Huntington Ingalls Industries, Inc. (HII) - Stock Analysis
Last updated: Aug 2, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Defense name with a clear earnings catalyst: Q2 2026 adjusted EPS of $5.27 beat the $3.80 estimate, sales were $3.4B, backlog was about $57.3B, and recent Navy/submarine/UUV contracts support visibility. Shares are up from 268.76 to 327.01 over 21 trading days.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Thin Margins ⢠Cash Burn ⢠Manageable Leverage HII is still profitable with manageable leverage and solid historical returns, but thin margins, weak near-term cash flow, and a sharply depleted cash balance temper the outlook.
Price Behavior
Key Price Behavior Insights: ⢠Higher highs ⢠Reclaimed $300 ⢠Extended rally Support Level: $319-$320 Resistance Level: $320 area Over the last month, HII rebounded sharply from a July low near $268.76 to $326.45, reclaiming $300-$320 and signaling a bullish short-term trend, though the move is extended and could pull back if $319-$320 support fails.
Sentiment & News
Key News Insights: ⢠Earnings beat ⢠Backlog growth ⢠Budget risk Huntington Ingalls beat Q2 expectations on stronger ship volumes and margin gains, boosted backlog and dividend returns, but its growth outlook remains constrained by defense-budget uncertainty.
AI Summary
HII's new submarine awards and raised guidance improve long-term visibility, but the investment case now hinges on proving that higher shipbuilding volume can turn into durable free cash flowâbecause the latest quarter showed earnings improving while cash burn and liquidity remain the main constraint, limiting any full re-rating until execution is sustained.
Description
Huntington Ingalls Industries is a U.S. shipbuilder and maritime services company operating three units: Ingalls Shipbuilding, Newport News Shipbuilding, and Technical Solutions. It designs, constructs, and overhauls a range of surface and nuclear-powered vessels for the U.S. Navy and Coast Guard, and provides nuclear refueling, maintenance, and disposal services. The firm also delivers lifecycle sustainment, naval nuclear support, specialized IT and mission services for defense and federal clients, and environmental and management services to government and industry; it was founded in 1886 and is based in Newport News, Virginia.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Aug 3 | Aug 10 | HII | Huntington Ingalls Industries, Inc. | Defense name with a clear earnings catalyst: Q2 2026 adjusted EPS of $5.27 beat the $3.80 estimate, sales were $3.4B, backlog was about $57.3B, and recent Navy/submarine/UUV contracts support visibility. Shares are up from 268.76 to 327.01 over 21 trading days. | Active | +0.0% |