Huntington Ingalls Industries (HII) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

November 3, 2022 09:00 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 Third Quarter 2022 HII Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [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 third quarter 2022 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 Law. 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, Christy. Good morning, everyone and thank you for joining us on today's call. I would like to begin today by highlighting the HII teams that work hard day in and day out to support our national defense customers, craftsmen and women constructing and overhauling the most powerful and survivable naval ships ever built, engineers and technology specialists developing critical capabilities and mission-driven solutions, all aligned with supporting our customers' priorities and pressing national defense needs. Thank you to the entire HII team.

Now, let's turn to our results on Page 3 of the presentation. In the third quarter, we had sales of $2.6 billion which were 12% higher than 2021 and diluted EPS was $3.44 for the quarter, down from $3.65 in 2021. New contract awards during the quarter were approximately $2.1 billion which results in backlog of approximately $46.7 billion at the end of the quarter, of which $23.2 billion is currently funded. We continue to make progress across all of our shipbuilding programs. At Ingalls, we recently completed acceptance trials on DDG 123 Lenah Sutcliffe Higbee. And during the third quarter, the keel was authenticated for DDG 129 Jeremiah Denton. In our amphibious ship product lines, fabrication began on LPD 31 Pittsburgh. And last week, we were awarded a $2.4 billion detail design and construction contract for LHA 9.