8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________________________ 

FORM 8-K

 _____________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

May 2, 2019

  _____________________________________

HUNTINGTON INGALLS INDUSTRIES, INC.

(Exact name of registrant as specified in its charter)

 _____________________________________

DELAWARE	1-34910	90-0607005
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)
4101 Washington Avenue, Newport News, Virginia		23607
(Address of principal executive offices)		(Zip Code)

(757) 380-2000

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	HII	New York Stock Exchange (NYSE)

Item 2.02. Results of Operations and Financial Condition.

On May 2, 2019, Huntington Ingalls Industries, Inc. issued a press release announcing its financial results for the quarter ended March 31, 2019. A copy of the press release is furnished as Exhibit 99.1 hereto. Also furnished as Exhibit 99.2 is the corporation’s earnings presentation for the first quarter 2019 earnings release conference call.

Item 9.01.	Financial Statements and Exhibits.
(d)	Exhibits.

Exhibit No.	Description
99.1	Press Release dated May 2, 2019.
99.2	Earnings Presentation dated May 2, 2019.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	HUNTINGTON INGALLS INDUSTRIES, INC.
Date: May 2, 2019	By:	/s/ Christopher D. Kastner
		Christopher D. Kastner
		Executive Vice President, Business Management and Chief Financial Officer

EX-99.1

 Exhibit 99.1 News Release

Contacts:

Jerri Fuller Dickseski (Media)

jerri.dickseski@hii-co.com

757-380-2341

Dwayne Blake (Investors)

dwayne.blake@hii-co.com

757-380-2104

Huntington Ingalls Industries Reports First Quarter 2019 Results

• Revenues were $2.1 billion in the quarter

• Operating margin was 7.7%

• Diluted earnings per share was $2.85

• Record backlog of $40.6 billion

NEWPORT NEWS, Va. (May 2, 2019) - Huntington Ingalls Industries (NYSE:HII) reported first quarter 2019 revenues of $2.1 billion, up 11.0 percent from the first quarter of 2018. The increase was driven primarily by higher volume at HII’s Newport News Shipbuilding division and growth at HII’s Technical Solutions division from recent acquisitions.

Operating income in the quarter was $161 million and operating margin was 7.7 percent, compared to $191

million and 10.2 percent, respectively, in the first quarter of 2018. The decreases in operating income and operating margin were mainly the result of an unfavorable change in the operating FAS/CAS adjustment and lower risk retirement at HII’s Ingalls Shipbuilding division compared to the prior year.

Diluted earnings per share in the quarter was $2.85, compared to $3.48 in the same period of 2018. The decrease was predominantly due to lower operating income and an unfavorable change in the non-operating portion of retirement benefit expense.

First quarter cash from operations was $11 million and free cash flow¹ was negative $63 million, compared to $120 million and positive $47 million, respectively, in the first quarter of 2018.

New contract awards in the quarter were approximately $19.6 billion, primarily driven by an award for the detail

design and construction of two Gerald R. Ford-class aircraft carriers, Enterprise (CVN 80) and the unnamed CVN 81, bringing total backlog to approximately $41 billion as of March 31.

“The first quarter was highlighted by the historic $15.2 billion contract for the detail design and construction of two aircraft carriers,” said Mike Petters, HII’s president and CEO. “With the Navy’s commitment to the two-carrier buy and more than $40 billion in contracted backlog overall, HII is well-positioned to continue creating long-term, sustainable value for our shareholders, customers and employees.”

¹ Non-GAAP measure. See Exhibit B for definition and reconciliation.

