tickdelta
Sign in

Tickdelta is free for now. Sign up and get Pro free

← Screener

HIIHuntington Ingalls Industries

Industrials · Shipbuilding · NYSE
Employees
44,000
Headquarters
Newport News, VA
CEO
Christopher D. Kastner
Next results
around Feb 4, 2027
Compare with peers → Embed

10-K 0001501585-26-000006 (2026-02-05) vs 10-K 0001501585-25-000006 (2025-02-06)

SectionCompared textWords nowChanged
Risk FactorsItem 1A11,180 29.2%
MD&AItem 79,598 22.2%
Legal ProceedingsItem 3, via Note 14 – INVESTIGATIONS, CLAIMS, AND LITIGATION1,134 14.8%
Accounting PoliciesItem 8, Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES4,991 11.6%

The redline: what was cut and what was added

In each section, the paragraph that changed most, marked against last year's 10-K: cut words struck through, new words highlighted and underlined.

MD&A 250 words changed in this paragraph; it is 33% similar to last year's version.
In October 2021, the Organization for Economic Co-operation and Development (the "OECD") ("OECD") announced the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (the "Framework"), which agreed to a two-pillar solution to address tax challenges arising from the digitalization of the economy. In December 2021, the OECD released economy, which included a 15% global minimum tax under Pillar Two Model Rules defining ("Pillar Two"). On January 5, 2026, the global minimum tax rules, which contemplate OECD released a minimum "side-by-side package" (“SbS”) for Pillar Two that includes administrative guidance on a SbS system, a permanent simplified effective tax rate safe harbor, an extension of 15%. To date, various jurisdictions have enacted, or are the transitional country-by-country reporting safe harbor through 2027, and a substance-based tax incentive safe harbor. Under this guidance, the U.S. is recognized as a qualified SbS regime which effectively alleviates U.S.-based multi-national companies from top-up tax collectible under the Pillar Two income inclusion and undertaxed payments rules. While we may be subject to Qualified Domestic Minimum Top-up Taxes in the process of enacting, legislation on these rules, and the OECD continues to release additional guidance. While it is uncertain whether the U.S. will enact legislation to adopt the minimum tax directive, certain countries jurisdictions in which we operate have adopted legislation, operate, the safe harbors provided by SbS are broadly applicable and other countries are in the process of introducing legislation to implement the minimum tax directive. Further, the OECD issued administrative guidance providing transition and safe harbor rules that could delay the impact of the minimum tax directive. We will continue to monitor the implementation of the Framework by the countries in which we operate. We currently do not expect the Framework Pillar Two framework to have a material impact on our effective tax rate or our rate, consolidated results of operation, operations, financial position, and or cash flows.

Source: Item 7, 10-K 0001501585-26-000006 vs Item 7, 10-K 0001501585-25-000006

Risk Factors 230 words changed in this paragraph; it is 50% similar to last year's version.
We have implemented detailed compliance plans and related compliance controls, policies, procedures, and training, in addition to contractual terms, as applicable, designed to prevent and detect may be liable for the misconduct by our of employees, agents, business partners, and or others working on our behalf, with us or for us, including suppliers subcontractors and subcontractors, that would violate the suppliers, due to their violations of applicable laws of the jurisdictions in which we operate, or regulations, including laws governing improper payments to government officials, the protection of export controlled or classified information, false claims, procurement integrity cost accounting and billing, antitrust and competition, and information security and data privacy. privacy, and contract terms. We have implemented a compliance program that is designed to prevent and detect misconduct. However, we cannot ensure that we will prevent all such misconduct committed by our employees, agents, suppliers, subcontractors, business partners or others working with us or on our behalf. misconduct. We have been, and may in the future be, impacted by such misconduct. The risk of Any improper conduct may increase as we expand our operations into foreign jurisdictions, including as we pursue opportunities with local and new partners. In the ordinary course we form and are members of joint ventures. Notwithstanding our robust processes, we may be unable to prevent misconduct or violations of applicable laws by these joint ventures (including their officers, directors and employees) or our business partners. Any improper actions by our employees, agents, business partners, those or others with whom we do business and others or who are working on our behalf could subject us to administrative, civil, or criminal investigations and enforcement actions, monetary and non-monetary penalties, liabilities, and the loss of privileges or other sanctions including suspension or debarment, which could have a material adverse effect on our financial position, results of operations, or cash flows. Moreover, actions that are inconsistent with our culture and values, including with respect to product safety or quality, legal or regulatory compliance, financial reporting, or people management, may cause us significant reputational damage.

