Huntington Ingalls rallies on Q3 beat, raised outlook on shipbuilding and sea drone demand

Huntington Ingalls (HII) reported Q3 EPS of $5.48, up nearly 49% and above the $4.36 estimate, on record revenue of $3.54 billion, up almost 11% and above the $3.38 billion consensus. Shipbuilding growth drove the beat, with Newport News sales up 18%. The company won $32.4 billion in contract awards in the quarter, bringing the year-to-date total to $43.1 billion, and secured about 90% of expected shipbuilding revenue through 2030. Management raised the 2026 shipbuilding revenue forecast to $10.5-$10.7 billion from $10.2-$10.4 billion and lifted the Mission Technologies operating margin outlook to about 6%. Mission Technologies won 'landmark' maritime awards for autonomous vehicles, including the Medium Unmanned Surface Vessel and the Lionfish Small Unmanned Undersea Vehicle. HII stock initially popped more than 17% early Thursday, paring gains to around 10%, with volume more than 1,000%