Shares of Huntington Ingalls Industries (HII) surged 5.72% in pre-market trading on Thursday after the military shipbuilder reported third-quarter earnings that significantly exceeded analyst expectations and raised its full-year guidance.
For the third quarter, Huntington Ingalls posted earnings per share of $3.68, handily beating the analyst consensus estimate of $3.34. Revenue came in at $3.192 billion, up 16.1% year-over-year and also topping expectations of $2.960 billion. The company saw strong growth across its shipbuilding and mission technologies segments, driven by higher volumes in surface combatants, submarines, and aircraft carriers.
Adding to investor optimism, Huntington Ingalls raised its full-year revenue guidance for both its shipbuilding and mission technologies units. The company now expects fiscal year 2025 shipbuilding revenue between $9.0 billion and $9.1 billion, up from its previous forecast of $8.9 billion to $9.1 billion. It also increased its free cash flow guidance to between $550 million and $650 million. CEO Chris Kastner noted that targeted investments are helping strengthen the workforce and build a more robust maritime supply chain to support higher shipbuilding throughput.