News Release

Contacts: Christie Thomas (Investors)

Brooke Hart (Media) [Link]@[Link]
[Link]@[Link] (757) 380-2104
(202) 264-7108

HII Reports Fourth Quarter and Full Year 2025 Results

• 2025 revenue increased 8.2% to $12.5 billion

• 2025 diluted earnings per share increased 10.2% to $15.39
• Achieved critical shipbuilding milestones in 2025, including delivery of Virginia-class
submarine Massachusetts (SSN 798) and guided missile destroyer Ted Stevens (DDG 128)
• Invested over $400 million in capital improvements in 2025
• Achieved ~14% shipbuilding throughput growth in 2025, targeting ~15% growth in 2026

NEWPORT NEWS, Va. (February 5, 2026) - HII (NYSE:HII) reported fourth quarter 2025
revenues of $3.5 billion compared to $3.0 billion in the fourth quarter of 2024. The increase was
driven by growth across all business segments.

Fourth quarter 2025 operating income of $172 million and operating margin of 4.9%, compared to
$110 million and 3.7%, respectively, in the fourth quarter of 2024.

Segment operating income1 in the fourth quarter of 2025 was $195 million and segment operating
margin1 was 5.6%, compared to $103 million and 3.4%, respectively, in the fourth quarter of 2024.
The increases were driven by improved operating results across all business segments.

Diluted earnings per share in the quarter was $4.04, compared to $3.15 in the fourth quarter of
2024.

For the full year, revenues of $12.5 billion increased 8.2% over 2024, due to growth across all
business segments.

Operating income in 2025 was $657 million and operating margin was 5.3%, compared to $535
million and 4.6%, respectively, in 2024.

Segment operating income1 in 2025 was $717 million and segment operating margin1 was 5.7%,
compared to $573 million and 5.0%, respectively, in 2024, the increase was driven by improved
operating results across all business segments.

Diluted earnings per share for the full year was $15.39, compared to $13.96 in 2024.

Net cash provided by operating activities in 2025 was $1,196 million and free cash flow1 was
$800 million, compared to $393 million and $40 million, respectively, in 2024.

1Non-GAAP measures. See Exhibit B for definitions and reconciliations.

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 News Release
Chris Kastner, HII’s president and CEO, said, “We made solid progress on our operational
initiatives in 2025 and enter 2026 with strong momentum. With more than 40 ships at Ingalls and
Newport News in active construction or modernization, our focus in 2026 is clear: We must build
on this momentum, and continue to increase our shipbuilding throughput. The U.S. Navy and all
of our defense customers need our ships and technologies now more than ever and we are
committed to delivering for our customer and the nation.”

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Results of Operations
Three Months Ended Year Ended
December 31 December 31
($ in millions, except per share
amounts) 2025 2024 $ Change % Change 2025 2024 $ Change % Change
Sales and service revenues $ 3,476 $ 3,004 $ 472 15.7 % $ 12,484 $ 11,535 $ 949 8.2 %
Operating income 172 110 62 56.4 % 657 535 122 22.8 %
Operating margin % 4.9 % 3.7 % 129 bps 5.3 % 4.6 % 62 bps
Segment operating income1 195 103 92 89.3 % 717 573 144 25.1 %
Segment operating margin % 1 5.6 % 3.4 % 218 bps 5.7 % 5.0 % 78 bps
Net earnings 159 123 36 29.3 % 605 550 55 10.0 %
Diluted earnings per share $ 4.04 $ 3.15 $ 0.89 28.3 % $ 15.39 $ 13.96 $ 1.43 10.2 %
1
Non-GAAP measures that exclude non-segment factors affecting operating income. See Exhibit B for definitions and reconciliations.

Segment Operating Results

Ingalls Shipbuilding
Three Months Ended Year Ended
December 31 December 31
($ in millions) 2025 2024 $ Change % Change 2025 2024 $ Change % Change
Sales and service revenues $ 889 $ 736 $ 153 20.8 % $ 3,078 $ 2,767 $ 311 11.2 %
Segment operating income 68 46 22 47.8 % 233 211 22 10.4 %
Segment operating margin % 7.6 % 6.3 % 140 bps 7.6 % 7.6 % (6) bps

Ingalls Shipbuilding revenues for the fourth quarter of 2025 were $889 million, an increase of $153 million, or
20.8%, from the same period in 2024, driven by higher volumes in amphibious assault ships and surface
combatants.

