Huntington Ingalls Industries (NYSE: HII) is a defense shipbuilding company that designs, builds, and maintains military vessels for the U.S. Navy and U.S. Coast Guard. Revenue comes from long-term government contracts across three segments: Newport News Shipbuilding, Ingalls Shipbuilding, and Mission Technologies. Newport News is the largest segment at $6.507B in FY2025 sales, followed by Ingalls at $3.078B and Mission Technologies at $3.044B, together totaling $12.484B in consolidated sales and service revenues for the year ended December 31, 2025. The U.S. federal government is effectively the sole customer, making HII deeply concentrated in defense appropriations. Operating income was $657M in FY2025, up from $535M in FY2024. Switching costs are structural: HII is the sole builder of nuclear-powered aircraft carriers and one of only two U.S. shipyards qualified to build nuclear-powered submarines, creating near-irreplaceable program continuity.

Revenue model

Long-term cost-plus and fixed-price government contracts for ship construction and maintenance services. Revenue recognized over time as contract performance obligations are satisfied. Three reporting segments: Newport News (52% of FY2025 segment revenues), Ingalls (25%), and Mission Technologies (24%). Product sales were $8.133B and service revenues made up the remainder in FY2025.

Products and services

Newport News: nuclear-powered aircraft carriers (Gerald R. Ford class), Virginia-class (SSN 774) nuclear-powered attack submarines, refueling and complex overhaul (RCOH) of Nimitz-class carriers, naval nuclear support services. Ingalls: San Antonio-class (LPD 17) amphibious transport dock ships, Arleigh Burke-class (DDG 51) guided-missile destroyers, Legend-class National Security Cutters for the U.S. Coast Guard. Mission Technologies: Warfare Systems, Global Security, Unmanned Systems, and All-Domain Operations services and solutions for defense customers.

Customers and end markets

Primary customer is the U.S. federal government, principally the U.S. Navy and U.S. Coast Guard. End markets are naval shipbuilding, ship maintenance and overhaul, and defense technology services. Customer concentration is effectively 100% government, making revenue directly tied to U.S. defense appropriations and Navy shipbuilding budgets.

Value-chain role

Prime defense contractor and shipbuilder. HII designs, constructs, and provides lifecycle maintenance for major naval combatants. It also acts as a defense technology services provider through Mission Technologies. The company relies on subcontractors and suppliers for components and engages cooperatively with the U.S. government on classified information security requirements.

Geographic exposure

Operations are primarily domestic. Shipbuilding facilities are located in Pascagoula, Mississippi (Ingalls) and Newport News, Virginia (Newport News). Naval nuclear support services extend to U.S. Navy facilities globally. No material international revenue disclosed in the filing excerpts.

Source: SEC 10-K, filed 2026-02-05

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