Huntington Ingalls Industries

4101 Washington Ave. • Newport News, VA 23607

www.huntingtoningalls.com

Page 1 of 10

Results of Operations

	Three Months Ended
	March 31
(in millions, except per share amounts)	2019			2018			$ Change			% Change
Sales and service revenues	$	2,080		$	1,874		$	206		11.0	%
Operating income	161			191			(30		)	(15.7	)%
Operating margin %	7.7		%	10.2		%				(245) bps
Segment operating income1	129			117			12			10.3	%
Segment operating margin %1	6.2		%	6.2		%				(4) bps
Net earnings	118			156			(38		)	(24.4	)%
Diluted earnings per share	$	2.85		$	3.48		$	(0.63	)	(18.1	)%
Weighted-average diluted shares outstanding	41.4			44.8
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
	March 31
($ in millions)	2019			2018			$ Change			% Change
Revenues	$	584		$	585		$	(1	)	(0.2	)%
Segment operating income1	46			64			(18		)	(28.1	)%
Segment operating margin %1	7.9		%	10.9		%				(306) bps
1 Non-GAAP measures. See Exhibit B for definitions and reconciliations.

Ingalls Shipbuilding revenues for the first quarter were $584 million, a decrease of $1 million from the same period in 2018, primarily driven by lower revenues in surface combatants, largely offset by higher revenues in amphibious assault ships and the Legend-class National Security Cutter (NSC) program. Surface combatant revenues decreased due to lower volumes on Delbert D. Black (DDG 119), Paul Ignatius (DDG 117), and Frank E. Petersen Jr.(DDG 121), partially offset by higher volumes on USS Fitzgerald (DDG 62) repair and restoration and Ted Stevens (DDG 128). Amphibious assault ship revenues increased as a result of higher volumes on Bougainville (LHA 8) and Richard M. McCool Jr. (LPD 29), partially offset by lower volumes on Tripoli (LHA 7) and the delivered USS Portland (LPD 27), as well as lower risk retirement on the LPD program. Revenues on the NSC program increased due to higher volumes on NSC 10 (unnamed) and NSC 11 (unnamed), partially offset by lower volume on the delivered Kimball (NSC 7).

Ingalls Shipbuilding segment operating income for the first quarter was $46 million, a decrease of $18 million from the same period last year. Segment operating margin in the quarter was 7.9 percent, compared to 10.9 percent in the same period last year. These decreases were primarily due to lower risk retirement on the LPD program, partially offset by one-time employee bonus payments in 2018 related to the U.S. Tax Cuts and Jobs Act of 2017 (the “Tax Act”).

Huntington Ingalls Industries

4101 Washington Ave. • Newport News, VA 23607

www.huntingtoningalls.com

Page 2 of 10

Key Ingalls Shipbuilding milestones for the quarter:

• Delivered guided missile destroyer Paul Ignatius (DDG 117)

• Authenticated the keel of amphibious assault ship Bougainville (LHA 8)

• Awarded $1.5 billion contract for the detail design and construction of amphibious transport dock LPD 30,

the first Flight II LPD

• Completed acceptance trials of National Security Cutter Midgett (NSC 8)

Newport News Shipbuilding

	Three Months Ended
	March 31
($ in millions)	2019			2018			$ Change		% Change
Revenues	$	1,265		$	1,082		$	183	16.9	%
Segment operating income1	78			51			27		52.9	%
Segment operating margin %1	6.2		%	4.7		%			145 bps
1 Non-GAAP measures. See Exhibit B for definitions and reconciliations.

Newport News Shipbuilding revenues for the first quarter were $1.3 billion, an increase of $183 million, or 16.9

percent, from the same period in 2018, primarily driven by higher revenues in aircraft carriers, naval nuclear support services, and submarines. Aircraft carrier revenues increased primarily as a result of higher volumes on the advance planning contract for Enterprise (CVN 80), the execution contract for the refueling and complex overhaul (RCOH) of USS George Washington (CVN 73), and the advance planning contract for the RCOH of USS John C. Stennis (CVN 74). Naval nuclear support service revenues increased primarily as a result of higher volumes in submarine support and facility maintenance services. Submarine revenues related to the Virginia-class submarine (VCS) program increased due to higher volumes on Block IV construction and Block V advanced procurement, partially offset by lower volumes on Block III boats.