Source: Item 1A, 10-K 0001501585-26-000006 vs Item 1A, 10-K 0001501585-25-000006

Accounting Policies 184 words changed in this paragraph; it is 35% similar to last year's version.
The expected return on plan assets component of retirement related costs is used to calculate net periodic expense. expense, based on such factors as historical returns, targeted asset allocations, investment policy, duration, expected future long-term performance of individual asset classes, interest rates, inflation, portfolio volatility, investment management and administrative fees, and risk management strategies. Historical plan asset performance alone has inherent limitations in predicting future returns. While studies are helpful in understanding past and current trends and performance, the rate of return assumption is based more on long-term prospective views to avoid short-term market influences. Unless plan assets and benefit obligations are subject to re-measurement during the year, the expected return on plan assets is based on the fair value of plan assets at the beginning of the year. The costs of plan amendments that provide benefits already earned by plan participants (prior service costs and credits) are deferred in accumulated other comprehensive loss and amortized over the expected future service period of active participants as of the date of amendment. Actuarial gains and losses arising from differences between assumptions and actual experience or changes in assumptions are deferred in accumulated other comprehensive loss. This unrecognized amount is amortized to the extent it exceeds 10% of the greater of the plan's benefit obligation or plan assets. The amortization period for actuarial gains and losses is the estimated remaining service life of the plan participants.

Source: Item 8, Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0001501585-26-000006 vs Item 8, Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0001501585-25-000006

Legal Proceedings 145 words changed in this paragraph; it is 55% similar to last year's version.
Antitrust Complaint - On In October 6, 2023, a class action antitrust lawsuit was filed against the Company and other defendants in the U.S. District Court for the Eastern District of Virginia. The lawsuit names several HII companies, among other companies, as defendants. The named plaintiffs generally allege that the defendant companies have adhered to a “gentlemen’s agreement” that prohibits any defendant from actively recruiting naval engineers from other defendants. The complaint seeks class certification, treble damages, and any other relief to which the plaintiffs are entitled. Depending The District Court dismissed the lawsuit against all defendants in April 2024 on statute of limitations grounds without addressing the motions to dismiss filed by the defendants on other grounds. The Fourth Circuit Court of Appeals reversed the dismissal and remanded the case to the District Court for further proceedings. In November 2025, the District Court denied the defendants' remaining motions to dismiss the lawsuit. The Company cannot at this time predict or reasonably estimate the outcome of the lawsuit, the Company could be subject to penalties and damages that could have a material adverse effect on its consolidated financial position, results of operations, or cash flows. The case is at an early stage, and, as a result, the Company currently is unable to estimate an amount or range of reasonably possible loss or to express an opinion regarding the ultimate outcome of the this matter.

Source: Item 3, via Note 14 – INVESTIGATIONS, CLAIMS, AND LITIGATION, 10-K 0001501585-26-000006 vs Item 3, via Note 13 – INVESTIGATIONS, CLAIMS, AND LITIGATION, 10-K 0001501585-25-000006

Every change, by type

Sentences and paragraphs of HII's Risk Factors and MD&A, 10-K 2026-02-05 against 10-K 2025-02-06. Each links to the text at sec.gov.

Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier (may, could, will, not, significant, material…). A year or date rolling forward is not counted.

The full word listadverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would

AddedRisk Factors
We conduct most of our business with the U.S. Government, primarily the Department. Substantially all of our revenues in 2025 was derived from products and services sold to the U.S. Government. We expect this to continue for the foreseeable future. Our U.S. Government contracts are subject to various risks. We cannot predict the impact on our existing or future contracts due to changes in the global geopolitical and economic environment, including inflationary pressures, defense spending levels and priorities, government efficiency and other budgetary priorities, customer procurement practices and processes, and other factors that may impact our customer’s short- and long-term plans and priorities or our ability to compete, capture, and perform successfully on such contracts. Any of these factors could materially adversely affect our business with the U.S. Government and our financial position, results of operations, or cash flows.

Read it in 10-K 2026-02-05 at sec.gov ↗

AddedRisk Factors
The U.S. Government also can stop work under a contract for a limited period of time for its convenience. In the event of a stop work order, contracts typically are protected by provisions covering reimbursement for costs incurred to date and for costs associated with the temporary stoppage of work plus a reasonable fee. However, such temporary stoppages may result in financial or other damages for which contractors may not be able to recover fully. In some cases, they could result in termination of a contract for convenience or reduced future orders.

Read it in 10-K 2026-02-05 at sec.gov ↗

AddedRisk Factors
resolution, a full or partial federal government shutdown may occur, as occurred in October 2025. A federal government shutdown could, in turn, result in the delay or cancellation of government programs, or the delay of payments by our customer, which could have a negative effect on our cash flows and adversely affect our future results of operations.

Read it in 10-K 2026-02-05 at sec.gov ↗

AddedRisk Factors
Our Mission Technologies segment also is highly competitive and competes domestically and internationally against mid to large A&D companies and non-traditional defense companies that may have more financial resources or capabilities. The success of our Mission Technologies division in competing depends, in part, on its ability to remain cost-competitive, respond to changes in customer acquisition strategies, accurately anticipate our customers' needs, and differentiate its products and services offerings from other market participants.

