HII stock forecast, quote, news & analysis

Key Takeaways

• HII reported record 2025 revenue of $12.5 billion, up 8.2%, with Q4 EPS of $4.04 beating estimates.
• Stock hit new 52-week highs near $460 before recent pullback to around $437, reflecting strong YTD gains of nearly 29%.
• Key contracts and partnerships, including AI welding and unmanned tech, bolster $56.9 billion backlog.
• 2026 guidance projects shipbuilding revenue of $9.7-$9.9 billion, with free cash flow at $500-$600 million.
• Analysts maintain a Moderate Buy consensus, with average price target around $370-$400.

Current Market Snapshot

Huntington Ingalls Industries (HII) stock has shown robust performance in recent weeks, trading near the upper end of its 52-week range amid heightened defense sector interest. The shares have benefited from strong operational execution and a massive backlog, driving gains even as broader markets fluctuate. Price action reflects investor confidence in HII's shipbuilding leadership, with volatility tied to contract awards and earnings momentum. Trading around $437 with a market cap over $17 billion, the stock's PE ratio of 28.42 underscores its growth profile in naval programs.

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Recent Developments Driving HII Price Action

Huntington Ingalls Industries (HII), the leading U.S. military shipbuilder, has seen its stock surge over 150% in the past year, hitting 52-week highs near $460 before a modest pullback. This momentum stems from robust Q4 and full-year 2025 results announced on February 5, 2026, which propelled shares initially before a 10-11% dip on cautious guidance.

Revenue reached a record $12.5 billion for 2025, up 8.2% year-over-year, with Q4 at $3.48 billion (+15.7%) topping estimates of $3.1 billion. Diluted EPS hit $15.39 annually (+10.2%) and $4.04 in Q4 (+8.53% beat). Shipbuilding throughput grew 14%, fueled by deliveries like the Virginia-class submarine Massachusetts (SSN 798) and destroyer Ted Stevens (DDG 128). Operating income rose to $657 million, and free cash flow soared to $800 million from $40 million prior year, ending with $774 million cash.

However, the post-earnings drop reflected 2026 guidance: shipbuilding revenue $9.7-$9.9 billion (modest growth), margins 5.5-6.5% (flat to slight uptick), Mission Technologies $3-$3.2 billion, and free cash flow $500-$600 million. Q1 free cash flow is expected negative (~$600 million outflow) due to working capital normalization. Management raised medium-term shipbuilding CAGR to ~6% from 4%, targeting another 15% throughput gain.

Operational milestones bolstered sentiment: Ingalls Shipbuilding authenticated the keel for Philadelphia (LPD 32) amphibious ship. Partnerships advanced, including a February MOU with Path Robotics for AI-powered welding to boost efficiency amid labor constraints, and collaborations on unmanned maritime systems with Nominal and REMUS 100 AUV reliability. Earlier wins like a $25.4 billion microelectronics contract spot, $151 billion missile defense ceiling, and frigate design fueled prior rallies.

Analyst actions mixed: Citi raised target to $465 (Buy), BofA to Neutral/$400 from Underperform, Goldman trimmed to $419/$425 but removed from Conviction List. Consensus: Moderate Buy, average target ~$370-$401, implying downside from peaks but upside potential on execution. Geopolitical tensions and defense budget talks supported the sector, though rising oil prices posed minor headwinds.

2026 Outlook and Key Factors to Monitor

As Huntington Ingalls Industries (HII) navigates 2026, investors should track execution on its $56.9 billion backlog, emphasizing timely Navy contracts for Virginia- and Columbia-class submarines to sustain 15% throughput growth. Shipbuilding revenue guidance of $9.7-$9.9 billion and Mission Technologies at $3-$3.2 billion hinge on workforce expansion (6,600+ hires), 30% outsourcing rise, and capital investments at 4-5% of sales. Free cash flow of $500-$600 million supports dividends and buybacks amid Q1 pressures.

Opportunities lie in naval expansion, AI/automation integrations like Path Robotics welding, and unmanned systems amid geopolitical demands. Risks include supply chain disruptions, labor shortages, margin choppiness from program ramps, and contract delays. Competitive positioning in frigates, carriers, and missile defense remains strong, with medium-term ~6% CAGR signaling sustained demand. Regulatory shifts, defense budgets, and inflation will influence cost structures and profitability.

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