Newport News Shipbuilding segment operating income for the first quarter was $78 million, an increase of $27

million from the same period last year. Segment operating margin was 6.2 percent for the quarter, compared to 4.7 percent in the same period last year. The increases are primarily due to the higher volume described above, and one-time employee bonus payments in 2018 related to the Tax Act, partially offset by lower performance on the VCS program.

Key Newport News Shipbuilding milestones for the quarter:

• Awarded $15.2 billion block buy contract for aircraft carrier Enterprise (CVN 80) and CVN 81

• Achieved approximately 91% structural completion on the aircraft carrier John F. Kennedy (CVN 79)

• Authenticated the keel of Virginia-class submarine New Jersey (SSN 796)

• Achieved approximately 50% completion on the RCOH of USS George Washington (CVN 73)

Technical Solutions

	Three Months Ended
	March 31
($ in millions)	2019			2018			$ Change	% Change
Revenues	$	257		$	233		24	10.3	%
Segment operating income1	5			2			3	150.0	%
Segment operating margin %1	1.9		%	0.9		%		109 bps
1 Non-GAAP measures. See Exhibit B for definitions and reconciliations.

Huntington Ingalls Industries

4101 Washington Ave. • Newport News, VA 23607

www.huntingtoningalls.com

Page 3 of 10

Technical Solutions revenues for the first quarter were $257 million, an increase of $24 million, or 10.3 percent, from the same period in 2018, primarily due to higher mission driven innovative solutions revenues following the acquisitions of G2 and Fulcrum IT Services (“Fulcrum”), as well as higher oil and gas revenues, partially offset by lower fleet support revenues.

Technical Solutions segment operating income for the first quarter was $5 million, compared to $2 million in the first quarter of 2018. The increase was primarily due to higher equity income from our nuclear and environmental joint ventures and one-time employee bonus payments in 2018 related to the Tax Act.

Key Technical Solutions milestones for the quarter:

• Completed the acquisition of Fulcrum

About Huntington Ingalls Industries

Huntington Ingalls Industries is America’s largest military shipbuilding company and a provider of professional services to partners in government and industry. For more than a century, HII’s Newport News and Ingalls shipbuilding divisions in Virginia and Mississippi have built more ships in more ship classes than any other U.S. naval shipbuilder. HII’s Technical Solutions division provides a wide range of professional services through its Fleet Support, Mission Driven Innovative Solutions, Nuclear & Environmental, and Oil & Gas groups. Headquartered in Newport News, Virginia, HII employs more than 40,000 people operating both domestically and internationally. For more information, please visit www.huntingtoningalls.com.

Conference Call Information

Huntington Ingalls Industries will webcast its earnings conference call at 9 a.m. ET 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: www.huntingtoningalls.com. A telephone replay of the conference call will be available from 12 noon today through Thursday, May 8 by calling toll-free (855) 859-2056 or (404) 537-3406 and using conference ID 6747278.

Forward-Looking Statements

Statements in this release, other than statements of historical fact, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those expressed in these statements. Factors that may cause such differences include: changes in government and customer priorities and requirements (including government budgetary constraints, shifts in defense spending, and changes in customer short-range and long-range plans); our ability to estimate our future contract costs and perform our contracts effectively; changes in procurement processes and government regulations and our ability to comply with such requirements; our ability to deliver our products and services at an affordable life cycle cost and compete within our markets; natural and environmental disasters and political instability; our ability to execute our strategic plan, including with respect to share repurchases, dividends, capital expenditures and strategic acquisitions; adverse economic conditions in the United States and globally; changes in key estimates and assumptions regarding our pension and retiree health care costs; security threats, including cyber security threats, and related disruptions; and other risk factors discussed in our filings with the U.S. Securities and Exchange Commission. 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 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.

