Equity Profile

HII

Huntington Ingalls Industries, Inc.

IndustrialsAerospace & Defense$11.5B

Jul30Thu

Pre-Earnings Brief

UpcomingQ2-2026Pre-Market9:00 AM EDT

Company Snapshot

Huntington Ingalls Industries, Inc. (HII) is a leading provider of military shipbuilding and defense services, playing a crucial role in national security....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a critical measure of profitability and will indicate how well the company has managed costs and revenue.

$3.70

Revenue Growth

Revenue growth will provide insight into the company's ability to secure contracts and expand its market presence.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

HII Q2-2026 Earnings Preview

Context

Company Snapshot

Huntington Ingalls Industries, Inc. (HII) is a leading provider of military shipbuilding and defense services, playing a crucial role in national security. As a key player in the aerospace and defense sector, the company benefits from ongoing government contracts and increased defense spending, which are significant themes in today's industrial landscape.

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

75%

Avg EPS Surprise

+7.54%

Avg Stock Reaction

-7.05%

Last Quarter Recap

In Q1 2026, HII reported an EPS of $3.79, beating estimates by 2.52%. Despite the positive earnings surprise, the stock fell 10.25% the following day, reflecting market concerns.

Management Promises & Guidance

Management committed to maintaining strong operational efficiency.
They highlighted ongoing investments in technology and workforce development.
The company reiterated its focus on securing new defense contracts.

Expectations

Wall Street Expectations

Overall, analysts expect HII to report solid earnings, but there are concerns about potential revenue misses and market reactions to guidance.

Bull Case

If HII beats EPS estimates and shows strong revenue growth, it could signal robust demand for defense contracts, leading to a positive stock reaction.

Bear Case

Conversely, if the company misses on EPS or provides weak guidance, it could exacerbate existing market skepticism, leading to a significant stock decline.

Key Metrics to Watch

Earnings Per Share (EPS)

$3.70

EPS is a critical measure of profitability and will indicate how well the company has managed costs and revenue.

Revenue Growth

N/A

Revenue growth will provide insight into the company's ability to secure contracts and expand its market presence.

Defense Contract Backlog

N/A

A strong backlog indicates future revenue potential and operational stability, which is vital for investor confidence.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be for Q2-2026, and how does it compare to the $3.70 consensus?

The EPS figure will be crucial in determining market sentiment and could significantly influence stock performance.

What updates can management provide on the defense contract backlog?

Insights into the backlog will help investors gauge future revenue potential and the company's competitive position in the defense sector.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may underestimate HII's ability to capitalize on increased defense spending, particularly given recent geopolitical tensions that could drive demand for military contracts.

Supporting Evidence

HII has a strong track record of beating EPS estimates, suggesting operational resilience.

The options market is pricing a 9.89% move, which may be conservative given the company's history of larger swings.

Recent defense budget increases could lead to higher contract awards than anticipated.

Key Risk

If the defense backlog shows significant growth, it could invalidate bearish sentiment and drive the stock higher.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance is pivotal as it reflects the company's ability to navigate a competitive defense landscape amid fluctuating government budgets.

Bull Confirmed If

An EPS of $3.80 or higher, along with positive commentary on the defense backlog, would confirm the bull case.

Bear Confirmed If

An EPS below $3.70, coupled with weak guidance on revenue growth, would support the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±9.89%

Historical Avg

±10.7%

In line with history

The options market is pricing in a nearly 10% movement in the stock, indicating uncertainty around the upcoming earnings report.

Options are pricing ±10.7% while HII has averaged ±10.7% over the last 8 prints — setup is roughly in line with history.

Detail

ATM IV

0.4%

30d HV

41.5%

Calls (5K)P/C Ratio: 1.59Puts (6K)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options rich in Industrials

n=30

Fade rate: 1 of 3 (33%)

This setup has occurred 30 times across Industrials in the last 2 years. 2 of 3 (67%) held or extended their move within 5 days — this setup typically holds direction. The average absolute 1-day move is 5.8%, with a raw directional average of +2.7% (modestly positive historical bias).

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If HII beats expectations, history suggests a potential stock increase of around 6% on the following day, confirming positive market sentiment.

In-Line / Cautious

If results are in line with expectations but management provides cautious guidance, the stock may experience a muted reaction, reflecting ongoing investor uncertainty.