Read it in 10-K 2026-02-05 at sec.gov ↗

AddedRisk Factors
We expect that we will need to increase our shipbuilding capacity to meet current and future production demands. We are utilizing and may in the future utilize one or more strategies to increase such capacity including, among

Read it in 10-K 2026-02-05 at sec.gov ↗

AddedRisk Factors
We have been, and may in the future be, exposed to damaging storms and other extreme weather conditions, such as hurricanes and floods (which may be exacerbated by changing weather patterns or environmental conditions), rising sea waters, environmental disasters such as oil spills, acts of terrorism, and health epidemics, pandemics, and similar outbreaks. We also may experience disruptions to electrical and other power distribution networks, information technology, and other critical infrastructure needed for normal business operations and our performance. We anticipate that our facilities and operations, particularly in regions prone to natural disasters and extreme weather events, will continue to be at risk for future natural disasters.

Read it in 10-K 2026-02-05 at sec.gov ↗

AddedRisk Factors
Natural disasters, environmental disasters, and other events outside of our control can result in significant adverse impacts to our business, including by adversely impacting our workforce and supply chain, resulting in increased costs or other financial impacts, causing schedule or production delays or temporary closures of our facilities or

Read it in 10-K 2026-02-05 at sec.gov ↗

AddedRisk Factors
facilities of our customers or suppliers, or other impacts. Events impacting waterways and bodies of water used for transporting or testing our ships can cause schedule delays under our contracts with the U.S. Navy and the U.S. Coast Guard. These events also may impact our suppliers' and subcontractors' ability to perform and may disrupt the availability of raw materials and supplies needed for our performance.

Read it in 10-K 2026-02-05 at sec.gov ↗

AddedRisk Factors
Although we endeavor to mitigate the risk associated with these events, if insurance or other means of recovery or risk mitigation are unavailable or insufficient, or if we experience delays in such recovery, the damage and adverse impacts caused by such events may be significant, and our financial position, results of operations, or cash flows could be materially adversely affected.

Read it in 10-K 2026-02-05 at sec.gov ↗

AddedRisk Factors
proceedings, which could result in fines, penalties, repayments, sanctions, compensatory, treble, or other damages. Allegations of impropriety can also cause significant reputational damage.

Read it in 10-K 2026-02-05 at sec.gov ↗

AddedRisk Factors
Various federal, state, and local environmental laws and regulations impose restrictions on the discharge of pollutants into the environment and establish standards for the transportation, storage, and disposal of toxic and

Read it in 10-K 2026-02-05 at sec.gov ↗

RemovedRisk Factors
Our business is subject to a number of risks that, if realized, could materially affect our business, prospects, operating results and financial condition. These risks are discussed more fully below, and include, but are not limited to, the following:

Read it in 10-K 2025-02-06 at sec.gov ↗

RemovedRisk Factors
•We depend on the recruitment and retention of qualified personnel, and challenges associated with our ability to attract, train and retain such personnel have harmed and may continue to negatively impact our business.

Read it in 10-K 2025-02-06 at sec.gov ↗

RemovedRisk Factors
•Our Restated Bylaws include an exclusive forum requirement for certain litigation that may be initiated by our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for such disputes with us or our directors, officers, or employees.

Read it in 10-K 2025-02-06 at sec.gov ↗

RemovedRisk Factors
We conduct most of our business with the U.S. Government, primarily the DoD. The majority of our business consists of the design, construction, repair, and maintenance of nuclear-powered ships and non-nuclear ships for the U.S. Navy and coastal defense surface ships for the U.S. Coast Guard, as well as the refueling and overhaul and inactivation of nuclear-powered ships for the U.S. Navy. We also provide integrated solutions that enable today's connected, all-domain force, including C5ISR systems and operations; the application of artificial intelligence and machine learning to battlefield decisions; defense and offensive cyberspace strategies and electronic warfare; uncrewed autonomous systems; live, virtual, and constructive training solutions; fleet sustainment; and critical nuclear operations. Substantially all of our revenues in 2024 were derived from products and services sold to the U.S. Government, and we expect this to continue for the foreseeable future. In addition, substantially all of our backlog as of December 31, 2024, was related to products and services deliverable to the U.S. Government. Our U.S. Government contracts are subject to various risks, including customer political and budgetary constraints and processes, changes in customer short-term and long-term strategic plans, the timing of contract awards, significant changes in contract scheduling, recessionary impacts on government spending, intense contract award and funding

Read it in 10-K 2025-02-06 at sec.gov ↗

RemovedRisk Factors
competition, challenges forecasting costs and schedules for bids on developmental and sophisticated technical work, and contractor suspension or debarment in the event of certain legal or regulatory violations. Any of these factors could materially adversely affect our business with the U.S. Government and our financial position, results of operations, or cash flows.

