HII struggles to grow despite Alion acquisition
Ingalls Shipbuilding successfully completed acceptance trials for the US Coast Guard’s ninth National Security Cutter. (Photo: Huntington Ingalls Industries)
Huntington Ingalls Industries has released its Q3 2021 report, showing limited growth from Q3 2020.
Operating income for Huntington Ingalls Industries (HII) in the Q3 2021 was $118 million and the operating margin was 5%, marking a fall from the Q3 2020 figures of $222 million operating income and 9.6% operating margin.
The decrease in operating income and operating margin were primarily the result of a less favourable operating FAS/CAS adjustment (the difference between expenses for pensions and other post-retirement benefits and the expenses included in operating income).
Net earnings in Q3 2021 reached $147 million, compared to $222 million in Q3 2020. Diluted earnings per share in the the quarter were $3.65, compared to $5.45 in the same period of 2020.
This reduction can also be attributed to lower revenues from existing programmes such as the Legend-class National Security Cutter, the Arleigh Burke-class guided-missile destroyer and amphibious assault ships.
New contract awards for HII in Q3 2021 totalled approximately $600 million, bringing the total backlog to approximately $50.1 billion as of 30 September 2021.
Moreover, the acquisition of Alion Science and Technology — and major contract awards such as a recent $273 million USN maintenance contract — indicate strong potential for growth in Q4.
You may also like
More from Naval Warfare
-
![From REPMUS to procurement: the four capabilities NATO navies want from USVs]()
From REPMUS to procurement: the four capabilities NATO navies want from USVs
Syos Aerospace will channel its first outside capital into research, production and overseas reach as navies seek jam-resistant, integrated uncrewed fleets.
-
![Patria NEMO Navy: Unlocking unmatched versatility and protection for modern naval forces]()
Patria NEMO Navy: Unlocking unmatched versatility and protection for modern naval forces
The Patria NEMO Navy mortar system marks a revolutionary advance in maritime defence technology, offering unparalleled benefits to customers who demand performance, adaptability and safety in their naval operations.
-
![Canada targets 2027 frigate trials for CU179 Peregrine uncrewed helicopter]()
Canada targets 2027 frigate trials for CU179 Peregrine uncrewed helicopter
The Royal Canadian Navy’s CU179 Peregrine will undergo Halifax-class frigate trials in 2027 ahead of initial operational capability in 2028, while River-class destroyer integration arrangements remain undefined.
-
![Argentina’s submarine and frigate acquisitions resurface with $3.5bn funding plan]()
Argentina’s submarine and frigate acquisitions resurface with $3.5bn funding plan
Buenos Aires set out foreign loans worth $3.5 billion in its draft 2027 budget, opening a contest in which Naval Group and TKMS could lead the field.
-
![AUKUS heavyweight torpedo test raises questions over future armed UUV requirements]()
AUKUS heavyweight torpedo test raises questions over future armed UUV requirements
A heavyweight torpedo firing from the Royal Navy’s uncrewed submarine XV Excalibur suggests a shift beyond surveillance, with allied navies eyeing strike roles for large autonomous undersea vessels.
-
![Industrial teams prepare roadmap for Indonesia aircraft carrier transformation]()
Industrial teams prepare roadmap for Indonesia aircraft carrier transformation
Fincantieri and PT PAL have agreed on a framework to modernise the former Giuseppe Garibaldi, with drones, communications and broader Italian–Indonesian industrial ties involved.