Ingalls Shipbuilding segment operating income for the fourth quarter of 2025 was $68 million and segment
operating margin was 7.6%, compared to $46 million and 6.3% in the same period in the prior year, respectively.
These increases were primarily due to higher volumes and lower unfavorable cumulative catch-up adjustments for
amphibious assault ships and surface combatants compared to the prior year period.

Ingalls Shipbuilding 2025 revenues were $3.1 billion, an increase of $311 million, or 11.2%, compared to 2024,
primarily driven by higher volumes in surface combatants and amphibious assault ships.

Ingalls Shipbuilding segment operating income in 2025 was $233 million and segment operating margin was 7.6%,
compared to $211 million and 7.6% in 2024, respectively. The increase in operating income was primarily due to
higher volumes and contract adjustments in surface combatants, partially offset by lower performance in
amphibious assault ships.

Key 2025 Ingalls Shipbuilding milestones:

• Launched and christened guided missile destroyer Jeremiah Denton (DDG 129)
• Christened amphibious transport dock Harrisburg (LPD 30)
• Began fabrication of amphibious transport dock Philadelphia (LPD 32)
• Signed MOA with HD Hyundai Heavy Industries to explore opportunities to collaborate on accelerating ship
production
• Selected by the U.S. Navy to design and build the future frigate FF(X)
• Delivered guided missile destroyer Ted Stevens (DDG 128) to the U.S. Navy

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Newport News Shipbuilding
Three Months Ended Year Ended
December 31 December 31
($ in millions) 2025 2024 $ Change % Change 2025 2024 $ Change % Change
Sales and service revenues $ 1,891 $ 1,588 $ 303 19.1 % $ 6,507 $ 5,969 $ 538 9.0 %
Segment operating income 84 38 46 121.1 % 331 246 85 34.6 %
Segment operating margin % 4.4 % 2.4 % 205 bps 5.1 % 4.1 % 97 bps

Newport News Shipbuilding revenues for the fourth quarter of 2025 were $1.9 billion, an increase of $303 million,
or 19.1%, from the same period in 2024, primarily driven by higher volumes in submarines and aircraft carriers.

Newport News Shipbuilding segment operating income for the fourth quarter of 2025 was $84 million and segment
operating margin was 4.4%, compared to $38 million and 2.4% in the same period in the prior year, respectively.
These increases were primarily due to lower unfavorable cumulative catch-up adjustments for Virginia-class
submarine construction compared to the prior year period, as well as favorable contract adjustments on the
Virginia-class submarine program in the current period, partially offset by contract incentives on the Columbia-class
program received in the fourth quarter of 2024.

Newport News Shipbuilding 2025 revenues were $6.5 billion, an increase of $538 million, or 9.0%, compared to
2024, primarily driven by higher volumes in submarines and aircraft carriers.

Newport News Shipbuilding segment operating income for 2025 was $331 million and segment operating margin
was 5.1%, compared to $246 million and 4.1% in 2024, respectively. The increases were primarily driven by
contract adjustments in the Virginia-class submarine program, partially offset by contract adjustments and
incentives in 2024 in the aircraft carrier refueling and complex overhaul program.

Key 2025 Newport News Shipbuilding milestones:

• Closed the acquisition of South Carolina advanced manufacturing facility and began work at Newport
News Shipbuilding - Charleston Operations
• Successfully installed the first valve manifold assembly created by additive manufacturing technology on a
new construction aircraft carrier
• Awarded contract modification for construction of two additional Block V Virginia-class submarines
• Celebrated the keel laying of Virginia-class attack submarine Barb (SSN 804)
• Launched Virginia-class submarine Arkansas (SSN 800)
• Delivered Virginia-class submarine Massachusetts (SSN 798) to the U.S. Navy

