Huntington Ingalls Industries (HII) experienced a significant pre-market plunge of 6.81% on Thursday, following the release of its fourth-quarter and full-year 2025 financial results.
Despite reporting strong Q4 performance with earnings of $4.04 per diluted share, beating the FactSet estimate of $3.77, and revenue of $3.48 billion, exceeding the $3.09 billion consensus, investors reacted negatively. The decline appears driven by concerns over the company's growth trajectory, as full-year 2025 results showed only a 2% increase in revenue to $12.5 billion and a 2% rise in diluted earnings per share to $15.39.
The market's negative response may also reflect disappointment with the company's outlook, particularly the FY26 shipbuilding revenue guidance of $9.7 billion to $9.9 billion, which could have fallen short of investor expectations despite the company's achievement of approximately 14% shipbuilding throughput growth in 2025.