Read it in 10-K 2025-02-06 at sec.gov ↗

RemovedRisk Factors
Mission Technologies competes domestically and internationally against large A&D companies, primarily L3 Harris, Amentum, ManTech, Leidos, and, increasingly, small businesses serving the intelligence community. To a lesser extent, our lines of business compete on certain contracts with major prime A&D contractors, including Lockheed Martin, General Dynamics, Northrop Grumman, Raytheon, and Boeing. The success of our Mission Technologies division in competing depends, in part, on its ability to remain cost-competitive and differentiate its products and services offerings from other market participants.

Read it in 10-K 2025-02-06 at sec.gov ↗

RemovedRisk Factors
renegotiate contracts on less favorable terms, be forced to pay penalties or liquidated damages, or suffer major losses if the customer exercises its right to terminate.

Read it in 10-K 2025-02-06 at sec.gov ↗

RemovedRisk Factors
We depend on the recruitment and retention of qualified personnel, and challenges associated with our ability to attract, train and retain such personnel have harmed and may continue to negatively impact our business.

Read it in 10-K 2025-02-06 at sec.gov ↗

RemovedRisk Factors
tools we use rely, we also may incur liability through the violation of applicable laws and regulations, third-party intellectual property, data privacy, or other rights, or contracts to which we are a party.

Read it in 10-K 2025-02-06 at sec.gov ↗

RemovedRisk Factors
We have significant operations located in regions of the United States that have been and may in the future be exposed to damaging storms, such as hurricanes and floods, the intensity and frequency of which are being exacerbated by climate change, other impacts of climate change, including rising sea waters, and environmental disasters, such as oil spills. Natural disasters can disrupt our workforce, electrical and other power distribution networks, computer and internet operations and accessibility, and critical industrial infrastructure needed for normal business operations, which can adversely affect our contract performance and, as a result, our financial results. Environmental disasters, particularly oil spills in waterways and bodies of water we use for transporting and testing our ships, can cause schedule delays under our contracts with the U.S. Navy and the U.S. Coast Guard.

Read it in 10-K 2025-02-06 at sec.gov ↗

RemovedRisk Factors
Damage and disruption resulting from natural and environmental disasters may be significant. Disruptions could also impact the availability and cost of materials needed for manufacturing and could increase insurance and other operating costs, or result in a lack of available coverage. If insurance or other risk transfer mechanisms is unavailable or insufficient to recover material costs associated with natural or environmental disasters or other events, we could experience a material adverse effect on our financial position, results of operations, or cash flows.

Read it in 10-K 2025-02-06 at sec.gov ↗

RemovedRisk Factors
Our suppliers and subcontractors are also subject to natural and environmental disasters that could affect their ability to deliver products or services or otherwise perform their contracts. Performance failures by our subcontractors or suppliers due to natural or environmental disasters may adversely affect our ability to perform our contracts, which could reduce our profitability in the event damages or other costs are not recoverable from the subcontractor or supplier, our customer, or insurers. Such events could also result in a termination of the prime contract and have an adverse effect on our ability to compete for future contracts.

Read it in 10-K 2025-02-06 at sec.gov ↗

RewordedRisk Factors
We have implemented detailed compliance plans and related compliance controls, policies, procedures, and training, in addition to contractual terms, as applicable, designed to prevent and detect may be liable for the misconduct by our of employees, agents, business partners, and or others working on our behalf, with us or for us, including suppliers subcontractors and subcontractors, that would violate the suppliers, due to their violations of applicable laws of the jurisdictions in which we operate, or regulations, including laws governing improper payments to government officials, the protection of export controlled or classified information, false claims, procurement integrity cost accounting and billing, antitrust and competition, and information security and data privacy. privacy, and contract terms.

Read it in 10-K 2026-02-05 at sec.gov ↗

RewordedRisk Factors
Breaches of our information technology may Cybersecurity attacks or other incidents can lead to the following types of adverse consequences: losses loss or misuse of sensitive information or capabilities; theft or corruption of data; harm to personnel, infrastructure or products; financial costs and liabilities; protracted interruptions of our operations and performance; significant recovery and restoration expenses; degraded performance on existing contracts; the and misuse of our products; and exposure to reputational damage, potential liability, or the loss of current or future contracts, including work on sensitive or classified systems for the U.S. products.

Read it in 10-K 2026-02-05 at sec.gov ↗

RewordedRisk Factors
In addition, the timing and amount Share repurchases also are subject to management’s discretion after consideration of share repurchases under board-approved share repurchase programs are within the discretion of management and depend upon many various factors, including our share price, results of operations, capital requirements, and general business conditions, as well as applicable law. conditions.

Read it in 10-K 2026-02-05 at sec.gov ↗

RewordedRisk Factors
Although we are relieved of all responsibility for the associated pension obligations under the GACs we have purchased to date, we may in the future purchase GACs whereby the insurance company reimburses the pension plans but we remain responsible for paying benefits under the plans to covered retirees and beneficiaries and are subject to the risk that the insurance company will default on its obligations to reimburse the pension trusts.

