v3.25.2
Revenue
 6 Months Ended
Jun. 30, 2025
Disaggregation of Revenue [Abstract]  
Revenue from Contract with Customer REVENUE
Disaggregation of Revenue

The following tables present revenues on a disaggregated basis:
Three Months Ended June 30, 2025
($ in millions)IngallsNewport NewsMission TechnologiesIntersegment EliminationsTotal
Revenue Type
Product sales$610 $1,319 $28 $— $1,957 
Service revenues111 283 731 — 1,125 
Intersegment3 1 32 (36)— 
Sales and service revenues$724 $1,603 $791 $(36)$3,082 
Customer Type
Federal$721 $1,601 $756 $— $3,078 
Commercial— 1 2 — 3 
State and local government agencies— — 1 — 1 
Intersegment3 1 32 (36)— 
Sales and service revenues$724 $1,603 $791 $(36)$3,082 
Contract Type
Firm fixed-price$5 $2 $104 $— $111 
Fixed-price incentive605 808 1 — 1,414 
Cost-type111 792 619 — 1,522 
Time and materials— — 35 — 35 
Intersegment3 1 32 (36)— 
Sales and service revenues$724 $1,603 $791 $(36)$3,082 
Three Months Ended June 30, 2024
($ in millions)IngallsNewport NewsMission TechnologiesIntersegment EliminationsTotal
Revenue Type
Product sales$631 $1,263 $32 $— $1,926 
Service revenues80 271 700 — 1,051 
Intersegment1 1 33 (35)— 
Sales and service revenues$712 $1,535 $765 $(35)$2,977 
Customer Type
Federal$711 $1,533 $730 $— $2,974 
Commercial— 1 1 — 2 
State and local government agencies— — 1 — 1 
Intersegment1 1 33 (35)— 
Sales and service revenues$712 $1,535 $765 $(35)$2,977 
Contract Type
Firm fixed-price$1 $2 $85 $— $88 
Fixed-price incentive630 812 3 — 1,445 
Cost-type80 720 599 — 1,399 
Time and materials— — 45 — 45 
Intersegment1 1 33 (35)— 
Sales and service revenues$712 $1,535 $765 $(35)$2,977 

Six Months Ended June 30, 2025
($ in millions)IngallsNewport NewsMission TechnologiesIntersegment EliminationsTotal
Revenue Type
Product sales$1,136 $2,479 $55 $— $3,670 
Service revenues218 519 1,409 — 2,146 
Intersegment7 1 62 (70)— 
Sales and service revenues$1,361 $2,999 $1,526 $(70)$5,816 
Customer Type
Federal$1,354 $2,997 $1,457 $— $5,808 
Commercial— 1 6 — 7 
State and local government agencies— — 1 — 1 
Intersegment7 1 62 (70)— 
Sales and service revenues$1,361 $2,999 $1,526 $(70)$5,816 
Contract Type
Firm fixed-price$5 $4 $201 $— $210 
Fixed-price incentive1,131 1,574 3 — 2,708 
Cost-type218 1,419 1,188 — 2,825 
Time and materials— 1 72 — 73 
Intersegment7 1 62 (70)— 
Sales and service revenues$1,361 $2,999 $1,526 $(70)$5,816 
Six Months Ended June 30, 2024
($ in millions)IngallsNewport NewsMission TechnologiesIntersegment EliminationsTotal
Revenue Type
Product sales$1,217 $2,439 $57 $— $3,713 
Service revenues147 528 1,394 — 2,069 
Intersegment3 2 64 (69)— 
Sales and service revenues$1,367 $2,969 $1,515 $(69)$5,782 
Customer Type
Federal$1,364 $2,966 $1,447 $— $5,777 
Commercial— 1 3 — 4 
State and local government agencies— — 1 — 1 
Intersegment3 2 64 (69)— 
Sales and service revenues$1,367 $2,969 $1,515 $(69)$5,782 
Contract Type
Firm fixed-price$2 $4 $167 $— $173 
Fixed-price incentive1,216 1,600 5 — 2,821 
Cost-type146 1,363 1,192 — 2,701 
Time and materials— — 87 — 87 
Intersegment3 2 64 (69)— 
Sales and service revenues$1,367 $2,969 $1,515 $(69)$5,782 

