hii_logox2023xlogoa.jpg
Exhibit 99.1

News Release
Contacts:
Brooke Hart (Media)        
brooke.hart@hii.com
202-264-7108
        
Christie Thomas (Investors)
christie.thomas@hii.com
757-380-2104            


HII Reports Third Quarter 2026 Results

NEWPORT NEWS, Va. (October 29, 2026) - HII (NYSE: HII) today reported results for the third quarter of fiscal 2026.

Highlights
•Record third quarter revenues of $3.5 billion
•Third quarter net earnings were $217 million or $5.48 diluted earnings per share
•New contract awards in the third quarter totaled $32.4 billion
•Company raises the FY26 shipbuilding revenue guidance range to between $10.5 and $10.7 billion1
•Company reaffirms FY26 shipbuilding operating margin2 guidance range of 6.0 to 6.5 percent1
•Company reaffirms previously issued FY26 free cash flow2 outlook1

Third Quarter Results
Third quarter 2026 revenues of $3.5 billion were up 10.8% from the third quarter of 2025, driven by growth at Newport News Shipbuilding and Ingalls Shipbuilding.

Operating income in the third quarter of 2026 was $246 million and operating margin was 7.0%, compared to $161 million and 5.0%, respectively, in the third quarter of 2025.

Segment operating income2 in the third quarter of 2026 was $262 million and segment operating margin2 was 7.4%, compared to $179 million and 5.6%, respectively, in the third quarter of 2025.

Net earnings in the third quarter of 2026 were $217 million, compared to $145 million in the third quarter of 2025. Diluted earnings per share in the quarter was $5.48, compared to $3.68 in the third quarter of 2025.

Net cash provided by operating activities in the quarter was $520 million and free cash flow2 was $429 million, compared to net cash provided by operating activities of $118 million and free cash flow2 of $16 million in the third quarter of 2025.

New contract awards in the third quarter of 2026 were $32.4 billion. Year-to-date contract awards totaled $43.1 billion.

Commenting on the Company's third quarter 2026 results, Chris Kastner, HII's president and CEO said, “Our third quarter results reflect solid performance across all three segments, and the significant awards we received during the quarter have now secured approximately 90 percent of our expected shipbuilding revenue through 2030. With that visibility, our focus is squarely on shipbuilding execution. At Mission Technologies, we won landmark maritime autonomy awards for the Medium Unmanned Surface Vessel (MUSV) and the Lionfish Small Unmanned Undersea Vehicle (SUUV), demonstrating our continued leadership in unmanned systems and maritime autonomy."



1The financial outlook, expectations, and other forward-looking statements provided by the company for 2026 and beyond reflect the company's judgment based on information available at the time of this release. Please see the "Cautionary Statement Regarding Forward-Looking Statements and Projections" section in this release and the “Forward-Looking Statements and Projections” section in our Quarterly Report on Form 10-Q for factors that may impact the company's ability to meet expectations.


2Non-GAAP measures. See Exhibit B for definitions and reconciliations.









HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 1 of 12


Results of Operations
Three Months EndedNine Months Ended
September 30September 30
($ in millions, except per share amounts)20262025$ Change% Change20262025$ Change% Change
Sales and service revenues$3,537 $3,192 $345 10.8 %$10,054 $9,008 $1,046 11.6 %
Operating income246 161 85 52.8 %611 485 126 26.0 %
  Operating margin %7.0 %5.0 %191 bps6.1 %5.4 %69 bps
Segment operating income1
262 179 83 46.4 %658 522 136 26.1 %
  Segment operating margin %1
7.4 %5.6 %180 bps6.5 %5.8 %75 bps
Net earnings217 145 72 49.7 %574 446 128 28.7 %
Diluted earnings per share$5.48 $3.68 $1.80 48.9 %$14.53 $11.35 $3.18 28.0 %
1 Non-GAAP measures that exclude non-segment factors affecting operating income. See Exhibit B for definitions and reconciliations.