Huntington Ingalls Industries

4101 Washington Ave. • Newport News, VA 23607

www.huntingtoningalls.com

Page 4 of 10

Exhibit A: Financial Statements

HUNTINGTON INGALLS INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

	Three Months Ended March 31
(in millions, except per share amounts)	2019			2018
Sales and service revenues
Product sales	$	1,490		$	1,370
Service revenues	590			504
Sales and service revenues	2,080			1,874
Cost of sales and service revenues
Cost of product sales	1,258			1,063
Cost of service revenues	494			432
Income from operating investments, net	4			2
Other income and gains	—			2
General and administrative expenses	171			192
Operating income	161			191
Other income (expense)
Interest expense	(16		)	(15		)
Non-operating retirement benefit	3			18
Other, net	1			1
Earnings before income taxes	149			195
Federal and foreign income taxes	31			39
Net earnings	$	118		$	156
Basic earnings per share	$	2.85		$	3.48
Weighted-average common shares outstanding	41.4			44.8
Diluted earnings per share	$	2.85		$	3.48
Weighted-average diluted shares outstanding	41.4			44.8
Dividends declared per share	$	0.86		$	0.72
Net earnings from above	$	118		$	156
Other comprehensive income
Change in unamortized benefit plan costs	25			20
Tax expense for items of other comprehensive income	(6		)	(5		)
Other comprehensive income, net of tax	19			15
Comprehensive income	$	137		$	171

Huntington Ingalls Industries

4101 Washington Ave. • Newport News, VA 23607

www.huntingtoningalls.com

Page 5 of 10

HUNTINGTON INGALLS INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

($ in millions)	March 31 2019			December 31 2018
Assets
Current Assets
Cash and cash equivalents	$	51		$	240
Accounts receivable, net of allowance for doubtful accounts of $7 million as of 2019 and $9 million as of 2018	375			252
Contract assets	1,250			1,003
Inventoried costs, net	127			128
Prepaid expenses and other current assets	119			122
Total current assets	1,922			1,745
Property, plant, and equipment, net of accumulated depreciation of $1,862 million as of 2019 and $1,829 million as of 2018	2,569			2,517
Operating lease assets	220			—
Goodwill	1,402			1,263
Other intangible assets, net of accumulated amortization of $575 million as of 2019 and $564 million as of 2018	530			492
Deferred tax assets	140			163
Miscellaneous other assets	217			203
Total assets	$	7,000		$	6,383
Liabilities and Stockholders' Equity
Current Liabilities
Trade accounts payable	$	618		$	562
Accrued employees’ compensation	264			248
Current portion of postretirement plan liabilities	131			131
Current portion of workers’ compensation liabilities	225			225
Contract liabilities	360			331
Other current liabilities	362			332
Total current liabilities	1,960			1,829
Long-term debt	1,496			1,283
Pension plan liabilities	765			764
Other postretirement plan liabilities	348			348
Workers’ compensation liabilities	459			454
Long-term operating lease liabilities	184			—
Other long-term liabilities	225			189
Total liabilities	5,437			4,867
Commitments and Contingencies
Stockholders’ Equity
Common stock, $0.01 par value; 150 million shares authorized; 53.2 million shares issued and 41.6 million shares outstanding as of March 31, 2019, and 53.1 million shares issued and 41.9 million shares outstanding as of December 31, 2018	1			1
Additional paid-in capital	1,936			1,954
Retained earnings	2,691			2,609
Treasury stock	(1,796		)	(1,760		)
Accumulated other comprehensive loss	(1,269		)	(1,288		)
Total stockholders’ equity	1,563			1,516
Total liabilities and stockholders’ equity	$	7,000		$	6,383

