HII (NYSE: HII) released its fourth quarter and full-year 2023 earnings results on Feb. 1, 2024, reporting record revenues in both periods and a substantial backlog of approximately $48.1 billion as of Dec. 31, 2023. All of its three divisions reported higher volumes.
HII President and CEO Chris Kastner said in a statement published Thursday, “2023 was a strong year for HII. We continue to invest both in our shipyards and in IRAD to both expand capacity and develop new products and solutions for our customers.”
In Q4 2023, sales and service revenues rose 13 percent to a record $3.17 billion. For the full year, the top line increased 7.3 percent year-over-year to a record $11.45 billion. Notably, net earnings in the fourth quarter soared 122.8 percent to $274 million compared to the same period in 2022.
Other financial highlights include $12.5 billion of contract awards in 2023 and $692 million in free cash flow, representing a 40 percent jump from a year ago. HII’s shipbuilding revenues for the fourth quarter climbed 21.6 percent year-over-year to $800 million due to higher volumes in surface combatants and amphibious assault ships.
“Our growth rate for the year of over 7 percent and our free cash flow generation at almost $700 million illustrate that we are entering a period of accelerated growth and increased free cash flow generation at HII,” added Kastner.
HII projects total revenue and Shipbuilding revenue growth of 4 percent and cash generation of $3.6 billion over the next five years. Kastner said management’s expectations are grounded in the assumption that HII must deliver on its commitments to customers.
Following the earnings release, HII’s stock popped 3.43 percent to $267.81.
