US-based military shipbuilding company Huntington Ingalls Industries (HII) has reported a 10.1% year-on-year (YOY) increase in revenue in the second quarter of 2021.
The company’s revenue was $2.2bn in the three-month period that ended on 30 June, compared to $2bn in the same period a year ago.
Operating income jumped by 124.6% to $128m in Q2 2021. The company’s operating margin also improved from 2.8% to 5.7% on a YOY basis.
The increase was attributed to stronger segment operating results compared to the prior year despite less favourable operating FAS/CAS adjustment.
HII’s net earnings soared 143.4% to $129m in the second quarter of this year. A year ago, the figure was $53m.
Diluted earnings per share in the quarter was $3.20, compared to $1.30 last year.
The total value of the new contract won in the quarter was nearly $1.2bn. This brought its total backlog to $47.7bn as of 30 June 2021.
HII president and CEO Mike Petters said: “We are pleased with second-quarter results that demonstrate another quarter of consistent programme execution.
“We recently announced the agreement to acquire Alion Science and Technology, which we believe is a perfect complement to our existing capabilities in the technology-driven defence solutions space.
“We believe Alion offers significant growth potential and represents an investment in capabilities that are critical to national security now and into the future and will generate significant value for our stakeholders over the long term.”
HII will acquire Alion Science and Technology from Veritas Capital for a cash consideration of $1.65bn.
Once complete, Alion will become part of Huntington Ingalls Industries’ Technical Solutions division.