Is the business good?
How good a business is HII?
Huntington Ingalls Industries earns 6.9% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
6.9%
Return on invested capital · cost of capital 9.0% · 2.1 points below what the capital costs: growth destroys value
- Operating margin
- 5.3%
Operating margin · Aerospace & Defense median 9.6% · 12 months to Q2 2026
- Cash conversion
- −0.12×
Cash conversion · 1.30× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- +0.25%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 8.5% |
| FY2021 | 5.4% |
| FY2022 | 5.3% |
| FY2023 | 6.8% |
| FY2024 | 4.6% |
| FY2025 | 5.3% |
Details›
- Operating margin12 months to Q2 2026
- 5.3%
- Net margin12 months to Q2 2026
- 5.0%
- Free cash flow margin
- −0.62%
- Revenue, trailing twelve months
- $13.2B
- Free cash flow, trailing twelve months
- −$82M
- Net income, trailing twelve months
- $661M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.9%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Aerospace & Defense
Ranks #25 of 48 by Smart Score