Read it in 10-K 2026-02-05 at sec.gov ↗

RewordedRisk Factors
If we do not have sufficient rights to use the data or other material or content on which the AI tools we use rely, we also may incur liability through the violation of applicable laws and regulations, third-party intellectual property, data privacy, or other rights, or contracts to which we are a party.

Read it in 10-K 2026-02-05 at sec.gov ↗

RewordedRisk Factors
Changes We have experienced price adjustments and renegotiations of certain of these contracts and may in defense budgetary priorities as a result of the future continue to experience such conflicts or otherwise impacts which could have an adverse impact on the programs in which we participate and, ultimately, our results.

Read it in 10-K 2026-02-05 at sec.gov ↗

RewordedRisk Factors
Our ability to satisfy our obligations on a timely basis are adversely affected if one or more of our suppliers or subcontractors are unable to provide agreed-upon products, materials, or services in a timely, compliant, and cost-effective manner, or they otherwise fail to satisfy contractual requirements.

Read it in 10-K 2026-02-05 at sec.gov ↗

RewordedRisk Factors
Navy with notice of any potential change of control of our nuclear shipbuilding operations and receive the Navy's consent to transfer certain related licenses to facilitate the Navy's ability to confirm that a potential buyer would continue to conduct our operations in a satisfactory manner. U.S.

Read it in 10-K 2026-02-05 at sec.gov ↗

RewordedRisk Factors
We utilize artificial intelligence, which could expose us to liability liability, as well as regulatory, competition, reputational, or other risks, or otherwise adversely affect our business, especially if we are unable to compete effectively with others in adopting artificial intelligence. business.

Read it in 10-K 2026-02-05 at sec.gov ↗

RewordedRisk Factors
Moreover, if we fail to meet contract deadlines or specifications, we may be required to renegotiate contracts on less favorable terms, be forced to pay penalties or liquidated damages, or suffer major losses if the customer exercises its right to terminate.

Read it in 10-K 2026-02-05 at sec.gov ↗

RewordedRisk Factors
If we cannot adapt successfully adapt to the DoD’s accelerated changing acquisition processes or if the DoD Department significantly increases the use of OTAs with favors privately funded, non-traditional defense contractors or increases cost sharing mandates, we may lose new strategic business opportunities opportunities, including in high-growth areas or strategic areas, and our future performance and results of operations could be adversely affected.

Read it in 10-K 2026-02-05 at sec.gov ↗

RewordedRisk Factors
The payment of cash dividends and repurchases of our common stock are subject to limitations under Delaware law, other applicable law laws and regulations, and the discretion of our board of directors, considered in the context of current conditions, including our earnings, other operating results, and capital requirements. directors.

Read it in 10-K 2026-02-05 at sec.gov ↗

Quiet changesRisk Factors
When If Congress is unable to pass appropriations bills before the beginning of a fiscal year, a continuing resolution can be enacted to provide stopgap funding for a specified period of time at a specified rate, often the prior year’s appropriations level.

Read it in 10-K 2026-02-05 at sec.gov ↗

Quiet changesRisk Factors
These contracts increase the risk that we may not recover all of our costs or will generate less profit or a loss if our costs exceed initial estimates.

Read it in 10-K 2026-02-05 at sec.gov ↗

Quiet changesRisk Factors
Any such events could cause delays or disruption or otherwise impact our business, and or all of which may require us to incur greater costs for security or to shut down operations for a period of time.

Read it in 10-K 2026-02-05 at sec.gov ↗

AddedMD&A
U.S. Political and Economic Environment – The political and economic landscape of the United States in 2025 has been characterized by policy realignment and a complex macroeconomic environment. The Trump Administration (the "Administration") has pursued a renewed emphasis on domestic production, trade protectionism, and deregulation, particularly across the energy, manufacturing, and technology sectors. Heightened political polarization and intermittent fiscal disputes, including a historic 43-day funding lapse, have underscored the challenges of policy continuity and long-term fiscal planning. Despite these disruptions, defense spending continues to benefit from strong bipartisan support, with consensus around the need to maintain U.S. technological superiority and military readiness amid rising global security challenges.

Read it in 10-K 2026-02-05 at sec.gov ↗

AddedMD&A
The Administration’s “America First” economic and security agenda has accelerated efforts to repatriate critical manufacturing and expand production capacity. Policy initiatives have prioritized procurement reform, domestic

Read it in 10-K 2026-02-05 at sec.gov ↗

AddedMD&A
sourcing mandates, and investment incentives to stimulate innovation in advanced defense technologies, including hypersonics, cyber defense, artificial intelligence, and space systems.