Huntington Ingalls Industries

4101 Washington Ave. • Newport News, VA 23607

www.huntingtoningalls.com

Page 6 of 10

HUNTINGTON INGALLS INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three Months Ended March 31
($ in millions)	2019			2018
Operating Activities
Net earnings	$	118		$	156
Adjustments to reconcile to net cash provided by (used in) operating activities
Depreciation	41			41
Amortization of purchased intangibles	11			9
Amortization of debt issuance costs	1			1
Provision for doubtful accounts	(2		)	—
Stock-based compensation	5			7
Deferred income taxes	16			5
Change in
Accounts receivable	(112		)	92
Contract assets	(229		)	(305		)
Inventoried costs	(2		)	(5		)
Prepaid expenses and other assets	(10		)	38
Accounts payable and accruals	147			100
Retiree benefits	25			(20		)
Other non-cash transactions, net	2			1
Net cash provided by operating activities	11			120
Investing Activities
Capital expenditures
Capital expenditure additions	(110		)	(75		)
Grant proceeds for capital expenditures	36			2
Acquisitions of businesses, net of cash received	(195		)	—
Proceeds from disposition of assets	—			3
Net cash used in investing activities	(269		)	(70		)
Financing Activities
Proceeds from revolving credit facility borrowings	1,179			—
Repayment of revolving credit facility borrowings	(967		)	—
Dividends paid	(36		)	(32		)
Repurchases of common stock	(84		)	(166		)
Employee taxes on certain share-based payment arrangements	(23		)	(25		)
Net cash provided by (used in) financing activities	69			(223		)
Change in cash and cash equivalents	(189		)	(173		)
Cash and cash equivalents, beginning of period	240			701
Cash and cash equivalents, end of period	$	51		$	528
Supplemental Cash Flow Disclosure
Cash paid for income taxes	$	—		$	1
Cash paid for interest	$	—		$	1
Non-Cash Investing and Financing Activities
Capital expenditures accrued in accounts payable	$	34		$	4
Accrued repurchases of common stock	$	—		$	3

Huntington Ingalls Industries

4101 Washington Ave. • Newport News, VA 23607

www.huntingtoningalls.com

Page 7 of 10

Exhibit B: Non-GAAP Measures Definitions & Reconciliations

We make reference to “segment operating income,” “segment operating margin,” and “free cash flow.”

We internally manage our operations by reference to “segment operating income” and “segment operating margin,” which are not recognized measures under GAAP. When analyzing our operating performance, investors should use segment operating income and segment operating margin in addition to, and not as alternatives for, operating income and operating margin or any other performance measure presented in accordance with GAAP. They are measures that we use to evaluate our core operating performance. We believe that segment operating income and segment operating margin reflect an additional way 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. We believe these measures are used by investors and are a useful indicator to measure our performance. Because not all companies use identical calculations, our presentation of segment operating income and segment operating margin may not be comparable to similarly titled measures of other companies.

Free cash flow is not a measure recognized under GAAP. Free cash flow has limitations as an analytical tool and

should not be considered in isolation from, or as a substitute for, analysis of our results as reported under GAAP.

We believe free cash flow is an important measure for our investors because it provides them insight into our

current and period-to-period performance and our ability to generate cash from continuing operations. We also 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. Free cash flow may

not be comparable to similarly titled measures of other companies.

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.

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

FAS/CAS Adjustment is defined as the difference between expenses for pension and other postretirement benefits determined in accordance with GAAP (FAS) and the expenses determined in accordance with U.S. Cost Accounting Standards (CAS).

Operating FAS/CAS Adjustment is defined as the difference between the service cost component of our pension and other postretirement expense determined in accordance with GAAP (FAS) and our pension and other postretirement expense under U.S. Cost Accounting Standards (CAS).

Non-current state income taxes are defined as deferred state income taxes, which reflect the change in deferred state tax assets and liabilities and the tax expense or benefit associated with changes in state uncertain tax positions in the relevant period. These amounts are recorded within operating income. Current period state income tax expense is charged to contract costs and included in cost of sales and service revenues in segment operating income.

