HII 2025 annual report

forming: firm fixed-price, fixed-price incentive, cost-type, or time and material. Approximately 46% of our revenues in 2025 were generated under fixed-price incentive contracts, approximately 50% were generated under cost-type contracts, approximately 1% were generated under time and material contracts, and approximately 3% were generated under firm fixed-price contracts. Fixed-price contracts generally tend to have more financial risk than cost-type contracts, including as a result of inflationary pressures, wage pressures and labor shortages, and supplier challenges. These contracts increase the risk that we may not recover our costs or will generate less profit or a loss if our costs exceed initial estimates. With cost-type contracts, allowable costs are generally subject to

were generated under cost-type contracts, approximately 1% were generated under time and material contracts, and approximately 3% were generated under firm fixed-price contracts. Fixed-price contracts generally tend to have more financial risk than cost-type contracts, including as a result of inflationary pressures, wage pressures and labor shortages, and supplier challenges. These contracts increase the risk that we may not recover our costs or will generate less profit or a loss if our costs exceed initial estimates. With cost-type contracts, allowable costs are generally subject to reimbursement plus an award or incentive fee, which is uncertain and may be earned over time. Under each type of contract, our operating results could be adversely affected if we are unable to control costs, particularly if we are unable to negotiate an increase in contr

cash flows. Changes in estimates used in contract accounting and contract cost growth have affected and could continue to affect our profitability and our financial position. Contract accounting requires risk-based judgments regarding estimated contract revenues and costs, and assumptions regarding schedule, technical matters, and performance. Our ability to estimate total revenues and costs at completion depends on many factors, including the size and nature of our contracts. For new shipbuilding programs, our estimates are based on contracts for the construction of ships that are not completely designed, which subjects our risk assessments, revenue and cost estimates, and related assumptions to the variability of the final ship design and an evolvi

HANGE ACT OF 1934 Commission file number 001-34910 ______________________________________________ HUNTINGTON INGALLS INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Delaware 90-0607005 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 4101

OPERATING RESULTS ($ in millions, except per share amounts) 2025 2024 Sales And Service Revenues $ 12,484 $ 11,535 Operating Income 657 535 Segment Operating Income (1) 717 573 Diluted EPS 15.39 13.96 (1) Segment operating income is a non-GAAP financial measure that excludes operating FAS/CAS adjustment and non-current state income taxes. Please see the page that precedes the back cover of this report for a reconciliation of this measure to GAAP. DRIVING RESULTS 4 2025 ANNUAL REPORT HII 5 SSN 804 NNS Lays Keel of Submarine Barb (SSN 804) DDG 1