HII posts record Q1 revenue as shipbuilding backlog swells to $54B

HII (NYSE:HII) delivered a high-volume start to fiscal 2026, reporting double-digit revenue growth and a significant expansion of its contract backlog as the nation’s largest shipbuilder ramps up production for the U.S. Navy.

The Virginia-based defense giant reported first-quarter revenue of $3.1 billion, a 13.4% increase over the same period last year.

Net earnings for the quarter reached $149 million, resulting in diluted earnings per share (EPS) of $3.79.

Operating income stood at $155 million, representing a 5% margin, as the company balanced increased labor costs with high-velocity production across its key programs.

A standout highlight of the quarter was the company’s commercial momentum, securing $4 billion in new contract awards.

This intake pushed HII’s total backlog to a record $54 billion, providing multi-year visibility into the company’s revenue pipeline.

Major drivers included continued work on Virginia-class submarines and the Gerald R. Ford-class aircraft carrier program.

The company’s Mission Technologies segment also showed continued strength, benefiting from increased demand for unmanned systems, C5ISR, and AI-driven defense solutions.

This diversification away from traditional shipbuilding continues to provide HII with higher-margin growth opportunities in the rapidly evolving defense tech landscape.

Financially, HII remains in a strong position, reaffirming its full-year fiscal 2026 guidance.

This includes a projected free cash flow in the range of $500 million to $600 million.