HII (NYSE: HII) released its recent financial results and achieved several milestones in the third quarter of 2023. In the three months that ended Sept. 30, 2023, total revenues during the quarter increased 7.2 percent to $2.81 billion versus Q3 2022, a new third-quarter record, while new contract awards hit $5.4 billion.
The company said Tuesday its Mission Technologies and Ingalls Shipbuilding segments drove revenue growth. Net earnings rose by 7.2 percent year-over-year to $148 million, while free cash flow reached $293 million compared to the negative $96 million in the same quarter last year.
“It was another outstanding quarter of growth across all three divisions,” said Chris Kastner, president and CEO of HII. “Our financial results demonstrate our commitment to achieving our goals of steady operational performance, execution on our existing contracts, and strong free cash flow generation.”
The notable awards include a $347 million contract from the U.S. Navy for Lionfish small unmanned undersea vehicle production, training and engineering and a $244 million task order to integrate Minotaur in support of the Navy, Marine Corps and Coast Guard.
HII raised its financial guidance for 2023. The company expects the Shipbuilding and Mission Technologies revenues to be $8.6 billion and $2.55 billion, respectively. Its year-end FCF forecast is $500 million. Its stock popped 5.82 percent to $233.85 after the earnings release.
