Huntington Ingalls Industries (HII) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

May 4, 2023 9:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Ladies and gentlemen, thank you for standing by and welcome to the First Quarter 2023 HII Earnings Conference Call. [Operator Instructions] Please be advised that today's conference call is being recorded. [Operator Instructions].

I would now like to hand the call over to Christie Thomas, Vice President of Investor Relations. Mrs. Thomas, you may begin.

Christie Thomas

Thank you, operator, and good morning, everyone. Welcome to the HII First Quarter 2023 Earnings Conference Call. Joining me today on the call are Chris Kastner, our President and CEO; and Tom Stiehle, Executive Vice President and CFO.

As a reminder, any forward-looking statements made today that are not historical facts are considered our company's estimates or expectations and are forward-looking statements made pursuant to the safe harbor provisions of federal securities laws. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. For additional information regarding factors that could cause actual results to differ materially from expected results, refer to our SEC filings.

Also, in their remarks today, Chris and Tom will refer to certain non-GAAP measures. For reconciliations of these metrics to the comparable GAAP measures, please see the slides that accompany this webcast, which are available on the Investor Relations website at ir.hii.com.

With that, I would like to turn the call over to our President and CEO, Chris Kastner. Chris?

Chris Kastner

Thanks, Christie. Good morning, everyone, and thank you for joining us on today's call. First quarter results reflect a good start to the year as we stay on course executing our nearly $50 billion of backlog and growing our Mission Technologies business in markets that support our customers. And I want to thank our 43,000 employees for continuing to deliver excellent products and services in support of national security.

Our priority continues to be a focus on the fundamentals in shipbuilding, driving our shipbuilding schedules and delivering critically needed assets to the fleet. With that, we believe our milestones for 2023 and 2024 remain on track and consistent with our prior expectations.

As we discussed last quarter, 2023 milestones include 3 ship launches and 5 ship deliveries, and the cadence of these is expected to pick up through the year, specifically in the third and fourth quarters.

I will note that we are working closely with the Navy on a change to optimize the CVN 79 schedule, which pulls baseline work from the post-shakedown availability into the construction period in order to provide more capability at ship delivery. Ultimately, this change would allow for a more capable Kennedy to join the Navy's operational fleet. And once this contract change is finalized, we will adjust the crew move aboard and ship delivery dates accordingly.