We present financial measures adjusted for the Operating FAS/CAS Adjustment and non-current state income taxes to reflect the company’s performance based upon the pension costs and state tax expense charged to our contracts under CAS. We use these adjusted measures as internal measures of operating performance and for performance-based compensation decisions.

Huntington Ingalls Industries

4101 Washington Ave. • Newport News, VA 23607

www.huntingtoningalls.com

Page 8 of 10

Reconciliation of Segment Operating Income and Segment Operating Margin

	Three Months Ended
	March 31
($ in millions)	2019			2018
Ingalls revenues	$	584		$	585
Newport News revenues	1,265			1,082
Technical Solutions revenues	257			233
Intersegment eliminations	(26		)	(26		)
Sales and Service Revenues	2,080			1,874
Operating Income	161			191
Operating FAS/CAS Adjustment	(34		)	(72		)
Non-current state income taxes	2			(2		)
Segment Operating Income	129			117
As a percentage of sales and service revenues	6.2		%	6.2		%
Ingalls operating income	46			64
As a percentage of Ingalls revenues	7.9		%	10.9		%
Newport News operating income	78			51
As a percentage of Newport News revenues	6.2		%	4.7		%
Technical Solutions operating income	5			2
As a percentage of Technical Solutions revenues	1.9		%	0.9		%

Huntington Ingalls Industries

4101 Washington Ave. • Newport News, VA 23607

www.huntingtoningalls.com

Page 9 of 10

Reconciliation of Free Cash Flow

	Three Months Ended
	March 31
($ in millions)	2019		2018
Net cash provided by operating activities	11		120
Less capital expenditures:
Capital expenditure additions	(110	)	(75	)
Grant proceeds for capital expenditures	36		2
Free cash flow	(63	)	47

Huntington Ingalls Industries

4101 Washington Ave. • Newport News, VA 23607

www.huntingtoningalls.com

Page 10 of 10

EX-99.2

Exhibit 99.2 Q1 2019 Earnings Presentation May 2, 2019 Mike Petters President and Chief Executive Officer Chris Kastner Executive Vice President, Business Management and Chief Financial Officer

2 Forward-Looking Statements Exhibit 99.2 Statements in this presentation, other than statements of historical fact, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those expressed in these statements. Factors that may cause such differences include: changes in government and customer priorities and requirements (including government budgetary constraints, shifts in defense spending, and changes in customer short-range and long-range plans); our ability to estimate our future contract costs and perform our contracts effectively; changes in procurement processes and government regulations and our ability to comply with such requirements; our ability to deliver our products and services at an affordable life cycle cost and compete within our markets; natural and environmental disasters and political instability; our ability to execute our strategic plan, including with respect to share repurchases, dividends, capital expenditures, and strategic acquisitions; adverse economic conditions in the United States and globally; changes in key estimates and assumptions regarding our pension and retiree health care costs; security threats, including cyber security threats, and related disruptions; and other risk factors discussed in our filings with the U.S. Securities and Exchange Commission. 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 any forward-looking statements. You should not place undue reliance on any forward-looking statements that we may make. This presentation 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.

3 HII Q1 2019 Highlights Exhibit 99.2  Revenues were $2.1 billion in the quarter  Diluted EPS was $2.85 in the quarter  Total backlog at the end of the quarter was $40.6 billion; new contract awards in the quarter totaled $19.6 billion Total Backlog $50  Ingalls Shipbuilding $40.6 o Awarded $1.5 billion detail design and $40 construction contract for LPD 30  Newport News Shipbuilding $30 o Awarded $15.2 billion contract for CVN 80 $23.0 $20.7 $21.4 and CVN 81 (in billions) $20 o Achieved 91% structural completion on John F. Kennedy (CVN 79) $10  Technical Solutions $0 o Completed acquisition of Fulcrum IT Services 2016 2017 2018 Q1 2019 o Backlog grew to $1.0 billion Achieved record backlog of ~$41 billion

