a valuation cushion if those efficiency and tech gains show up in future margins.
  • The bullish narrative points to potential net margin expansion from around 4.8% today toward 6.6%, which would be a meaningful step up from the margin implied by the current US$605 million of trailing earnings.
  • If revenue were to grow closer to the 7.1% annual rate used in the bullish scenario rather than the 4.4% forecast in the baseline data, the combination of higher margins and revenue growth could make the present 21.2x P/E look more conservative compared with the 34.3x industry figure.

On that view, some investors will want to see how the optimistic case stacks up against the detailed financial and contract assumptions in the bull thesis before drawing conclusions about upside potential 🐂 Huntington Ingalls Industries Bull Case

4.4% revenue growth forecast vs broader market

• The forecasts in the data show revenue expected to grow around 4.4% per year and earnings about 8.9% per year, both below the broader US market growth rates cited. Trailing earnings had previously declined by an average of 1.5% per year over five years.
• Bears focus on that slower top line profile and the dependence on large government programs, arguing that even with recent 10% trailing earnings growth and a 1.69% dividend yield, the business is still exposed if defense budgets or ship priorities shift away from big manned vessels.
  • The bearish narrative highlights that more than 90% of sales relate to government contracts. If revenue growth stays near 4.4% rather than accelerating, any pressure on contract timing could matter more than the current 4.8% margin suggests.
  • Given analysts use a single price target of US$407.09 in the data and a DCF fair value of US$439.56, skeptics may see limited room for disappointment if revenue growth does not keep pace with what those valuation anchors imply.

For that more cautious angle, it can help to walk through how concerns about contract risk, labor costs, and technology shifts are laid out in the bear case before deciding how much weight to put on them 🐻 Huntington Ingalls Industries Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Huntington Ingalls Industries on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Given the mixed tone around growth, valuation, and contract risk, it helps to see the full picture and decide where you stand. To weigh both sides with confidence, start by checking the 5 key rewards and 1 important warning sign.

See What Else Is Out There

Huntington Ingalls Industries combines a relatively low 4.8% net margin with revenue growth forecasts that sit below broader US market expectations.

If you want ideas where pricing may offer more room for error than a 21.2x P/E against slower growth, start by checking the 51 high quality undervalued stocks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.