Read it in 10-K 2026-02-05 at sec.gov ↗

AddedMD&A
Economically, the United States continues to experience inflationary pressures and elevated interest rates. The economic and policy environment remains fluid, with the main variables revolving around tariffs and immigration. Fiscal conditions remain constrained, with federal debt exceeding 120% of GDP, highlighting the imbalances within the broader economy.

Read it in 10-K 2026-02-05 at sec.gov ↗

AddedMD&A
For the defense sector, these macroeconomic conditions have resulted in mixed impacts. While higher borrowing costs and input inflation have placed pressure on working capital and contract execution, strong defense demand and federal funding have continued to support revenue stability across the industrial base. Increased emphasis on domestic sourcing and production security has also stimulated capital investment in U.S. manufacturing facilities and supplier networks.

Read it in 10-K 2026-02-05 at sec.gov ↗

AddedMD&A
Supply chain realignment remains a central theme in 2025. Continued global disruptions and tariff adjustments have encouraged U.S. defense firms to diversify supplier networks, enhance vertical integration, and invest in advanced manufacturing technologies. Federal programs aimed at supporting small and mid-tier suppliers have further reinforced the broader defense ecosystem.

Read it in 10-K 2026-02-05 at sec.gov ↗

AddedMD&A
Defense Spending Environment – On May 2, 2025, the Administration released the President's topline recommendations on discretionary funding levels for fiscal year 2026, followed by detailed budget justification documents in June. Additionally, under the Act, Congress provided mandatory funding of more than $29 billion for Shipbuilding and the Maritime Industrial Base. This funding included one Virginia class (SSN 774) fast attack submarine and two Arleigh-Burke class (DDG 51) guided-missile destroyers, and provided additional funding for amphibious warfare ships and unmanned surface vessels.

Read it in 10-K 2026-02-05 at sec.gov ↗

AddedMD&A
Overall, the fiscal year 2026 NDAA authorizes $900.6 billion in national security funding. The legislation supports our shipbuilding priorities with a total authorization of $26 billion for shipbuilding programs, including procurement authorization for the third Columbia class (SSBN 826) submarine and advance procurement for future submarines, one Virginia class (SSN 774) fast attack submarine and advance procurement for future submarines, advance procurement for future Arleigh-Burke class (DDG 51) class destroyers, and full funding for the Gerald R. Ford class (CVN 78) aircraft carrier program. Additionally, the fiscal year 2026 NDAA provides authorization for William J. Clinton (CVN 82) and George W. Bush (CVN 83), including incremental funding, advance construction, and advance procurement authorities; incremental funding and authorization for up to five Columbia class (SSBN 826) submarines; and continuous production authority for certain components of Virginia class (SSN 774) submarines.

Read it in 10-K 2026-02-05 at sec.gov ↗

AddedMD&A
Fiscal year 2026 began on October 1, 2025 without annual appropriations legislation or a continuing resolution. As a result, parts of the U.S. Government temporarily shut down. On November 12, after a 43-day federal government shutdown, lawmakers passed and the President signed a continuing resolution funding the government until

Read it in 10-K 2026-02-05 at sec.gov ↗

AddedMD&A
January 30, 2026. Lawmakers also passed three annual funding bills – Military Construction-VA, Agriculture-FDA, and Legislative Branch – to fund parts of the government long-term.

Read it in 10-K 2026-02-05 at sec.gov ↗

AddedMD&A
The negotiated fiscal year 2026 defense appropriations bill includes continued incremental funding for Enterprise (CVN 80) and Doris Miller (CVN 81), along with advance procurement for William J. Clinton (CVN 82); continued funding for the RCOH of USS John C. Stennis (CVN 74); funding for the Virginia class (SSN 774) and Columbia class (SSBN 826) submarine programs; advanced procurement for the Arleigh Burke class (DDG 51) program, including additional funding for shipyard infrastructure and wage enhancements; and funding for long-lead-time materials for the new frigate program. Additionally, the bill provides $1.5 billion for the Maritime Industrial Base to invest in critical areas including supplier capacity and capability, strategic outsourcing, workforce training, and technology and infrastructure.

Read it in 10-K 2026-02-05 at sec.gov ↗

RemovedMD&A
U.S. Political and Economic Environment – The November 2024 elections, which resulted in Republican control of the executive and legislative branches, has resulted in a range of policy changes both domestically and internationally as Republicans seek to reorient U.S. priorities. The new Administration has employed, and is expected to continue to employ, executive actions and other methods, including regulations and policy proposals that impact trade, tax, immigration, energy policies, and other areas.

Read it in 10-K 2025-02-06 at sec.gov ↗

RemovedMD&A
The debt ceiling is expected to continue to be an area of considerable debate. High debt levels may impose fiscal constraints on many policy objectives, complicating efforts to deliver on promises made during the elections.

