Update shared on04 Aug 2025
Fair value Increased 11%Analysts have raised their price target for Huntington Ingalls Industries to $271.70, reflecting greater confidence in improved defense budgets, strong Navy ship demand, and enhanced operational execution.
Analyst Commentary
- Bullish analysts are citing a more positive budget backdrop for defense, especially for Navy shipbuilding, which is driving higher price targets.
- Improving execution and labor productivity at HII, along with better employee retention, are reducing operational risks and contributing to bullish outlooks.
- Robust U.S. Navy ship demand and emerging, more favorable contract terms are expected to lower HII’s financial risk profile and enhance future margins.
- Upcoming Navy contracts are seen as promising, with analysts noting the potential for a meaningful inflection in defense sector performance following Q2 earnings.
- Some remain cautious, reflecting that the broader U.S. defense sector may deliver mixed performance this earnings season despite positive trends at HII.
What's in the News
- HII reaffirmed 2025 earnings guidance, expecting shipbuilding revenue of $8.9-$9.1 billion and mission technologies revenue of $2.9-$3.1 billion.
- Mission Technologies division awarded a $74 million U.S. Air Force task order for modeling, simulation, and decision aid software to support Space Force operations.
- Joint HII team achieved a milestone enabling autonomous undersea vehicles to be launched and recovered from submarine torpedo tubes, enhancing U.S. Navy undersea capabilities.
- Virginia-class submarine Arkansas launched at Newport News Shipbuilding, marking the 13th such delivery by the division with advanced submarine capabilities.
- HII and C3.ai expanded their strategic partnership to integrate AI across shipbuilding operations, aiming to accelerate production and optimize scheduling.
Valuation Changes
Summary of Valuation Changes for Huntington Ingalls Industries
- The Consensus Analyst Price Target has risen from $256.18 to $271.70.
- The Future P/E for Huntington Ingalls Industries has risen from 16.81x to 17.92x.
- The Consensus Revenue Growth forecasts for Huntington Ingalls Industries has risen from 5.2% per annum to 5.5% per annum.
Disclaimer
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