HII Revenues were $2.6 billion in the quarter
HII Net earnings of $140 million, $3.50 diluted earnings per share
Delivered Virginia-class submarine Montana (SSN 794)
Delivered amphibious transport dock Fort Lauderdale (LPD 28)
The company reaffirms FY22 revenue, margin, and free cash flow guidance
NEWPORT NEWS, VA (STL.News) HII (NYSE: HII) reported first-quarter 2022 revenues of $2.6 billion, up 13.1% from the first quarter of 2021, primarily driven by revenue attributable to the acquisition of Alion Science and its Technology (Alion) in the third quarter of 2021.
Operating income in the first quarter of 2022 was $138 million, and the operating margin was 5.4%, compared to $147 million and 6.5%, respectively, in the first quarter of 2021. The decreases in operating income and operating margin were primarily driven by lower segment operating income, partially offset by more favorable non-current state income taxes and operating FAS/CAS adjustment compared to the prior year.
Segment operating income1 in the first quarter of 2022 was $176 million, and segment operating margin1 was 6.8%, compared to $191 million and 8.4%, respectively, in the first quarter of 2021.
The decreases in segment operating income1 and segment operating margin1 were primarily driven by lower risk retirement at Newport News Shipbuilding compared to the prior year.
Net earnings in the quarter were $140 million, compared to $148 million in the first quarter of 2021. Diluted earnings per share in the quarter was $3.50, compared to $3.68 in the first quarter of 2021.
Net cash used in operating activities in the quarter was $83 million, and free cash flow was negative $126 million, compared to cash provided by operating activities of $43 million and free cash flow of negative $16 million in the first quarter of 2021.
New contract awards in the first quarter of 2022 were approximately $2.0 billion, bringing the total backlog to approximately $47.9 billion as of March 31, 2022.
“We are pleased with another quarter of consistent program execution and results that were slightly ahead of our initial expectations as we continue to navigate through a challenging operational environment,” said Chris Kastner, HII’s president, and CEO. “We believe HII is well-positioned for long-term value creation with very strong shipbuilding backlog and demand signals, as well as a highly capable Mission Technologies division that has been strategically shaped to address our customers’ most pressing needs.”
Non-GAAP measures. See Exhibit B for definitions and reconciliations. Reconciliations of forward-looking GAAP and non-GAAP measures are not provided because we are unable to provide such reconciliations without unreasonable effort due to the uncertainty and inherent difficulty of predicting the future occurrence and financial impact of certain elements of GAAP and non-GAAP measures.
NOTE: This is NOT the complete release. Please visit the company website for full details.