Read it in 10-K 2025-02-06 at sec.gov ↗

RemovedMD&A
Domestically, we expect that national debt levels, inflationary pressures, gross domestic product growth, among other considerations, could impact U.S. budgets and priorities, including with respect to discretionary spending. While monthly inflation rates have declined since peaking at 9.1% in June of 2022, rising military personnel and operations and maintenance costs continue to pressure the Pentagon’s investment portfolio buying power. If above-

Read it in 10-K 2025-02-06 at sec.gov ↗

RemovedMD&A
Defense Spending Environment – On March 11, 2024, the Biden Administration proposed a Fiscal Year (FY) 2025 budget request of $849.8 billion for the DoD, consistent with the discretionary funding cap for defense approved by Congress under the Financial Responsibility Act (“FRA”) of 2023. Additionally, the FRA included a sequestration mechanism to incentivize Congress to enact regular, full-year appropriations legislation instead of relying on continuing resolutions ("CR"). Although the Federal government is operating under a CR through March 14, 2025, sequestration would not be enforced until April 30, 2025 and would be reversed upon the enactment of full-year appropriations. The emergency national security supplemental funding legislation enacted during fiscal year 2025 is not subject to the FRA budget caps.

Read it in 10-K 2025-02-06 at sec.gov ↗

RemovedMD&A
The House and Senate reached a compromise agreement on the National Defense Authorization Act ("NDAA") for fiscal year 2025 in December 2024. Overall, the fiscal year 2025 NDAA authorizes $883.7 billion in national security spending, including $849.9 billion for the Pentagon, consistent with the spending caps directed in the FRA. The compromise legislation supports our shipbuilding priorities with a total authorization of $32.7 billion for shipbuilding programs, including procurement authorization of the Travis Manion (LPD 33) Flight II amphibious ship, one Virginia class (SSN 774) submarine, three Arleigh Burke class (DDG 51) destroyers and the RCOH of USS Harry S. Truman (CVN 75). Additionally, the fiscal year 2025 NDAA supports the amphibious warship bundle contract signed in 2024 by authorizing advanced procurement funding for LPD 34 (unnamed), LPD 35 (unnamed), and Helmand Province (LHA 10).

Read it in 10-K 2025-02-06 at sec.gov ↗

RemovedMD&A
Both House and Senate appropriations bills have passed out of committee, and the House defense appropriations bill has been approved by the full House. The House defense appropriations bill funds the Defense Department within the spending caps in the 2023 debt limit deal and supports the President’s budget request by funding one Virginia class (SSN 774) submarine, two Arleigh Burke class (DDG 51) destroyers, one LPD Flight II amphibious ship, and one CVN RCOH. The Senate Appropriations Committee added approximately $21 billion in emergency funding not subject to the FRA caps and included fiscal year 2025 funding for three Arleigh Burke class (DDG 51) destroyers, one Virginia class (SSN 774) submarine, one LPD Flight II amphibious ship, one CVN RCOH, one FFG-62 frigate, and advanced procurement funding for an additional Arleigh Burke class destroyer in fiscal year 2026.

Read it in 10-K 2025-02-06 at sec.gov ↗

RemovedMD&A
Although a new fiscal year began on October 1, 2024, annual appropriations to fund the federal government for fiscal year 2025 have not been enacted. To provide Congress additional time to reach agreements on funding levels for federal agencies, a continuing resolution was enacted extending funding through December 20, 2024, at fiscal year 2024 levels. Congress passed a second CR in December 2024 that extended federal funding through March 14, 2025.

Read it in 10-K 2025-02-06 at sec.gov ↗

RemovedMD&A
While the DoD is normally prohibited from starting new programs or increasing funding on existing programs under a CR, the current CR includes anomalies that will allow the DoD to deviate from typical restrictions and obligate funding to support procurement of the Virginia class and Columbia class submarine programs. A $5.7 billion emergency appropriations anomaly supports fiscal year 2024 and fiscal year 2025 Virginia class submarines as well as workforce wages and shipyard investments. This funding does not count against the FRA fiscal year 2025 funding cap.

Read it in 10-K 2025-02-06 at sec.gov ↗

RemovedMD&A
We cannot predict the outcome of the fiscal year 2025 budget process or whether additional short-term funding will be required in the event annual appropriations measures are not finalized by the expiration date of the current CR.

Read it in 10-K 2025-02-06 at sec.gov ↗

RemovedMD&A
The ongoing conflict in Ukraine and the associated sanctions have impacted the global economy, caused heightened cyber and other security risks, exacerbated supply chain challenges, resulted in higher energy costs, and further impacted inflationary pressures. In addition, tensions with China, along with hostilities in the Middle East, continued conflicts globally, and changes in international trade policies have impacted, and could continue to impact, the global market for defense products, services, and solutions.

