HUNTINGTON INGALLS INDUSTRIES, INC.HII
HUNTINGTON INGALLS INDUSTRIES, INC. Segments Disclosure
SEGMENT INFORMATION
The Company is organized into three operating segments, which are also its reportable segments: Ingalls, Newport News, and Mission Technologies, consistent with HII’s principal lines of business. Ingalls includes the Company’s non-nuclear ship design, construction, repair, and maintenance businesses. Newport News includes all of the Company’s nuclear ship design, construction, overhaul, refueling, and repair and maintenance businesses. The Mission Technologies segment provides a wide range of services and products, including command, control, computers, communications, cyber, intelligence, surveillance, and reconnaissance systems and operations; the application of artificial intelligence and machine learning to battlefield decisions; defense and offensive cyberspace
strategies and electronic warfare; unmanned autonomous systems; live, virtual, and constructive training solutions; platform modernization; and critical nuclear operations.
The Company’s operations are managed by senior executives reporting to the Company’s President and Chief Executive Officer, the chief operating decision maker, who regularly reviews the reportable segments’ operating results to assess performance and allocate resources.
The Company internally manages operations by reference to segment operating income, which is defined as operating income before the Operating FAS/CAS Adjustment and non-current state income taxes, neither of which affects contract performance. In evaluating operating performance, the chief operating decision maker looks primarily at changes in sales and service revenues, as well as segment operating income. This approach is consistent with the long-term life cycle of the Company’s contracts, as management assesses the bidding of each contract by focusing on net sales and operating profit and monitors performance in a similar manner through contract completion.
The Operating FAS/CAS Adjustment represents the difference between the service cost component of the Company's pension and other postretirement benefit plan expense determined in accordance with GAAP ("FAS") and the Company's pension and other postretirement expense under CAS.
U.S. Government Sales - Revenues from the U.S. Government include revenues from contracts for which HII is the prime contractor, as well as contracts for which the Company is a subcontractor and the ultimate customer is the U.S. Government. The Company derived substantially all of its revenues from the U.S. Government for each of the years ended December 31, 2025, 2024, and 2023.
Assets - Substantially all of the Company's assets are located or maintained in the United States.
Results of Operations by Segment
The following tables present the Company's operating results by segment:
| Year Ended December 31, 2025 | ||||||||||||||||||||||||||||||||
| ($ in millions) | Ingalls | Newport News | Mission Technologies | Intersegment Eliminations | Total | |||||||||||||||||||||||||||
| Sales and Service Revenues | ||||||||||||||||||||||||||||||||
| Product sales | $ | 2,597 | $ | 5,397 | $ | 139 | $ | — | $ | 8,133 | ||||||||||||||||||||||
| Service revenues | 469 | 1,109 | 2,773 | — | 4,351 | |||||||||||||||||||||||||||
| Intersegment | 12 | 1 | 132 | (145) | — | |||||||||||||||||||||||||||
| Total sales and service revenues | 3,078 | 6,507 | 3,044 | (145) | 12,484 | |||||||||||||||||||||||||||
| Segment Operating Income | ||||||||||||||||||||||||||||||||
| Income from operating investments, net | — | — | 46 | — | 46 | |||||||||||||||||||||||||||
| Other income and gains, net | — | 1 | 2 | — | 3 | |||||||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||||
| Cost of sales and service revenues | ||||||||||||||||||||||||||||||||
| Product | 2,258 | 4,685 | 109 | — | 7,052 | |||||||||||||||||||||||||||
| Service | 409 | 931 | 2,472 | — | 3,812 | |||||||||||||||||||||||||||
| Intersegment | 12 | 1 | 132 | (145) | — | |||||||||||||||||||||||||||
| Other segment items | 166 | 560 | 226 | — | 952 | |||||||||||||||||||||||||||
| Total segment operating income | $ | 233 | $ | 331 | $ | 153 | $ | — | $ | 717 | ||||||||||||||||||||||
| Non-segment factors affecting operating income | ||||||||||||||||||||||||||||||||
| Operating FAS/CAS Adjustment | (35) | |||||||||||||||||||||||||||||||
| Non-current state income taxes | (25) | |||||||||||||||||||||||||||||||
| Total operating income | $ | 657 | ||||||||||||||||||||||||||||||
| Year Ended December 31, 2024 | ||||||||||||||||||||||||||||||||
| ($ in millions) | Ingalls | Newport News | Mission Technologies | Intersegment Eliminations | Total | |||||||||||||||||||||||||||
| Sales and Service Revenues | ||||||||||||||||||||||||||||||||
| Product sales | $ | 2,424 | $ | 4,921 | $ | 119 | $ | — | $ | 7,464 | ||||||||||||||||||||||
