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    Huntington Ingalls Industries (HII) Just Put Itself Back In The Spotlight

    Simply Wall St·11/01/2026 04:46:35
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    Huntington Ingalls Industries (HII) just reported its highest-ever quarterly revenue, supported by large U.S. Navy contract wins and progress on unmanned ROMULUS vessels, giving investors fresh numbers to reassess the defense contractor’s valuation.

    At a share price of $316.88, Huntington Ingalls Industries has surged recently, with a 7 day share price return of 15.62% and a 30 day gain of 18.00%, although momentum has eased compared with a 90 day share price return that declined 2.78% and a year to date drop of 9.40%.

    That short term swing has arrived alongside record quarterly results, fresh U.S. Navy work on ROMULUS unmanned vessels, an updated dividend of $1.41 per share, and new leadership moves, including Renee Swan’s appointment as chief human resources officer and former CEO Mike Petters rejoining the board.

    Over a longer horizon, total shareholder return tells a different story, with a 1 year outcome close to flat at 0.04%, expanding to 44.07% over three years and 81.93% across five years. This provides recent enthusiasm with some historical context for anyone weighing today’s valuation against past holding period rewards.

    Scan defense and aerospace peers that are benefiting from similar contract momentum and filter for those with solid balance sheets using our curated list of solid balance sheet and fundamentals (24 results).

    After a record quarter and a sharp swing in Huntington Ingalls Industries’ share price, the gap between today’s US$316.88 level and published value estimates has widened. Where does a reasonable fair value anchor now sit?

    Most Popular Narrative: 11% Undervalued

    Huntington Ingalls Industries is currently trading at $316.88, while the most widely followed valuation storyline points to a fair value of about $356 using an 8.56% discount rate. This frames the recent share price jump as only part of the move implied by that thesis.

    The main thing that has to go right is sustaining planned throughput gains and workforce execution so that higher Navy budgets, distributed shipbuilding, and automation investments translate into the targeted 9 to 10% shipbuilding margin profile.

    The current valuation implies the share price does not fully reflect the raised 2026 shipbuilding revenue and margin guidance, the long duration contract awards for submarines and carriers, and the expanding role of autonomous systems and Mission Technologies earnings in the Huntington Ingalls Industries mix.

    See why 53 investors see Huntington Ingalls Industries as 11% undervalued.

    Result: Fair Value of $356 (UNDERVALUED)

    Still, the Huntington Ingalls Industries story can change quickly if carrier execution issues at Newport News drag on, or if back-end weighted free cash flow slips below guidance.

    Find out about the key risks to this Huntington Ingalls Industries narrative.

    Next Steps

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