Read it in 10-K 2025-02-06 at sec.gov ↗

RewordedMD&A
We currently While we may be subject to Qualified Domestic Minimum Top-up Taxes in the jurisdictions in which we operate, the safe harbors provided by SbS are broadly applicable and we do not expect the Framework Pillar Two framework to have a material impact on our effective tax rate or our rate, consolidated results of operation, operations, financial position, and or cash flows.

Read it in 10-K 2026-02-05 at sec.gov ↗

RewordedMD&A
Year We made the following minimum and discretionary contributions to our pension and other postretirement benefit plans in the years ended December 31, 2025, 2024, and 2023:Year Ended December 31 ($ in millions) 2025 2024 2023 2022 Pension plans Discretionary Qualified $ — $ — $ — Non-qualified 14 11 12 10 Other benefit plans 40 36 32 31 Total contributions $ 54 $ 47 $ 44 $ 41

Read it in 10-K 2026-02-05 at sec.gov ↗

RewordedMD&A
In October 2021, the Organization for Economic Co-operation and Development (the "OECD") ("OECD") announced the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (the "Framework"), which agreed to a two-pillar solution to address tax challenges arising from the digitalization of the economy. economy, which included a 15% global minimum tax under Pillar Two Model Rules ("Pillar Two").

Read it in 10-K 2026-02-05 at sec.gov ↗

RewordedMD&A
We have As a teaming agreement with subcontractor to Electric Boat Boat, we leverage our Virginia class (SSN 774) experience to perform design work and build modules for the entire Columbia class (SSBN 826) submarine program that leverages our Virginia class (SSN 774) experience. program.

Read it in 10-K 2026-02-05 at sec.gov ↗

RewordedMD&A
Free cash flow in 2024 decreased $652 2025 increased $760 million from 2023, 2024, primarily due to an unfavorable a favorable change in trade working capital driven by the timing of billings across programs, lower earnings, cash paid for income taxes, and higher capital expenditures, which was earnings, partially offset by lower payments for income taxes. higher capital expenditures.

Read it in 10-K 2026-02-05 at sec.gov ↗

RewordedMD&A
Ingalls Newport News sales and service revenues, including intersegment sales, increased $15 $538 million, or 1%, 9%, in 2024 2025 compared to 2023, 2024, primarily driven by higher volumes in surface combatants, partially offset by lower volumes in amphibious assault ships submarines and the NSC program. aircraft carriers.

Read it in 10-K 2026-02-05 at sec.gov ↗

RewordedMD&A
Mission Technologies sales and service revenues, including intersegment sales, for the year ended December 31, 2024, 2025, increased $238 $107 million, or 9%, 4%, compared to 2023, 2024, primarily due to higher volumes in CEW&S Warfare Systems, Global Security, and C5ISR contracts. Unmanned Systems, partially offset by lower volumes in All-Domain Operations.

Read it in 10-K 2026-02-05 at sec.gov ↗

RewordedMD&A
Sales and service revenues for the year ended December 31, 2024, 2025, increased $81 $949 million, or 1%, 8%, compared to the same period in 2023, 2024, due to higher volumes at Newport News, Ingalls, and Mission Technologies and Ingalls, partially offset by lower volumes at Newport News. Technologies.

Read it in 10-K 2026-02-05 at sec.gov ↗

RewordedMD&A
Refer to "Segment Consolidated Operating Results" and "Product and Service Revenues and Cost Analysis" Results in this section for details related to cost of sales for both product sales and service revenues. revenues and segment operating income.

Read it in 10-K 2026-02-05 at sec.gov ↗

RewordedMD&A
The decrease increase was primarily driven by lower performance on contract adjustments in the Virginia class (SSN 774) submarine program and aircraft carriers, program, partially offset by contract adjustments and incentives on in 2024 in the Columbia class (SSBN 826) RCOH program.

Read it in 10-K 2026-02-05 at sec.gov ↗

RewordedMD&A
Ingalls sales and service revenues, including intersegment sales, increased $15 $311 million, or 1%, 11%, in 2024 2025 compared to 2023, 2024, primarily driven by higher volumes in surface combatants, partially offset by lower volumes in combatants and amphibious assault ships and the NSC program. ships.

Read it in 10-K 2026-02-05 at sec.gov ↗

RewordedMD&A
Cost Segment cost of service revenues product sales in 2024 2025 increased $245 $604 million, or 7%, 9%, compared to 2023, consistent with 2024, primarily due to the higher service product volumes described above.

Read it in 10-K 2026-02-05 at sec.gov ↗

Quiet changesMD&A
Our supply chain has been impacted further by delivery delays, raw material shortages materials shortages, and price increases caused by continued inflationary pressures.

Read it in 10-K 2026-02-05 at sec.gov ↗

Work on HII in a spreadsheet: Excel workbook (a sheet per section, ten years by column, charts, links to the filings) · CSV. For a Google Sheet that stays up to date, paste =IMPORTDATA("https://tickdelta.com/company/HII/export.csv") into a cell.