4 HII Q1 2019 Consolidated Results Exhibit 99.2 Revenues $2,500  HII’s revenues up 11.0% YOY due to higher $2,080 volume at Newport News and growth at Technical $2,000 $1,874 Solutions driven by recent acquisitions $1,500  HII’s operating income and margin declined YOY due to an unfavorable change in operating $1,000 (in (in millions) FAS/CAS adjustment and lower risk retirement at Ingalls $500 $0 Q1 2018 Q1 2019 Operating Income Operating Margin $250 14.0% 12.0% $191 $200 10.2% $161 10.0% 7.7% $150 8.0% $100 6.0% (in (in millions) 4.0% $50 2.0% $0 0.0% Q1 2018 Q1 2019 Q1 2018 Q1 2019

5 HII Q1 2019 Capital Deployment Exhibit 99.2 Cash Flow Generation Shareholder Distributions $150 $120 $250 Total $198 $100 $200 $47 $50 $11 $150 $0 $166 Total $100 $72 (in (in millions) ($50) (in millions) ($63) $36** ($100) ($73) ($74) $50 $32 $36 ($150) $0 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Cash from Operations CAPEX Free Cash Flow* Dividends Share Repurchases (at cost)  Made capital expenditures, net of related grant proceeds, of $74 million or 3.6% of revenues in the quarter  Made cash contributions of $10 million to pension and postretirement benefit plans in the quarter  Distributed $72 million to shareholders in the quarter o Repurchased 184 thousand shares at a cost of $36 million o Paid dividends of $36 million *Non-GAAP measure. See appendix for definition and reconciliation. ** $84 million cash paid for repurchases includes $48 million not yet settled for cash in the prior year

6 Ingalls Shipbuilding Q1 2019 Results Exhibit 99.2 Revenues  $750 Ingalls revenues flat YOY due to lower volumes on the DDG program, offset by higher volumes on the $585 $584 $600 LPD, LHA and NSC programs $450  Ingalls segment operating income and margin down YOY due to lower risk retirement on the LPD $300 (in (in millions) program, partially offset by one-time bonus payments in 2018 related to tax reform $150 $0 Q1 2018 Q1 2019 Segment Operating Income* Segment Operating Margin* $75 14.0% $64 12.0% 10.9% $60 10.0% $46 7.9% $45 8.0% $30 6.0% (in (in millions) 4.0% $15 2.0% $0 0.0% Q1 2018 Q1 2019 Q1 2018 Q1 2019 *Non-GAAP measure. See appendix for definition and reconciliation.

7 Newport News Shipbuilding Q1 2019 Results Exhibit 99.2 Revenues  Newport News revenues up 16.9% YOY due to $1,500 higher volume in aircraft carriers, Navy nuclear $1,265 support services and submarines $1,082 $1,000  Newport News segment operating income and margin up YOY due to higher volumes noted (in (in millions) $500 above and one-time bonus payments in 2018 related to tax reform $0 Q1 2018 Q1 2019 Segment Operating Income* Segment Operating Margin* $100 7.0% 6.2% $78 6.0% $80 5.0% 4.7% $60 $51 4.0% 3.0% $40 (in (in millions) 2.0% $20 1.0% $0 0.0% Q1 2018 Q1 2019 Q1 2018 Q1 2019 *Non-GAAP measure. See appendix for definition and reconciliation.

8 Technical Solutions Q1 2019 Results Exhibit 99.2 Revenues  $300 Technical Solutions revenues up 10.3% YOY due $257 to higher mission driven innovative solutions $250 $233 revenues following the acquisitions of G2 and $200 Fulcrum, as well as higher oil and gas revenues, partially offset by lower fleet support revenues $150  (in (in millions) $100 Technical Solutions segment operating income and margin up YOY primarily due to higher equity $50 income from nuclear and environmental JVs and $0 one-time bonus payments in 2018 related to tax Q1 2018 Q1 2019 reform Segment Operating Income* Segment Operating Margin* $6 2.5% $5 $5 1.9% 2.0% $4 1.5% $3 $2 1.0% 0.9% (in (in millions) $2 0.5% $1 $0 0.0% Q1 2018 Q1 2019 Q1 2018 Q1 2019 *Non-GAAP measure. See appendix for definition and reconciliation.