Segment Operating Results
Ingalls Shipbuilding
Three Months EndedNine Months Ended
September 30September 30
($ in millions)20262025$ Change% Change20262025$ Change% Change
Revenues$876 $828 $48 5.8 %$2,446 $2,189 $257 11.7 %
Segment operating income59 65 (6)(9.2)%166 165 1 0.6 %
Segment operating margin %6.7 %7.9 %(112) bps6.8 %7.5 %(75) bps
Ingalls Shipbuilding revenues for the third quarter of 2026 were $876 million, an increase of $48 million, or 5.8%, from the same period in 2025, primarily driven by higher volumes in amphibious assault ships.

Ingalls Shipbuilding segment operating income for the third quarter of 2026 was $59 million, a decrease of $6 million from the same period in 2025. Segment operating margin in the third quarter of 2026 was 6.7%, compared to 7.9% in the same period last year. The decrease in operating income was primarily driven by lower performance in surface combatants.

Key Ingalls Shipbuilding milestones for the quarter:
•Christened guided missile destroyer George M. Neal (DDG 131)
•Expanded distributed shipbuilding to amphibious ships and erected first grand block built by distributed shipbuilding partners on guided missile destroyer Thad Cochran (DDG 135)
•Signed performance-based production agreements with Path Robotics and GrayMatter Robotics designed to accelerate the development and deployment of advanced automation across U.S. Navy shipbuilding programs
•Launched intelligent mechanized automated welding pilot with HD Hyundai Heavy Industries






















HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 2 of 12


Newport News Shipbuilding
Three Months EndedNine Months Ended
September 30September 30
($ in millions)20262025$ Change% Change20262025$ Change% Change
Revenues$1,910 $1,617 $293 18.1 %$5,424 $4,616 $808 17.5 %
Segment operating income132 80 52 65.0 %331 247 84 34.0 %
Segment operating margin %6.9 %4.9 %196 bps6.1 %5.4 %75 bps
Newport News Shipbuilding revenues for the third quarter of 2026 were $1.9 billion, an increase of $293 million, or 18.1%, from the same period in 2025. The increase was primarily driven by higher volumes in submarines and aircraft carriers.

Newport News Shipbuilding segment operating income for the third quarter of 2026 was $132 million, an increase of $52 million from the same period in 2025. Segment operating margin in the third quarter of 2026 was 6.9% compared to 4.9% in the same period last year. The increase in operating income was primarily driven by contract adjustments and incentives in the Virginia-class submarine program and higher submarine and aircraft carrier volumes.

Key Newport News Shipbuilding milestones for the quarter:
•Awarded contracts for the construction of Block VI Virginia-class and Build II Columbia-class submarines
•Achieved preliminary acceptance of John F. Kennedy (CVN 79)
•Awarded long-lead time materials contract for the construction of planned aircraft carrier CVN 82

Mission Technologies
Three Months EndedNine Months Ended
September 30September 30
($ in millions)20262025$ Change% Change20262025$ Change% Change
Revenues$792 $787 $5 0.6 %$2,300 $2,313 $(13)(0.6)%
Segment operating income71 34 37 108.8 %161 110 51 46.4 %
Segment operating margin %9.0 %4.3 %464 bps7.0 %4.8 %224 bps
Mission Technologies revenues for the third quarter of 2026 were $792 million, an increase of $5 million, or 0.6%, from the same period in 2025. The increase was primarily due to higher volumes in Unmanned Systems, partially offset by lower volumes in Global Security.

Mission Technologies segment operating income for the third quarter of 2026 was $71 million, an increase of $37 million from the same period in 2025. Segment operating margin in the third quarter of 2026 was 9.0%, compared to 4.3% in the same period last year. The increase in operating income was primarily due to a successful milestone achievement and higher volumes in Unmanned Systems and higher equity income from nuclear and environmental joint ventures.

Mission Technologies results included approximately $18 million of amortization of purchased intangible assets in the third quarter of 2026, compared to approximately $22 million in the same period last year.

Mission Technologies EBITDA margin1 in the third quarter of 2026 was 11.9%, compared to 7.8% in the third quarter of 2025.