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 Mission Technologies
Three Months Ended Year Ended
December 31 December 31
($ in millions) 2025 2024 $ Change % Change 2025 2024 $ Change % Change
Sales and service revenues $ 731 $ 713 $ 18 2.5 % $ 3,044 $ 2,937 $ 107 3.6 %
Segment operating income 43 19 24 126.3 % 153 116 37 31.9 %
Segment operating margin % 5.9 % 2.7 % 322 bps 5.0 % 3.9 % 108 bps

Mission Technologies revenues for the fourth quarter of 2025 were $731 million, an increase of $18 million, or
2.5%, from the same period in 2024. The increase was primarily due to higher volumes in Warfare Systems, Global
Security, and Unmanned Systems, partially offset by lower volumes in All-Domain Operations.

Mission Technologies segment operating income in the fourth quarter of 2025 was $43 million and segment
operating margin was 5.9%, compared to $19 million and 2.7% in the same period in the prior year, respectively.
The increases were primarily due to higher performance in Warfare Systems, Global Security and Unmanned
Systems, as well as the higher volumes noted above.

Mission Technologies 2025 revenues were $3.0 billion, an increase of $107 million, or 3.6%, compared to 2024,
primarily due to higher volumes in Warfare Systems, Global Security, and Unmanned Systems, partially offset by
lower volumes in All-Domain Operations.

Mission Technologies segment operating income in 2025 was $153 million and segment operating margin was
5.0%, compared to $116 million and 3.9% in 2024, respectively. The increases were primarily due to lower
purchased intangible amortization, higher performance in Warfare Systems, as well as the higher volumes
described above.

Mission Technologies results included approximately $89 million of amortization of purchased intangible assets in
2025, compared to approximately $99 million in 2024.

Mission Technologies EBITDA margin1 for full year 2025 was 8.6%, compared to 7.9% in 2024.
Key 2025 Mission Technologies highlights:
• Australian Submarine Supplier Qualification (AUSSQ): Awarded a multi-year contract to accelerate
integration of Australian suppliers into the U.S. submarine industrial base
• Directed Energy Leadership: Selected to develop an open architecture High-Energy Laser weapon system
for the U.S. Army’s Rapid Capabilities and Critical Technologies Office
• Naval Training Support: Secured a $147 million contract to provide shipboard and shore-based combat
training services for the U.S. Navy
• Army Training Solutions: Received multiple-award contract to deliver live training capabilities for the U.S.
Army’s Program Executive Office for Simulation, Training and Instrumentation
• Unmanned Systems Expansion:
◦ Delivered initial Lionfish small uncrewed undersea vehicles (SUUVs) to the U.S. Navy under a
multi-year program
◦ Announced orders for more than a dozen REMUS 300 SUUVs by Hitachi
◦ Achieved successful forward-deployed launch and recovery of the Yellow Moray UUV, a REMUS
600 variant, from the USS Delaware (SSN 791)
◦ Completed production of the 750th REMUS UUV, a REMUS 300, at HII’s Pocasset, MA facility
• Autonomy and AI Integration: Unveiled the ROMULUS family of unmanned surface vessels, powered by
HII’s Odyssey Autonomous Control System (ACS) software suite
• Strategic Partnerships and Investments:
◦ Partnered with Shield AI to advance modular, cross-domain mission autonomy
◦ Invested in a new integration and test facility to support the U.S. Army’s Enduring High-Energy
Laser (E-HEL) weapon system program

1Non-GAAP measures. See Exhibit B for definitions and reconciliations.

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HII’s Financial Outlook1 includes the following expectations:

• Medium term2 HII revenue growth of approximately 6%

• Medium term2 shipbuilding revenue growth of approximately 6%
• Medium term2 Mission Technologies revenue growth of approximately 5%
• FY26 shipbuilding revenue between $9.7 and $9.9 billion; expect shipbuilding operating margin3 between
5.5% and 6.5%
• FY26 Mission Technologies revenue between $3.0 to $3.2 billion, Mission Technologies segment operating
margin of approximately 5%; and Mission Technologies EBITDA margin3 between 8.4% and 8.6%
• FY26 free cash flow3 between $500 and $600 million