| Service revenues | 335 | 1,045 | 2,691 | — | 4,071 | |||||||||||||||||||||||||||
| Intersegment | 8 | 3 | 127 | (138) | — | |||||||||||||||||||||||||||
| Total sales and service revenues | 2,767 | 5,969 | 2,937 | (138) | 11,535 | |||||||||||||||||||||||||||
| Segment Operating Income | ||||||||||||||||||||||||||||||||
| Income from operating investments, net | 1 | — | 48 | — | 49 | |||||||||||||||||||||||||||
| Other income and gains, net | — | 10 | (1) | — | 9 | |||||||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||||
| Cost of sales and service revenues | ||||||||||||||||||||||||||||||||
| Product | 2,070 | 4,276 | 102 | — | 6,448 | |||||||||||||||||||||||||||
| Service | 294 | 865 | 2,416 | — | 3,575 | |||||||||||||||||||||||||||
| Intersegment | 8 | 3 | 127 | (138) | — | |||||||||||||||||||||||||||
| Other segment items | 185 | 589 | 223 | — | 997 | |||||||||||||||||||||||||||
| Total segment operating income | $ | 211 | $ | 246 | $ | 116 | $ | — | $ | 573 | ||||||||||||||||||||||
| Non-segment factors affecting operating income | ||||||||||||||||||||||||||||||||
| Operating FAS/CAS Adjustment | (62) | |||||||||||||||||||||||||||||||
| Non-current state income taxes | 24 | |||||||||||||||||||||||||||||||
| Total operating income | $ | 535 | ||||||||||||||||||||||||||||||
| Year Ended December 31, 2023 | ||||||||||||||||||||||||||||||||
| ($ in millions) | Ingalls | Newport News | Mission Technologies | Intersegment Eliminations | Total | |||||||||||||||||||||||||||
| Sales and Service Revenues | ||||||||||||||||||||||||||||||||
| Product sales | $ | 2,495 | $ | 5,053 | $ | 116 | $ | — | $ | 7,664 | ||||||||||||||||||||||
| Service revenues | 248 | 1,077 | 2,465 | — | 3,790 | |||||||||||||||||||||||||||
| Intersegment | 9 | 3 | 118 | (130) | — | |||||||||||||||||||||||||||
| Total sales and service revenues | 2,752 | 6,133 | 2,699 | (130) | 11,454 | |||||||||||||||||||||||||||
| Segment Operating Income | ||||||||||||||||||||||||||||||||
| Income from operating investments, net | — | — | 37 | — | 37 | |||||||||||||||||||||||||||
| Other income and gains, net | 71 | — | 49 | — | 120 | |||||||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||||
| Cost of sales and service revenues | ||||||||||||||||||||||||||||||||
| Product | 2,031 | 4,254 | 121 | — | 6,406 | |||||||||||||||||||||||||||
| Service | 207 | 900 | 2,223 | — | 3,330 | |||||||||||||||||||||||||||
| Intersegment | 9 | 3 | 118 | (130) | — | |||||||||||||||||||||||||||
| Other segment items | 214 | 597 | 222 | — | 1,033 | |||||||||||||||||||||||||||
| Total segment operating income | $ | 362 | $ | 379 | $ | 101 | $ | — | $ | 842 | ||||||||||||||||||||||
| Non-segment factors affecting operating income | ||||||||||||||||||||||||||||||||
| Operating FAS/CAS Adjustment | (72) | |||||||||||||||||||||||||||||||
| Non-current state income taxes | 11 | |||||||||||||||||||||||||||||||
| Total operating income | $ | 781 | ||||||||||||||||||||||||||||||
Sales transactions between segments are generally recorded at cost.
Other segment items consist of general and administrative expenses.
Other Financial Information
The following tables present the Company's capital expenditures, as presented to the chief operating decision maker, and depreciation and amortization by segment:
| Year Ended December 31 | ||||||||||||||||||||
| ($ in millions) | 2025 | 2024 | 2023 | |||||||||||||||||
Capital Expenditures(1) | ||||||||||||||||||||
| Ingalls | $ | 74 | $ | 60 | $ | 65 | ||||||||||||||
| Newport News | 303 | 268 | 196 | |||||||||||||||||
| Mission Technologies | 13 | 18 | 11 | |||||||||||||||||
| Total segment capital expenditures | 390 | 346 | 272 | |||||||||||||||||
| Corporate | 6 | 7 | 6 | |||||||||||||||||
| Total capital expenditures | $ | 396 | $ | 353 | $ | 278 | ||||||||||||||
(1) Net of grant proceeds for capital expenditures
| Year Ended December 31 | ||||||||||||||||||||
| ($ in millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Depreciation and Amortization | ||||||||||||||||||||
| Ingalls | $ | 81 | $ | 78 | $ | 76 | ||||||||||||||
| Newport News | 141 | 136 | 150 | |||||||||||||||||
| Mission Technologies | 103 | 110 | 120 | |||||||||||||||||
| Total segment depreciation and amortization | 325 | 324 | 346 | |||||||||||||||||
| Corporate | 4 | 2 | 1 | |||||||||||||||||
| Total depreciation and amortization | $ | 329 | $ | 326 | $ | 347 | ||||||||||||||
Asset information by segment is not disclosed because it is not a key measure of performance used by the chief operating decision maker.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 5, 2026 | Showing above |
| 2024 | Feb 6, 2025 | |
| 2023 | Feb 1, 2024 | |
| 2022 | Feb 9, 2023 | |
| 2021 | Feb 10, 2022 | |
| 2020 | Feb 11, 2021 | |
| 2019 | Feb 13, 2020 | |
| 2018 | Feb 14, 2019 | |
| 2017 | Feb 15, 2018 | |
| 2016 | Feb 16, 2017 | |
| 2015 | Feb 18, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.