Key Mission Technologies milestones for the quarter:
•Achieved third quarter 2026 book-to-bill of 2.4x
•Awarded contract for 10 ROMULUS USVs, accelerating deployment of proven autonomous capability
•Awarded option year contract for U.S. Navy Lionfish Small Unmanned Undersea Vehicle (SUUV) production
•Awarded $2.2 billion contract to advance U.S. surveillance and intelligence capabilities for the Western Hemisphere
•Expanded unmanned production facility by 25% to meet growing global maritime demand
1Non-GAAP measures. See Exhibit B for definitions and reconciliations.










HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 3 of 12


HII Financial Outlook1
•FY26 shipbuilding revenue between $10.5 and $10.7 billion; expect shipbuilding operating margin2 between 6.0% and 6.5%
•FY26 Mission Technologies revenue between $3.0 and $3.2 billion
•FY26 Mission Technologies segment operating margin of approximately 6%; and Mission Technologies EBITDA margin2 of approximately 9%
•FY26 free cash flow2 between $500 and $600 million
•Cumulative FY26 & FY27 free cash flow2 target of between $1.2 billion and $1.3 billion

Prior FY26 Outlook
Current FY26 Outlook1
Shipbuilding Revenue$10.2B - $10.4B$10.5B - $10.7B
Shipbuilding Operating Margin2
6.0% - 6.5%6.0% - 6.5%
Mission Technologies Revenue
$3.0B - $3.2B$3.0B - $3.2B
Mission Technologies Segment Operating Margin
~5%~6%
Mission Technologies EBITDA Margin2
8.4% - 8.6%~9%
Operating FAS/CAS Adjustment($44M)($40M)
Non-current State Income Tax Expense3
~($20M)($27M)
Interest Expense($105M)($100M)
Non-operating Retirement Benefit$213M$213M
Effective Tax Rate~17%~17%
Depreciation & Amortization~$330M~$330M
Capital Expenditures4% - 5% of Sales~$500M
Free Cash Flow2
$500M - $600M$500M - $600M

1The financial outlook, expectations, and other forward-looking statements provided by the company for 2026 and beyond reflect the company's judgment based on the information available at the time of this release. Please see the "Cautionary Statement Regarding Forward-Looking Statements and Projections" section in this release and the “Forward-Looking Statements and Projections” section in our Quarterly Report on Form 10-Q for factors that may impact the company's ability to meet expectations.

2Non-GAAP measures. See Exhibit B for definitions. In reliance upon Item 10(e)(1)(i)(B) of Regulation S-K, reconciliations of forward–looking GAAP and non–GAAP measures are not provided because of the unreasonable effort associated with providing such reconciliations due to the variability in the occurrence and the amounts of certain components of GAAP and non-GAAP measures. For the same reasons, we are unable to address the significance of the unavailable information, which could be material to future results.

3Outlook is based on current tax law. Variability exists based on how and when individual states conform to recent federal tax law changes.


























HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 4 of 12




About HII

HII is America's Seapower Company. The nation’s largest shipbuilder, HII builds the manned and unmanned maritime systems and all-domain mission technologies that project U.S. and allied power around the world. With a more than 140-year history of advancing U.S. national security, HII is headquartered in Virginia and employs 46,000 people across three divisions. For more information, visit www.HII.com.

Conference Call Information

HII will webcast its earnings conference call at 9 a.m. Eastern time today. A live audio broadcast of the conference call and supplemental presentation will be available on the investor relations page of the company’s website: www.HII.com. A replay of the call will be available on the website for a limited time.











HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 5 of 12



Cautionary Statement Regarding Forward-Looking Statements and Projections
Statements in this earnings release and in our other filings with the SEC, as well as other statements we may make from time to time, other than statements of historical fact, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "guidance," "outlook," "predicts," "potential," "continue," and similar words or phrases or the negative of these words or phrases. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable when made, we cannot guarantee future results, levels of activity, performance, or achievements. There are a number of important factors that could cause our actual results to differ materially from the results anticipated by our forward-looking statements, which include, but are not limited to:

•our dependence on the U.S. Government for substantially all of our business;
•significant delays or reductions in appropriations for our programs and/or changes in customer priorities and requirements (including government budgetary constraints, government shutdowns, shifts in defense spending, and changes in customer short-range and long-range plans);
•our ability to estimate our future contract costs, including cost increases due to inflation, labor challenges, changes in trade policy, or other factors and our efforts to recover or offset such costs and/or changes in estimated contract costs, and perform our contracts effectively;
•changes in business practices, procurement processes and government regulations, including changes through executive orders, contract terms, or other policies or practices applicable to our industry, and our ability to comply with such requirements;
•adverse economic conditions in the United States and globally;
•our level of indebtedness and ability to service our indebtedness;
•our ability to deliver our products and services at an affordable life cycle cost and compete within our markets;
•our ability to attract, retain, and train a qualified workforce;
•subcontractor and supplier performance and the availability and pricing of raw materials and components;
•our ability to execute our strategic plan, including with respect to share repurchases, dividends, capital expenditures, and strategic acquisitions;
•investigations, claims, disputes, enforcement actions, litigation (including criminal, civil, and administrative), and/or other legal proceedings, and improper conduct of employees, agents, subcontractors, suppliers, business partners, or joint ventures in which we participate, including the impact on our reputation or ability to do business;
•changes in key estimates and assumptions regarding our pension and retiree health care costs;
•security threats, including cyber security threats, and related disruptions;
•natural and environmental disasters and political instability;
•health epidemics, pandemics and similar outbreaks; and
•other risk factors discussed herein and in our other filings with the SEC.

There may be other risks and uncertainties that we are unable to predict at this time or that we currently do not expect to have a material adverse effect on our business, and we undertake no obligation to update or revise any forward-looking statements. You should not place undue reliance on any forward-looking statements that we may make.

This release also contains non-GAAP financial measures and includes a GAAP reconciliation of these financial measures. Non-GAAP financial measures should not be construed as being more important than comparable GAAP measures.









HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 6 of 12



Exhibit A: Financial Statements

HUNTINGTON INGALLS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)
Three Months Ended September 30Nine Months Ended September 30
(in millions, except per share amounts)2026202520262025
Sales and service revenues
Product sales$2,437 $2,072 $6,712 $5,742 
Service revenues1,100 1,120 3,342 3,266 
Sales and service revenues3,537 3,192 10,054 9,008 
Cost of sales and service revenues
Cost of product sales2,100 1,815 5,826 4,962 
Cost of service revenues957 983 2,909 2,863 
Income from operating investments, net26 12 52 33 
Other income and gains (losses), net(3)— (3)1 
General and administrative expenses257 245 757 732 
Operating income246 161 611 485 
Other income (expense)
Interest expense(26)(23)(75)(79)
Non-operating retirement benefit53 48 159 143 
Other, net2 18 22 30 
Earnings before income taxes275 204 717 579 
Federal and foreign income tax expense58 59 143 133 
Net earnings$217 $145 $574 $446 
Basic earnings per share$5.49 $3.69 $14.57 $11.35 
Weighted-average common shares outstanding39.5 39.3 39.4 39.3 
Diluted earnings per share$5.48 $3.68 $14.53 $11.35 
Weighted-average diluted shares outstanding39.6 39.4 39.5 39.3 
Dividends declared per share$1.38 $1.35 $4.14 $4.05 
Net earnings from above$217 $145 $574 $446 
Other comprehensive income
Change in unamortized benefit plan costs2 1 6 3 
Tax expense for items of other comprehensive income(1)(1)(2)(1)
Other comprehensive income, net of tax1 — 4 2 
Comprehensive income$218 $145 $578 $448 










HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 7 of 12



HUNTINGTON INGALLS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
($ in millions)September 30, 2026December 31, 2025
Assets
Current Assets
Cash and cash equivalents$387 $774 
Accounts receivable, net of allowance for expected credit losses of $3 million as of 2026 and $2 million as of 2025
361 339 
Contract assets2,125 1,758 
Inventoried costs240 219 
Income taxes receivable250 284 
Prepaid expenses and other current assets100 77 
Total current assets3,463 3,451 
Property, plant, and equipment, net of accumulated depreciation of $2,892 million as of 2026 and $2,754 million as of 2025
3,849 3,726 
Operating lease assets275 267 
Goodwill2,650 2,650 
Other intangible assets, net of accumulated amortization of $1,285 million as of 2026 and $1,222 million as of 2025
631 694 
Pension plan assets1,668 1,544 
Miscellaneous other assets444 417 
Total assets$12,980 $12,749 
Liabilities and Stockholders' Equity
Current Liabilities
Trade accounts payable$709 $556 
Accrued employees’ compensation403 443 
Current portion of postretirement plan liabilities119 119 
Current portion of workers’ compensation liabilities214 217 
Contract liabilities780 1,220 
Other current liabilities513 490 
Total current liabilities2,738 3,045 
Long-term debt2,704 2,700 
Pension plan liabilities155 155 
Other postretirement plan liabilities187 200 
Workers’ compensation liabilities437 442 
Long-term operating lease liabilities225 223 
Deferred tax liabilities694 572 
Other long-term liabilities348 339 
Total liabilities7,488 7,676 
Commitments and Contingencies
Stockholders’ Equity
Common stock, $0.01 par value; 150,000,000 shares authorized; 53,990,247 shares issued and 39,405,538 shares outstanding as of 2026, and 53,826,236 shares issued and 39,241,527 shares outstanding as of 2025
1 1 
Additional paid-in capital2,096 2,087 
Retained earnings5,893 5,487 
Treasury stock(2,449)(2,449)
Accumulated other comprehensive loss(49)(53)
Total stockholders’ equity5,492 5,073 
Total liabilities and stockholders’ equity$12,980 $12,749 













HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 8 of 12




HUNTINGTON INGALLS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Nine Months Ended September 30
($ in millions)20262025
Operating Activities:
Net earnings$574 $446 
Adjustments to reconcile net cash provided by operating activities:
Depreciation167 164 
Amortization of purchased intangibles63 78 
Stock-based compensation47 43 
Deferred income taxes120 121 
Gain on investments in marketable securities(18)(28)
Other non-cash transactions, net17 15 
Change in
Accounts receivable(22)(162)
Contract assets(367)(186)
Inventoried costs(21)(13)
Prepaid expenses and other assets(2)(23)
Accounts payable and accruals(327)207 
Retiree benefits(132)(116)
Net cash provided by operating activities99 546 
Investing Activities:
Capital expenditures
Capital expenditure additions(288)(268)
Grant proceeds for capital expenditures7 6 
Proceeds from sale of investments— 5 
Acquisitions of businesses— (132)
Other investing activities, net1 2 
Net cash used in investing activities(280)(387)
Financing Activities:
Repayment of long-term debt— (500)
Proceeds from line of credit borrowings17 — 
Repayment of line of credit borrowings(17)— 
Dividends paid(163)(159)
Employee taxes on certain share-based payment arrangements(43)(14)
Other financing activities, net— (5)
Net cash used in financing activities(206)(678)
Change in cash and cash equivalents(387)(519)
Cash and cash equivalents, beginning of period774 831 
Cash and cash equivalents, end of period$387 $312 
Supplemental Cash Flow Disclosure
Cash paid for income taxes (net of refunds)$19 $71 
Cash paid for interest$96 $86 
Non-Cash Investing and Financing Activities
Capital expenditures accrued in accounts payable$14 $7 









HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 9 of 12



Exhibit B: Non-GAAP Measures Definitions & Reconciliations

This earnings release contains non-GAAP (accounting principles generally accepted in the United States of America) financial measures as defined by SEC Regulation G and indicated by a footnote in the text of this release. Definitions for the non-GAAP measures, and related reconciliations, are provided below. Because not all companies use identical definitions or calculations, our presentation of these measures may not be comparable to similarly titled measures of other companies.

Segment Operating Income and Segment Operating Margin. We internally manage our operations by reference to segment operating income and segment operating margin and use these measures to evaluate our core operating performance. We believe that segment operating income and segment operating margin reflect additional ways of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. These measures should be considered in addition to, and not as alternatives for, operating income and operating margin or any other performance measure presented in accordance with GAAP.

Segment operating income is defined as operating income for the relevant segment(s) before the Operating FAS/CAS Adjustment and non-current state income taxes.

Segment operating margin is defined as segment operating income as a percentage of sales and service revenues.

