Huntington Ingalls Releases First Quarter Profit Statements

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NEWPORT NEWS—Huntington Ingalls Industries (HII), the parent company of the Newport News Shipyard, reported first quarter revenues of $2.3 billion, up less than 1 percent from the first quarter of 2020.

Newport News Shipyard’s contribution to HII’s overall revenues including first quarter 2021 revenues of $1.4 billion, an increase of $66 million, or 4.9 percent from the same period of 2020. These revenues were driven primarily by higher revenues for aircraft carriers, naval nuclear support services, and submarines.

Aircraft carrier revenues increased primarily as a result of higher volumes on Enterprise (CVN 80), the refueling and complex overhaul (RCOH) of USS John C. Stennis (CVN 74) and Doris Miller (CVN81), partially offset by lower volumes on the John F. Kennedy (CVS 79) and the RCOH of USS George Washington (CVN 73).

Naval nuclear support services revenues increased primarily as a result of higher volumes in carrier and submarine fleet support services, offset by a lower volume in facility maintenance services. Submarine revenues increased primarily as a result of higher volumes on the Columbia-class submarine program and the Virginia-class submarine (VCS) program. The higher volume on the VCS program was due to higher volumes on Block V boats, offset by lower volumes on Block IV boats.

Key milestones for Newport News Shipyard this quarter include:

–                 Launched Virginia-class submarine Montana (SSN 794)

–                 Achieved pressure hull complete on Virginia-class submarine New Jersey (SSN 796)

–                 Awarded $3 billion contract for USS John C. Stennis (CVN 74) RCOH

–                 Awarded contract modifications for construction of the tenth Virginia-class Block V submarine

–                 John F. Kennedy (CVN 79) is approximately 81 percent complete

–                 RCOH of USS George Washington (CVN 73) is approximately 87 percent complete

HII Technical Solutions Corporation, which is located in City Center at Oyster Point, also contributed to the overall HII revenue numbers. Technical Solutions revenue for the first quarter of 2021 were $259 million, a decrease of $58 million from the same period in 2020, primarily due to the divestitures of HHI’s oil and gas business and the San Diego Shipyard, as well as lower volumes in Defense & Federal Solutions, partially offset by the acquisition of Hydroid in March 2020.

Tech Solutions segment operating income for the first quarter of 2021 was $7 million, compared to a segment operating loss of $7 million in the first quarter of 2020. The increase was primarily driven by improved performance in Defense & Federal Solutions and Nuclear & Environmental Services, as well as a gain on the sale of HII’s oil and gas business.

Key milestones for Technical Solutions this quarter include:

–                 Completed the first phase of Unmanned Systems Center of Excellence Campus with the construction of a 22,000 square foot facility

–                 Awarded position on a $250 million U.S. Navy Intelligence, Surveillance, and Reconnaissance Support Contract

–                 Awarded a contract to provide maintenance, training, and planning support for U.S. Navy aircraft carriers