Q3 2024 Huntington Ingalls Industries Inc Earnings Call Transcript
Key Points
- Huntington Ingalls Industries Inc (HII) reported third quarter revenue of $2.7 billion, showcasing strong performance in its Mission Technologies division with 14% revenue growth year-to-date over 2023.
- The company secured significant contract wins in the third quarter, totaling $11 billion in potential contract value, including a $6.7 billion contract with the US Air Force.
- HII's Mission Technologies division achieved a third quarter funded book-to-bill ratio of 2.2, indicating strong demand and future revenue potential.
- The company received a $9.6 billion award for the multi-ship procurement of amphibious warships, providing strong revenue visibility for years to come.
- HII ended the third quarter with a backlog of $49.4 billion, of which approximately $28 billion is currently funded, ensuring long-term revenue stability.
- Huntington Ingalls Industries Inc (HII) reported a decrease in third quarter earnings per share to $2.56, down from $3.70 a year ago, indicating a decline in profitability.
- The company faced challenges with late critical material deliveries and reduced experience levels within its teams, leading to labor inefficiency and rework.
- HII's shipbuilding operating margin guidance for 2024 was revised down to 5% to 6%, reflecting ongoing performance challenges and cost pressures.
- The company updated its 2024 free cash flow guidance to a range of $0 to $100 million, significantly lower than previous expectations.
- HII is experiencing delays and cost increases on ships negotiated prior to COVID, which did not anticipate the significant disruption of the workforce and supply chain or subsequent inflation.
Ladies and gentlemen, thank you for standing by, and welcome to the third quarter 2024 HII earnings conference call. (Operator Instructions) I would now like to hand the call over to Christie Thomas, Vice President of Investor Relations. Mrs. Thomas, you may begin.
Thank you, operator, and good morning, everyone. Welcome to the HII third quarter 2024 conference call. Matters discussed on today's call that constitute forward-looking statements, including our estimates regarding the company's outlook, involve risks and uncertainties and reflect the company's judgment based on information available at the time of this call. These risks and uncertainties may cause our actual results to differ materially.
Additional information regarding these factors is contained in today's press release and the company's SEC filing. We also will refer to certain non-GAAP financial measures for additional disclosures about these non-GAAP measures including reconciliations to comparable
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