Shipbuilding operating margin, Mission Technologies EBITDA and Mission Technologies EBITDA margin. We use shipbuilding operating margin, Mission Technologies EBITDA and Mission Technologies EBITDA margin to evaluate our core operating performance. We believe these measures reflect additional ways of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. These measures should be considered in addition to, and not as alternatives for, operating income and operating margin or any other performance measure presented in accordance with GAAP.

Shipbuilding operating margin is defined as the combined segment operating income of our Newport News Shipbuilding segment and Ingalls Shipbuilding segment as a percentage of shipbuilding revenue. Shipbuilding revenue is the sum of revenues of our Newport News Shipbuilding segment and Ingalls Shipbuilding segment.

Mission Technologies EBITDA is defined as Mission Technologies segment operating income before interest expense, income taxes, depreciation, and amortization.

Mission Technologies EBITDA margin is defined as Mission Technologies EBITDA as a percentage of Mission Technologies revenues.

Free cash flow. We use free cash flow as a key operating metric in assessing the performance of our business and as a key performance measure in evaluating management performance and determining incentive compensation. We believe free cash flow is an important liquidity measure that may be useful to investors and other users of our financial statements because it provides insight into our current and period-to-period performance and our ability to generate cash from continuing operations. Free cash flow has limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, net income as a measure of our performance or net cash provided by operating activities as a measure of our liquidity.

Free cash flow is defined as net cash provided by (used in) operating activities less capital expenditures net of related grant proceeds.

In reliance upon Item 10(e)(1)(i)(B) of Regulation S-K, reconciliations of forward-looking GAAP and non-GAAP measures are not provided because of the unreasonable effort associated with providing such reconciliations due to the variability in the occurrence and the amounts of certain components of GAAP and non-GAAP measures. For the same reasons, we are unable to address the significance of the unavailable information, which could be material to future results.










HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 10 of 12



Reconciliations of Segment Operating Income and Segment Operating Margin

Three Months EndedNine Months Ended
September 30September 30
($ in millions)2026202520262025
Ingalls revenues$876 $828 $2,446 $2,189 
Newport News revenues1,910 1,617 5,424 4,616 
Mission Technologies revenues792 787 2,300 2,313 
Intersegment eliminations(41)(40)(116)(110)
Sales and Service Revenues3,537 3,192 10,054 9,008 
Operating Income246 161 611 485 
Operating FAS/CAS Adjustment12 9 29 25 
Non-current state income taxes4 9 18 12 
Segment Operating Income262 179 658 522 
  As a percentage of sales and service revenues7.4 %5.6 %6.5 %5.8 %
Ingalls segment operating income59 65 166 165 
  As a percentage of Ingalls revenues6.7 %7.9 %6.8 %7.5 %
Newport News segment operating income132 80 331 247 
  As a percentage of Newport News revenues6.9 %4.9 %6.1 %5.4 %
Mission Technologies segment operating income71 34 161 110 
  As a percentage of Mission Technologies revenues9.0 %4.3 %7.0 %4.8 %

Reconciliation of Free Cash Flow

Three Months EndedNine Months Ended
September 30September 30
($ in millions)2026202520262025
Net cash provided by operating activities$520 $118 $99 $546 
Less capital expenditures:
Capital expenditure additions (95)(105)(288)(268)
Grant proceeds for capital expenditures 4 3 7 6 
Free cash flow$429 $16 $(182)$284 























HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 11 of 12



Reconciliation of Mission Technologies EBITDA and EBITDA Margin

Three Months EndedNine Months Ended
September 30September 30
($ in millions)2026202520262025
Mission Technologies sales and service revenues$792 $787 $2,300 $2,313 
Mission Technologies segment operating income$71 $34 $161 $110 
Mission Technologies depreciation expense3 3 9 9 
Mission Technologies amortization expense18 22 53 67 
Mission Technologies state tax expense2 2 6 6 
Mission Technologies EBITDA$94 $61 $229 $192 
Mission Technologies EBITDA margin11.9 %7.8 %10.0 %8.3 %









HII
4101 Washington Ave. • Newport News, VA 23607
www.HII.com
Page 12 of 12