FY26 Outlook1
Shipbuilding Revenue $9.7B - $9.9B
Shipbuilding Operating Margin3 5.5% - 6.5%
Mission Technologies Revenue $3.0B - $3.2B
Mission Technologies Segment Operating Margin ~5%
Mission Technologies EBITDA Margin 3
8.4% - 8.6%

Operating FAS/CAS Adjustment ($44M)

Non-current State Income Tax Expense4 ~($20M)
Interest Expense ($105M)
Non-operating Retirement Benefit $213M
Effective Tax Rate ~17%

Depreciation & Amortization ~$330M

Capital Expenditures 4% - 5% of Sales
Free Cash Flow 3
$500M - $600M

1The financial outlook, expectations and other forward-looking statements provided by the company for 2026 and beyond reflect the company's
judgment based on the information available at the time of this release. Please see the "Forward-looking Statements" section in this release and
our Form 10-K for factors that may impact the company's ability to meet expectations.

2Medium term growth represents our expected compound annual growth rate over the next three to five years.
3Non-GAAP measures. See Exhibit B for definitions. In reliance upon Item 10(e)(1)(i)(B) of Regulation S-K, reconciliations of forward–looking
GAAP and non–GAAP measures are not provided because of the unreasonable effort associated with providing such reconciliations due to the
variability in the occurrence and the amounts of certain components of GAAP and non-GAAP measures. For the same reasons, we are unable
to address the significance of the unavailable information, which could be material to future results.

4Outlook is based on current tax law. Variability exists based on how and when individual states conform to recent federal tax law changes.

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About Huntington Ingalls Industries

HII is America’s largest shipbuilder, delivering the world’s most powerful ships and all-domain mission technologies,
including unmanned systems, to U.S. and allied defense customers. HII is the largest producer of unmanned
underwater vehicles for the U.S. Navy and the world.

With a more than 140-year history of advancing U.S. national security, HII builds and integrates defense
capabilities extending from the core fleet to C6ISR, AI/ML, EW and synthetic training. Headquartered in Virginia,
HII’s workforce is 44,000 strong. For more information, visit [Link].

Conference Call Information

HII will webcast its earnings conference call at 9 a.m. Eastern time today. A live audio broadcast of the conference
call and supplemental presentation will be available on the investor relations page of the company’s website:
[Link]. A telephone replay of the conference call will be available from noon today through Thursday, February
19th by calling (866) 813-9403 or (929) 458-6194 and using access code 952060.

Cautionary Statement Regarding Forward-Looking Statements

Statements in this earnings release and in our other filings with the SEC, as well as other statements we may
make from time to time, other than statements of historical fact, constitute "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking
statements by words such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes,"
"estimates," "guidance," "outlook," "predicts," "potential," "continue," and similar words or phrases or the negative
of these words or phrases. These statements relate to future events or our future financial performance and involve
known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity,
performance, or achievements to be materially different from any future results, levels of activity, performance, or
achievements expressed or implied by these forward-looking statements. Although we believe the expectations
reflected in the forward-looking statements are reasonable when made, we cannot guarantee future results, levels
of activity, performance, or achievements. There are a number of important factors that could cause our actual
results to differ materially from the results anticipated by our forward-looking statements, which include, but are not
limited to:

• our dependence on the U.S. Government for substantially all of our business;
• significant delays or reductions in appropriations for our programs and/or changes in customer priorities
and requirements (including government budgetary constraints, government shutdowns, shifts in defense
spending, and changes in customer short-range and long-range plans);
• our ability to estimate our future contract costs, including cost increases due to inflation, labor challenges,
changes in trade policy, or other factors and our efforts to recover or offset such costs and/or changes in
estimated contract costs, and perform our contracts effectively;
• changes in business practices, procurement processes and government regulations and our ability to
comply with such requirements;
• adverse economic conditions in the United States and globally;
• our level of indebtedness and ability to service our indebtedness;
• our ability to deliver our products and services at an affordable life cycle cost and compete within our
markets;
• our ability to attract, retain, and train a qualified workforce;
• subcontractor and supplier performance and the availability and pricing of raw materials and components;
• our ability to execute our strategic plan, including with respect to share repurchases, dividends, capital
expenditures, and strategic acquisitions;
• investigations, claims, disputes, enforcement actions, litigation (including criminal, civil, and
administrative), and/or other legal proceedings, and improper conduct of employees, agents,
subcontractors, suppliers, business partners, or joint ventures in which we participate, including the impact
on our reputation or ability to do business;
• changes in key estimates and assumptions regarding our pension and retiree health care costs;
• security threats, including cyber security threats, and related disruptions;
• natural and environmental disasters and political instability;

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 • health epidemics, pandemics and similar outbreaks; and
• other risk factors discussed herein and in our other filings with the SEC.