Miss

A miss on EPS could lead to a decline of around 22% based on historical patterns, as market concerns about future performance could intensify.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on new defense contracts or partnerships.
2Management's commentary on cost management and operational efficiency.
3Insights into the impact of government budget changes on future revenue.
4Details on workforce development initiatives and technological advancements.
5Any changes in guidance for the remainder of the fiscal year.

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Company Snapshot

Huntington Ingalls Industries, Inc. (HII) is a leading provider of military shipbuilding and defense services, playing a crucial role in national security....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a critical measure of profitability and will indicate how well the company has managed costs and revenue.

$3.70

Revenue Growth

Revenue growth will provide insight into the company's ability to secure contracts and expand its market presence.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

HII Q2-2026 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

75%

Avg EPS Surprise

+7.54%

Avg Stock Reaction

-7.05%

Last Quarter Recap

In Q1 2026, HII reported an EPS of $3.79, beating estimates by 2.52%. Despite the positive earnings surprise, the stock fell 10.25% the following day, reflecting market concerns.

Management Promises & Guidance

Management committed to maintaining strong operational efficiency.
They highlighted ongoing investments in technology and workforce development.
The company reiterated its focus on securing new defense contracts.

Expectations

Wall Street Expectations

Overall, analysts expect HII to report solid earnings, but there are concerns about potential revenue misses and market reactions to guidance.

Bull Case

If HII beats EPS estimates and shows strong revenue growth, it could signal robust demand for defense contracts, leading to a positive stock reaction.

Bear Case

Conversely, if the company misses on EPS or provides weak guidance, it could exacerbate existing market skepticism, leading to a significant stock decline.

Key Metrics to Watch

Earnings Per Share (EPS)

$3.70

EPS is a critical measure of profitability and will indicate how well the company has managed costs and revenue.

Revenue Growth

N/A

Revenue growth will provide insight into the company's ability to secure contracts and expand its market presence.

Defense Contract Backlog

N/A

A strong backlog indicates future revenue potential and operational stability, which is vital for investor confidence.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be for Q2-2026, and how does it compare to the $3.70 consensus?

The EPS figure will be crucial in determining market sentiment and could significantly influence stock performance.

What updates can management provide on the defense contract backlog?

Insights into the backlog will help investors gauge future revenue potential and the company's competitive position in the defense sector.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may underestimate HII's ability to capitalize on increased defense spending, particularly given recent geopolitical tensions that could drive demand for military contracts.

Supporting Evidence

HII has a strong track record of beating EPS estimates, suggesting operational resilience.

The options market is pricing a 9.89% move, which may be conservative given the company's history of larger swings.

Recent defense budget increases could lead to higher contract awards than anticipated.

Key Risk

If the defense backlog shows significant growth, it could invalidate bearish sentiment and drive the stock higher.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance is pivotal as it reflects the company's ability to navigate a competitive defense landscape amid fluctuating government budgets.

Bull Confirmed If

An EPS of $3.80 or higher, along with positive commentary on the defense backlog, would confirm the bull case.

Bear Confirmed If

An EPS below $3.70, coupled with weak guidance on revenue growth, would support the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±9.89%

Historical Avg

±10.7%

In line with history

The options market is pricing in a nearly 10% movement in the stock, indicating uncertainty around the upcoming earnings report.

Options are pricing ±10.7% while HII has averaged ±10.7% over the last 8 prints — setup is roughly in line with history.

Detail

ATM IV

0.4%

30d HV

41.5%

Calls (5K)P/C Ratio: 1.59Puts (6K)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options rich in Industrials

n=30

Fade rate: 1 of 3 (33%)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If HII beats expectations, history suggests a potential stock increase of around 6% on the following day, confirming positive market sentiment.

In-Line / Cautious

If results are in line with expectations but management provides cautious guidance, the stock may experience a muted reaction, reflecting ongoing investor uncertainty.

Miss

A miss on EPS could lead to a decline of around 22% based on historical patterns, as market concerns about future performance could intensify.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on new defense contracts or partnerships.
2Management's commentary on cost management and operational efficiency.
3Insights into the impact of government budget changes on future revenue.
4Details on workforce development initiatives and technological advancements.
5Any changes in guidance for the remainder of the fiscal year.