HII today reported results for the first quarter of fiscal 2025.
First quarter 2025 revenues of $2.7 billion were down 2.5% from the first quarter of 2024, driven by lower volume at Newport News Shipbuilding, Ingalls Shipbuilding and Mission Technologies.
Operating income in the first quarter of 2025 was $161 million and operating margin was 5.9%, compared to $154 million and 5.5%, respectively, in the first quarter of 2024. The increases were primarily driven by a more favorable operating /CAS adjustment, as well as better segment operating results compared to the prior year.
Segment operating income2 in the first quarter of 2025 was $171 million and segment operating margin2 was 6.3%, compared to $170 million and 6.1%, respectively, in the first quarter of 2024. The increases were driven primarily by stronger results at Mission Technologies and Newport News Shipbuilding, largely offset by results at Ingalls Shipbuilding.
Net earnings in the quarter were $149 million, compared to $153 million in the first quarter of 2024. Diluted earnings per share in the quarter was $3.79, compared to $3.87 in the first quarter of 2024.
Net cash used in operating activities in the quarter was $395 million and free cash flow2was negative $462 million, compared to net cash used in operating activities of $202 million and free cash flow1 of negative $274 million in the first quarter of 2024.
New contract awards in the first quarter of 2025 were $2.1 billion, bringing total backlog to approximately $48.0 billion as of March 31, 2025.
“We are encouraged by the pace of our operational initiatives in 2025. We expect throughput to ramp as we move through the year and, coupled with our cost savings initiatives, we expect steady improvement in support of our operational and financial goals,” said Chris Kastner, HII’s president and CEO. “We are also very supportive of the administration’s commitment to expand our nation’s shipbuilding capabilities and the maritime industrial base.”
1The financial outlook, expectations and other forward looking statements provided by the company for 2025 and beyond reflect the company’s judgment based on information available at the time of this release.
2Non-GAAP measures. See Exhibit B for definitions and reconciliations.