There may be other risks and uncertainties that we are unable to predict at this time or that we currently do not
expect to have a material adverse effect on our business, and we undertake no obligation to update or revise any
forward-looking statements. You should not place undue reliance on any forward-looking statements that we may
make.

This release also contains non-GAAP financial measures and includes a GAAP reconciliation of these financial
measures. Non-GAAP financial measures should not be construed as being more important than comparable
GAAP measures.

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4101 Washington Ave. • Newport News, VA 23607
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Exhibit A: Financial Statements

HUNTINGTON INGALLS INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
Three Months Ended
December 31 Year Ended December 31
(in millions, except per share amounts) 2025 2024 2025 2024
Sales and service revenues
Product sales $ 2,391 $ 1,990 $ 8,133 $ 7,464
Service revenues 1,085 1,014 4,351 4,071
Sales and service revenues 3,476 3,004 12,484 11,535
Cost of sales and service revenues
Cost of product sales 2,119 1,780 7,081 6,500
Cost of service revenues 955 903 3,818 3,585
Income from operating investments, net 13 14 46 49
Other income and gains, net 2 9 3 9
General and administrative expenses 245 234 977 973
Operating income 172 110 657 535
Other income (expense)
Interest expense (26) (27) (105) (95)
Non-operating retirement benefit 47 45 190 179
Other, net 5 3 35 24
Earnings before income taxes 198 131 777 643
Federal and foreign income tax expense 39 8 172 93
Net earnings $ 159 $ 123 $ 605 $ 550

Basic earnings per share $ 4.05 $ 3.15 $ 15.39 $ 13.96

Weighted-average common shares outstanding 39.3 39.1 39.3 39.4

Diluted earnings per share $ 4.04 $ 3.15 $ 15.39 $ 13.96

Weighted-average diluted shares outstanding 39.4 39.1 39.3 39.4

Dividends declared per share $ 1.38 $ 1.35 $ 5.43 $ 5.25

Net earnings from above $ 159 $ 123 $ 605 $ 550

Other comprehensive income
Change in unamortized benefit plan costs (36) 514 (33) 528
Tax benefit (expense) for items of other comprehensive income 9 (130) 8 (134)
Other comprehensive income (loss), net of tax (27) 384 (25) 394
Comprehensive income $ 132 $ 507 $ 580 $ 944

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HUNTINGTON INGALLS INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
December 31, December 31,
($ in millions) 2025 2024
Assets
Current Assets
Cash and cash equivalents $ 774 $ 831
Accounts receivable, net 339 212
Contract assets 1,758 1,683
Inventoried costs, net 219 208
Income taxes receivable 284 204
Prepaid expenses and other current assets 77 90
Total current assets 3,451 3,228
Property, Plant, and Equipment, net of accumulated depreciation of $2,754 million as of 2025 and
$2,583 million as of 2024 3,726 3,450
Other Assets
Operating lease assets 267 239
Goodwill 2,650 2,618
Other intangible assets, net of accumulated amortization of $1,222 million as of 2025 and $1,118
million as of 2024 694 782
Pension plan assets 1,544 1,422
Miscellaneous other assets 417 402
Total other assets 5,572 5,463
Total assets $ 12,749 $ 12,141
Liabilities and Stockholders' Equity
Current Liabilities
Trade accounts payable 556 598
Accrued employees’ compensation 443 392
Current portion of long-term debt — 503
Current portion of postretirement plan liabilities 119 124
Current portion of workers’ compensation liabilities 217 201
Contract liabilities 1,220 774
Other current liabilities 490 399
Total current liabilities 3,045 2,991
Long-term debt 2,700 2,700
Pension plan liabilities 155 142
Other postretirement plan liabilities 200 209
Workers’ compensation liabilities 442 443
Long-term operating lease liabilities 223 205
Deferred tax liabilities 572 378
Other long-term liabilities 339 407
Total liabilities 7,676 7,475
Commitments and Contingencies
Stockholders’ Equity
Common stock, $0.01 par value; 150,000,000 shares authorized; 53,826,236 issued and 39,241,527
outstanding as of December 31, 2025, and 53,714,128 issued and 39,129,419 outstanding as of
December 31, 2024 1 1
Additional paid-in capital 2,087 2,045
Retained earnings 5,487 5,097
Treasury stock (2,449) (2,449)
Accumulated other comprehensive loss (53) (28)
Total stockholders’ equity 5,073 4,666
Total liabilities and stockholders’ equity $ 12,749 $ 12,141

