By Elias Schisgall
Shares of Huntington Ingalls Industries fell as the company's 2026 outlook for free cash flow came in below Wall Street expectations, overshadowing revenue growth in the fourth quarter.
Shares were down 10% to $371.22 in Thursday morning trading. The stock is up about 90% over the past year.
The military shipbuilder and defense-technology company on Thursday said it expects free cash flow in 2026 of between $500 million and $600 million, short of Wall Street's estimate of $624.2 million, according to FactSet. The company generated $800 million in free cash flow in 2025.
Huntington Ingalls reported a fourth-quarter profit of $159 million, or $4.04 a share, compared with a profit of $123 million, or $3.15 a share, a year earlier. Analysts polled by FactSet were expecting $3.77 a share.
Revenue rose to $3.48 billion, up from $3 billion a year earlier. Analysts were expecting $3.09 billion.
Revenue from the Ingalls shipbuilding segment grew 21% to $889 million, which the company attributed to higher volumes in amphibious assault ships and surface combatants. Newport News shipbuilding revenue grew 19% to $1.9 billion, fueled by growing volumes in submarines and aircraft carriers, Huntington Ingalls said.
Mission-technologies revenue grew 2.5% to $731 million, with higher volumes in warfare systems, global security and unmanned systems, partially offset by lower volumes in all-domain operations, the company said.
Huntington Ingalls is projecting full-year shipbuilding revenue between $9.7 billion and $9.9 billion and mission-technologies revenue between $3 billion and $3.2 billion.
Write to Elias Schisgall at elias.schisgall@wsj.com
(END) Dow Jones Newswires
February 05, 2026 10:39 ET (15:39 GMT)
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