Huntington Ingalls Industries, Inc. — Cyborg Score 8/10

Strategic Profile

For decades, HII has been the sole source of the U.S. Navy's nuclear-powered aircraft carriers and a co-monopolist in the construction of nuclear submarines. Today, the company is transitioning from a traditional heavy manufacturer into a high-tech defense conglomerate, leveraging its Mission Technologies segment to integrate artificial intelligence, unmanned systems, and cyber capabilities into the fleet of the future. Its $55 billion backlog and unique status as the world's only nuclear carrier builder provide a "moat" that few companies can match.

Cyborg Score Rationale

HII reported $12.5 billion in 2025 revenue with an 8.2 percent increase, diluted earnings per share rose 10.2 percent year-over-year to $15.39, while free cash flow increased to $800 million, up from $40 million in 2024. The company's dominant market position, massive backlog, and mission-critical defense products justify a strong rating, though labor scarcity and execution challenges prevent a higher score.

Top Insights

• With more than 40 ships at Ingalls and Newport News in active construction or modernization, HII's focus in 2026 is to build on this momentum and continue to increase shipbuilding throughput.
• The AUKUS pact has become a massive tailwind. HII is a central player in the effort to provide Australia with nuclear-powered submarines, a project that is expected to provide decades of service and maintenance revenue.
• The "Green Labor" challenge is acute. HII must hire and train thousands of workers to replace retiring veterans.
• HII forecasts 2026 shipbuilding revenue between $9.7 billion and $9.9 billion with operating margins expected to range from 5.5 percent to 6.5 percent. Mission Technologies' revenue is projected between $3 billion and $3.2 billion, with margins of about 5 percent. The company also forecast free cash flow between $500 million and $600 million in 2026.

Named Competitors

• Naval Shipbuilding — Surface combatants and submarine construction
• Defense Services & Integration — High-end C5ISR and defense technology services
• Defense & Space — Integrated defense systems and naval platforms
• Mission Technologies — AI, cyber, and federal consulting services

Recent Developments

• (February 2026) Stock trading at $418.78/share with 159.68% return over past twelve months
• (February 2026) 2025 earnings beat expectations with 10.2% EPS growth and $800M free cash flow
• (June 2025) U.S. Coast Guard cancelled 11th cutter contract due to continued schedule delays
• (2025) Delivery of Virginia-class submarine Massachusetts and Flight III destroyer Ted Stevens

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