America’s largest shipbuilder, Huntington Ingalls Industries (NYSE: HII), reported third quarter 2020 revenues of $2.3 billion, up 4.3% from the third quarter of 2019. The increase was driven by growth at both HII’s Newport News and Ingalls Shipbuilding divisions.
“We are very pleased with shipbuilding program execution in the quarter, particularly as we continue to navigate our way through the challenges posed by COVID-19,” said Mike Petters, HII’s president and CEO. “In addition to achieving a number of key shipbuilding program milestones during the quarter, we also broke ground on our Unmanned Systems Center of Excellence, a facility purpose-built for unmanned systems prototyping, production and testing as we continue to invest in and expand our unmanned capabilities.”
Operating income in the quarter was $222 million and operating margin was 9.6%, compared to $214 million and 9.6%, respectively, in the third quarter of 2019.
Net earnings in the quarter were $222 million, compared to $154 million in the third quarter of 2019. The increase in net earnings was the result of lower federal income taxes due to a claim for higher research and development tax credits for prior years and a favorable change in the non-operating portion of retirement benefits, as well as higher operating income, partially offset by higher interest expense. Diluted earnings per share in the quarter was $5.45, compared to $3.74 in the same period of 2019.
Third quarter cash from operations was $222 million and free cash flow1 was $160 million, compared to $363 million and $250 million, respectively, in the third quarter of 2019.
New contract awards in the quarter were approximately $1.6 billion, bringing total backlog to approximately $45.3 billion as of September 30, 2020.