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HUNTINGTON INGALLS INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS

Year Ended December 31

($ in millions) 2025 2024
Operating Activities
Net earnings $ 605 $ 550
Adjustments to reconcile to net cash provided by operating activities
Depreciation 225 217
Amortization of purchased intangibles 104 109
Stock-based compensation 54 23
Deferred income taxes 203 (122)
Loss (gain) on investments in marketable securities (34) (22)
Other non-cash transactions, net 23 10
Change in
Accounts receivable (127) 256
Contract assets (75) (146)
Inventoried costs (11) (22)
Prepaid expenses and other assets (66) (33)
Accounts payable and accruals 449 (315)
Retiree benefits (154) (112)
Net cash provided by operating activities 1,196 393
Investing Activities
Capital expenditures
Capital expenditure additions (402) (367)
Grant proceeds for capital expenditures 6 14
Acquisitions of businesses (132) —
Proceeds from sale of investments 5 —
Other investing activities, net 2 5
Net cash used in investing activities (521) (348)
Financing Activities
Proceeds from issuance of long-term debt — 1,000
Repayment of long-term debt (500) (229)
Proceeds from line of credit borrowings — 42
Repayment of line of credit borrowings — (42)
Debt issuance costs — (17)
Dividends paid (213) (206)
Repurchases of common stock — (162)
Employee taxes on certain share-based payment arrangements (14) (25)
Other financing activities, net (5) (5)
Net cash provided by (used in) financing activities (732) 356
Change in cash and cash equivalents (57) 401
Cash and cash equivalents, beginning of period 831 430
Cash and cash equivalents, end of period $ 774 $ 831
Supplemental Cash Flow Disclosure
Cash paid for income taxes (net of refunds) $ 96 $ 255
Cash paid for interest $ 108 $ 101
Non-Cash Investing and Financing Activities
Capital expenditures accrued in accounts payable $ 23 $ 23

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Exhibit B: Non-GAAP Measures Definitions & Reconciliations

This earnings release contains non-GAAP (accounting principles generally accepted in the United States of
America) financial measures as defined by SEC Regulation G and indicated by a footnote in the text of this
release. Definitions for the non-GAAP measures, and related reconciliations, are provided below. Because not all
companies use identical definitions or calculations, our presentation of these measures may not be comparable to
similarly titled measures of other companies.

Segment Operating Income and Segment Operating Margin. We internally manage our operations by reference
to segment operating income and segment operating margin and use these measures to evaluate our core
operating performance. We believe that segment operating income and segment operating margin reflect
additional ways of viewing aspects of our operations that, when viewed with our GAAP results, provide a more
complete understanding of factors and trends affecting our business. These measures should be considered in
addition to, and not as alternatives for, operating income and operating margin or any other performance measure
presented in accordance with GAAP.

Segment operating income is defined as operating income for the relevant segment(s) before the Operating FAS/
CAS Adjustment and non-current state income taxes.

Segment operating margin is defined as segment operating income as a percentage of sales and service
revenues.

Shipbuilding operating margin, Mission Technologies EBITDA and Mission Technologies EBITDA margin.
We use shipbuilding operating margin, Mission Technologies EBITDA and Mission Technologies EBITDA margin to
evaluate our core operating performance. We believe these measures reflect additional ways of viewing aspects of
our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and
trends affecting our business. These measures should be considered in addition to, and not as alternatives for,
operating income and operating margin or any other performance measure presented in accordance with GAAP.