9 Exhibit 99.2 Appendix

10 Non-GAAP Measures Definitions Exhibit 99.2 We make reference to “segment operating income,” “segment operating margin,” and “free cash flow.” We internally manage our operations by reference to “segment operating income” and “segment operating margin,” which are not recognized measures under GAAP. When analyzing our operating performance, investors should use segment operating income and segment operating margin in addition to, and not as alternatives for, operating income and operating margin or any other performance measure presented in accordance with GAAP. They are measures that we use to evaluate our core operating performance. We believe that segment operating income and segment operating margin reflect an additional way 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. We believe these measures are used by investors and are a useful indicator to measure our performance. Because not all companies use identical calculations, our presentation of segment operating income and segment operating margin may not be comparable to similarly titled measures of other companies. Free cash flow is not a measure recognized under GAAP. Free cash flow has limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, analysis of our results as reported under GAAP. We believe free cash flow is an important measure for our investors because it provides them insight into our current and period-to-period performance and our ability to generate cash from continuing operations. We also 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. Free cash flow may not be comparable to similarly titled measures of other companies.

11 Non-GAAP Measures Definitions Cont’d Exhibit 99.2 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. Free cash flow is defined as net cash provided by (used in) operating activities less capital expenditures net of related grant proceeds. FAS/CAS Adjustment is defined as the difference between expenses for pension and other postretirement benefits determined in accordance with GAAP (FAS) and the expenses determined in accordance with U.S. Cost Accounting Standards (CAS). Operating FAS/CAS Adjustment is defined as the difference between the service cost component of our pension and other postretirement expense determined in accordance with GAAP (FAS) and our pension and other postretirement expense under U.S. Cost Accounting Standards (CAS). Non-current state income taxes are defined as deferred state income taxes, which reflect the change in deferred state tax assets and liabilities and the tax expense or benefit associated with changes in state uncertain tax positions in the relevant period. These amounts are recorded within operating income. Current period state income tax expense is charged to contract costs and included in cost of sales and service revenues in segment operating income. We present financial measures adjusted for the Operating FAS/CAS Adjustment and non-current state income taxes to reflect the company’s performance based upon the pension costs and state tax expense charged to our contracts under CAS. We use these adjusted measures as internal measures of operating performance and for performance-based compensation decisions.

12 Non-GAAP Reconciliations – Segment Operating Exhibit 99.2 Income & Segment Operating Margin Three Months Ended March 31 ($ in millions) 2019 2018 Ingalls revenues 584 585 Newport News revenues 1,265 1,082 Technical Solutions revenues 257 233 Intersegment eliminations (26) (26) Sales and Service Revenues 2,080 1,874 Operating Income 161 191 Operating FAS/CAS Adjustment (34) (72) Non-current state income taxes 2 (2) Segment Operating Income 129 117 As a percentage of sales and service revenues 6.2 % 6.2 % Ingalls operating income 46 64 As a percentage of Ingalls revenues 7.9 % 10.9 % Newport News operating income 78 51 As a percentage of Newport News revenues 6.2 % 4.7 % Technical Solutions operating income 5 2 As a percentage of Technical Solutions revenues 1.9 % 0.9 %

13 Non-GAAP Reconciliation – Free Cash Flow Exhibit 99.2 Three Months Ended March 31 ($ in millions) 2019 2018 Net cash provided by operating activities 11 120 Less capital expenditures: Capital expenditure additions (110) (75) Grant proceeds for capital expenditures 36 2 Free cash flow (63) 47 13

Exhibit 99.2