John F. Kennedy Successfully Completes Builder's Sea Trials
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy HII?
Source: Newsfilter
- Successful Sea Trials: HII's Newport News Shipbuilding has successfully completed builder's sea trials for the John F. Kennedy (CVN 79), marking a significant milestone for the second Gerald R. Ford-class nuclear-powered aircraft carrier, which is expected to enhance the U.S. Navy's operational capabilities.
- System Testing: During the sea trials, shipbuilders collaborated with sailors and Navy personnel to test critical ship systems and components, ensuring reliability in actual operations and preparing for the carrier's future integration into the fleet.
- Technological Advantages: The Ford-class carriers feature enhancements that improve operational efficiency and reduce manning requirements, while the new nuclear power plant and increased electrical generation capacity will further bolster the carrier's combat capabilities, ensuring its strategic importance globally.
- Commitment to National Security: HII Vice President Derek Murphy emphasized that the sea trials of the John F. Kennedy reflect the determination of shipbuilders, underscoring the company's commitment to delivering critical assets that protect freedom worldwide.
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Analyst Views on HII
Wall Street analysts forecast HII stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for HII is 344.80 USD with a low forecast of 300.00 USD and a high forecast of 376.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
4 Buy
1 Hold
1 Sell
Moderate Buy
Current: 369.380
Low
300.00
Averages
344.80
High
376.00
Current: 369.380
Low
300.00
Averages
344.80
High
376.00
About HII
Huntington Ingalls Industries, Inc. is a global, all-domain defense provider. The Company delivers ships and all-domain solutions in service of the nation. It delivers critical capabilities extending from ships to unmanned systems, cyber, ISR, AI/ML and synthetic training. It operates through three segments: Ingalls Shipbuilding (Ingalls), Newport News Shipbuilding (Newport News), and Mission Technologies. Through its Ingalls segment, the Company designs and constructs non-nuclear ships for the United States Navy and Coast Guard, including amphibious assault ships, expeditionary warfare ships, surface combatants, and national security cutters (NSC). The core business of its Newport News segment is designing and constructing nuclear-powered aircraft carriers and submarines, and the refueling and overhaul and the inactivation of nuclear-powered aircraft carriers. The Company’s Mission Technologies segment develops integrated solutions that enable connected, all-domain force.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Performance by Major Firms: Lockheed Martin, Northrop Grumman, and Huntington Ingalls Industries have all seen their stock prices rise over 20% in early 2026, with Lockheed Martin leading at a 26% increase, indicating strong market confidence and investment enthusiasm in the defense industry.
- Increased NATO Spending Goals: Under pressure from the Trump administration, NATO's defense spending target has been raised from 2% to 5% of GDP by 2035, prompting major economies like Germany to significantly ramp up defense investments, with Germany expected to meet this target by 2030, further driving growth in the global defense market.
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See More
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- Significant Revenue Growth: Huntington Ingalls reported total revenues of $12.5 billion for 2025, reflecting an 8.2% year-over-year increase, with earnings per share at $15.39, indicating strong performance in shipbuilding that is expected to enhance shareholder returns.
- Order and Contract Expansion: The company secured $16.9 billion in new awards for 2025, with all three divisions achieving record revenues, demonstrating sustained competitiveness in the defense market and potential for increased market share in the future.
- Production Efficiency Improvement: HII achieved a 14% year-over-year increase in throughput, with a target of an additional 15% increase in 2026, driven by hiring 6,600 shipbuilders and meeting a $250 million cost reduction target, further optimizing operational efficiency to meet market demand.
- Mid-term Growth Outlook: The company raised its medium-term shipbuilding revenue growth guidance from 4% to 6%, with 2026 revenue expectations between $9.7 billion and $9.9 billion, reflecting confidence in future market demand while emphasizing the need for effective contract acquisition and production scheduling risk management.
See More
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See More
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- Net Income Growth: Huntington Ingalls reported net income of $159 million, or $4.04 per share, exceeding the consensus estimate of $3.89, and marking a significant increase from $123 million, or $3.15 per share, a year earlier, indicating improved profitability.
- Revenue Increase: The company's quarterly revenue rose to $3.48 billion from $3.00 billion, surpassing Wall Street's expectation of $3.1 billion, primarily driven by strong demand in shipbuilding and Mission Technologies, reflecting robust market interest in its offerings.
- Cash Flow Outlook Downgrade: Despite the earnings beat, Huntington Ingalls forecasts free cash flow of $500 million to $600 million for fiscal 2026, significantly lower than the $800 million generated in 2025, suggesting potential cash flow pressures that may impact investor confidence.
- Delivery Milestones Achieved: During the quarter, the company successfully delivered the Virginia-class submarine Massachusetts and the guided missile destroyer Ted Stevens, marking key progress in ship delivery, although overall operating margins remain under pressure.
See More
Huntington Ingalls Reports Strong Q4 2025 Earnings with Significant Growth
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- Significant Revenue Growth: The company achieved $3.5 billion in revenue for Q4, marking a 16.7% year-over-year increase and surpassing market expectations by $400 million, reflecting robust demand in the defense and shipbuilding sectors and further solidifying its market position.
- Cash Flow Improvement: Net cash provided by operating activities reached $1.196 billion in 2025, with free cash flow at $800 million, a substantial increase from $393 million and $40 million in 2024, enhancing the company's financial flexibility and investment capacity.
- Optimistic Outlook: HII projects FY26 shipbuilding revenue between $9.7 billion and $9.9 billion, with expected operating margins between 5.5% and 6.5%, demonstrating confidence in future growth, particularly through continued investments in shipbuilding and Mission Technologies.
See More