Three Months Ended June 30Six Months Ended June 30
($ in millions)2025202420252024
Major Programs
Amphibious assault ships$324 $413 $656 $765 
Surface combatants and coast guard cutters397 297 696 597 
Other3 2 9 5 
Total Ingalls724 712 1,361 1,367 
Aircraft carriers794 831 1,552 1,623 
Submarines663 563 1,179 1,079 
Other146 141 268 267 
Total Newport News1,603 1,535 2,999 2,969 
C5ISR; cyber, electronic warfare & space; live, virtual, and constructive training solutions668 638 1,296 1,264 
Other123 127 230 251 
Total Mission Technologies791 765 1,526 1,515 
Intersegment eliminations(36)(35)(70)(69)
Sales and service revenues$3,082 $2,977 $5,816 $5,782 

As of June 30, 2025, the Company had $56.9 billion of remaining performance obligations. The Company expects to recognize approximately 35% of its remaining performance obligations as revenue through 2026, an additional 30% through 2028, and the balance thereafter.
Cumulative Catch-up Revenue Adjustments

The following table presents the effect of net cumulative catch-up revenue adjustments on operating income and diluted earnings per share:
Three Months Ended June 30Six Months Ended June 30
($ in millions, except per share amounts)2025202420252024
Effect on operating income$(10)$24 $(10)$26 
Effect on diluted earnings per share$(0.20)$0.48 $(0.20)$0.51 

For the three months ended June 30, 2025, cumulative catch-up revenue adjustments included a favorable adjustment of $32 million on the Arleigh Burke class (DDG 51) multi-year construction contract awarded in 2018 at the Company's Ingalls segment.

For the three months ended June 30, 2025, cumulative catch-up revenue adjustments included unfavorable adjustments of $42 million on the Enterprise (CVN 80) and Doris Miller (CVN 81) construction contract at the Company's Newport News segment and $20 million on the Bougainville (LHA 8) construction contract at the Company's Ingalls segment.

For the six months ended June 30, 2025, cumulative catch-up revenue adjustments included a favorable adjustment of $33 million on the Arleigh Burke class (DDG 51) multi-year construction contract awarded in 2018 at the Company's Ingalls segment.

For the six months ended June 30, 2025, cumulative catch-up revenue adjustments included an unfavorable adjustment of $43 million on the Enterprise (CVN 80) and Doris Miller (CVN 81) construction contract at the Company's Newport News segment.

For the three months ended June 30, 2024, cumulative catch-up revenue adjustments included a favorable adjustment of $28 million for contract adjustments and incentives on the refueling and complex overhaul ("RCOH") of USS John C. Stennis (CVN 74) at the Company's Newport News segment.

For the six months ended June 30, 2024, no individual favorable cumulative catch-up revenue adjustment was material to the Company's unaudited condensed consolidated statements of operations and comprehensive income.

For the three and six months ended June 30, 2024, no individual unfavorable cumulative catch-up revenue adjustment was material to the Company's unaudited condensed consolidated statements of operations and comprehensive income.

Contract Balances

The Company reports contract balances in a net contract asset or contract liability position on a contract-by-contract basis at the end of each reporting period. Net contract assets were comprised as follows:
($ in millions)June 30, 2025December 31, 2024
Contract assets$1,811 $1,683 
Contract liabilities969 774 
Net contract assets$842 $909 
The Company’s net contract assets decreased $67 million from December 31, 2024 to June 30, 2025, primarily as a result of the timing of billings across programs on certain U.S. Navy contracts. For the three and six months ended June 30, 2025, the Company recognized revenue of $52 million and $604 million, respectively, related to its contract liabilities as of December 31, 2024. For the three and six months ended June 30, 2024, the Company recognized revenue of $283 million and $924 million, respectively, related to its contract liabilities as of December 31, 2023.