Ingalls Shipbuilding successfully completed acceptance trials for the US Coast Guard’s ninth National Security Cutter. (Photo: Huntington Ingalls Industries)
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.
Recent developments in France and the UK highlight how autonomous helicopters are becoming central to naval force design as navies seek to integrate crewed and uncrewed systems at sea.
The platforms will be tested in multiple missions to define performance requirements for a coming acquisition programme.
As HII prepares to deliver its latest AI-enabled uncrewed surface vessel later this year, its major UK facility expansion aligns with the UK Royal Navy’s plans for a hybrid fleet.
The UK, the US and Australia have all been working on “extra-large” uncrewed underwater vehicles, but China’s reported development of a significantly larger capability demonstrates the country’s rapid advancement in underwater warfare.
The first Arctic Security Cutter will be built by Rauma Marine Constructions to be deployed in the US Arctic waters.
The effort to provide the US Navy with Trump-class battleships might face financial, production and doctrinal obstacles.
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