Shipbuilding operating margin is defined as the combined segment operating income of our Newport News
Shipbuilding segment and Ingalls Shipbuilding segment as a percentage of shipbuilding revenue. Shipbuilding
revenue is the sum of revenues of our Newport News Shipbuilding segment and Ingalls Shipbuilding segment.

Mission Technologies EBITDA is defined as Mission Technologies segment operating income before interest
expense, income taxes, depreciation, and amortization.

Mission Technologies EBITDA margin is defined as Mission Technologies EBITDA as a percentage of Mission
Technologies revenues.

Free cash flow. We use free cash flow as a key operating metric in assessing the performance of our business
and as a key performance measure in evaluating management performance and determining incentive
compensation. We believe free cash flow is an important measure that may be useful to investors and other users
of our financial statements because it provides insight into our current and period-to-period performance and our
ability to generate cash from continuing operations. Free cash flow has limitations as an analytical tool and should
not be considered in isolation from, or as a substitute for, net income as a measure of our performance or net cash
provided by operating activities as a measure of our liquidity.

Free cash flow is defined as net cash provided by (used in) operating activities less capital expenditures net of
related grant proceeds.

In reliance upon Item 10(e)(1)(i)(B) of Regulation S-K, reconciliations of forward-looking GAAP and non-GAAP
measures are not provided because of the unreasonable effort associated with providing such reconciliations due
to the variability in the occurrence and the amounts of certain components of GAAP and non-GAAP measures. For
the same reasons, we are unable to address the significance of the unavailable information, which could be
material to future results

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Reconciliations of Segment Operating Income and Segment Operating Margin

Three Months Ended Year Ended

December 31 December 31
($ in millions) 2025 2024 2025 2024
Ingalls revenues $ 889 $ 736 $ 3,078 $ 2,767
Newport News revenues 1,891 1,588 6,507 5,969
Mission Technologies revenues 731 713 3,044 2,937
Intersegment eliminations (35) (33) (145) (138)
Sales and Service Revenues 3,476 3,004 12,484 11,535

Operating Income 172 110 657 535

Operating FAS/CAS Adjustment 10 14 35 62
Non-current state income taxes 13 (21) 25 (24)
Segment Operating Income 195 103 717 573
As a percentage of sales and service revenues 5.6 % 3.4 % 5.7 % 5.0 %
Ingalls segment operating income 68 46 233 211
As a percentage of Ingalls revenues 7.6 % 6.3 % 7.6 % 7.6 %
Newport News segment operating income 84 38 331 246
As a percentage of Newport News revenues 4.4 % 2.4 % 5.1 % 4.1 %
Mission Technologies segment operating income 43 19 153 116
As a percentage of Mission Technologies revenues 5.9 % 2.7 % 5.0 % 3.9 %

Reconciliation of Free Cash Flow

Three Months Ended Year Ended

December 31 December 31
($ in millions) 2025 2024 2025 2024
Net cash provided by operating activities $ 650 $ 391 $ 1,196 $ 393
Less capital expenditures:
Capital expenditure additions (134) (114) (402) (367)
Grant proceeds for capital expenditures — — 6 14
Free cash flow $ 516 $ 277 $ 800 $ 40

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Reconciliation of Mission Technologies EBITDA and EBITDA Margin

Three Months Ended Year Ended

December 31 December 31
($ in millions) 2025 2024 2025 2024
Mission Technologies sales and service revenues $ 731 $ 713 $ 3,044 $ 2,937

Mission Technologies segment operating income $ 43 $ 19 $ 153 $ 116

Mission Technologies depreciation expense 5 3 14 11
Mission Technologies amortization expense 22 24 89 99
Mission Technologies state tax expense (1) 1 5 7
Mission Technologies EBITDA $ 69 $ 47 $ 261 $ 233
Mission Technologies EBITDA margin 9.4 % 6.6 % 8.6 % 7.9 %

HII
4101 Washington Ave. • Newport News, VA 23607
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