HII - Earnings call 3 2023 | Huntington Ingalls Industries, Inc.

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Operator

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

I'd like to hand the call over to Christie Thomas, Vice President of Investor Relations. Ms. begin. may you Thomas,

Christie Thomas

and HII I'd Conference Third operator, everyone Call. to to the Quarter good you, like morning. welcome Thank XXXX Earnings

President Joining Chris Stiehle, the on Vice and our Executive CFO. me Thomas CEO; and call President and today Kastner, are

today made that implied or factors of are statements meaning cause are not Private future relate XXXX. from our These risks, Securities forward-looking Litigation and uncertainties results to financial be statements forward-looking reminder, our historical within statements. events statements a involve that As unknown of to other performance, future the actual and future the known facts, and results by Reform may materially different expressed or Act these

actual their differ Also measures. results expected results. Please certain today, refer remarks from to factors our see filings our for materially in SEC and non-GAAP important to Tom Chris will cause that could

available slides Relations For see this webcast, reconciliations the measures, GAAP are of our metrics these the accompany that at comparable ir.hii.com. on website's please to which page Investor

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

Christopher Kastner

and line Christie, X across morning, Thanks, cash free our quarterly we and flow of performance steady strong growth divisions, operational all continued demonstrate generation. everyone. results that released good top Today,

at of Technologies our business growth quarter milestone through book-to-bill and focus revenue on Our continued the fundamentals X.X% Mission strong billion achievements. the the in year-to-date is evidenced or $X.X shipbuilding outstanding

information increase these we to and free are our results, remarks. will flow Given pleased his increases Tom on revenue year-to-date more XXXX guidance our cash during provide and

and parallel, opportunities. defense priorities to leading supporting strategy, executing winning technologies national new workforce by and top Our business platforms, on talented remains customers' our focused delivering in quality solutions growth our

their the I innovation thank would dedication, X results, and for divisions our HII Before to focus. customer employees at all into like get I

from revenue line resulting XXXX. presentation. of X.X% Let's a record Page third of quarter growth quarter XXXX, of our $X.XX third in Diluted share for in earnings Top turn results per on quarter, the quarter the X was $X.XX the up third $X.X billion. increased to from the of

awards $XX New of in quarter currently which at approximately the of billion $X.X which resulted contract billion, the is during end $XX quarter, funded. backlog the of billion were

update delivered Fallujah. milestones laid in the completed Assault Also, Shifting ship successfully our we for at X keel and on her launched an we month. Ingalls to for NSC quarter last shipbuilding LHA X LHA third acceptance Calhoun Bougainville the and XX trials Amphibious

christened we successfully Flight III the DDG-XXX Arleigh In launched Ted addition, and Stevens. Burke-class destroyer

is this and Jr. complete fourth deliver quarter trials the McCool, Richard to expected XX acceptance LPD in of Finally, year.

Ingall's contract and USS FY XX Flight awards and procurement DDG multiyear 'XX included this XXXX of III $XXX destroyers -- for a contract in award of Zumwalt X modernization significant DDG Burke-class competition. quarter a the of million Arleigh the

before the progress to Massachusetts -- At XXX float SSN Newport Oklahoma, reached New Virginia-class the of end SSNXXX. on -- keel to we Arkansas SSN attack pressure make Jersey continue XXX XXX the off we deliver complete News, on submarines the hull expect and SSN as we We year. and of laid and

XX% powered turned having progress compartments test the of the material. bundling the over and approximately more majority CVN CVN-XX We the from XX% aircraft focused Enterprise XX to has buy the testing. of CVN-XX ship for and systems XX is early and well procurement compartment combined complete. completion for is The integrated on make Navy of cost the nuclear progressing also Kennedy program, of combat and off is and continue lighting carrier than on construction, the benefited to

on order savings approach has been of to placed material the over the CVN-XX already ordering. XX% So much so that significant traditional generating over for

effects of chain has impact CVN-XX. COVID late. Navy minimize from from delay, major XX employ forecasted to HII and delays delivery mitigate approximately subsequent with To to CVN-XX to of the and months COVID. supply which chain, build primarily due driven the techniques, worked the the the However, to supply component is labor be innovative

At and of $XXX awards sales now integrate order, the posted quarter in $X.X -- Navy's a in Minotaur major the backlog growth, engineering million potential quarter Mission task straight value billion record saw the $X competitions quarter won of backlog third book-to-bill Guard. into quarter contract million resulted also to year-to-date third Navy, software program revenue Lionfish $X.X X.X addition has joint order Coast in XXXX. operations the included of we book-to-bill to maritime wins platforms and for billion $XXX of bookings billion total Technologies, task SUUV In over year-to-date. over Marine These Technologies million, and Mission with strong strategic products the third XX% Corps quarter a the the sales million. Significant emerging network the of We and for in several and contract $XXX

applaud to allow that from as funding possible and Congress federal for appropriations government the typical fiscal proceeding to congress will under anomaly bills. to restrictions a obligate operations Washington, funds an resolution, The XX. Columbia in the the While the activities nuclear began We of including -- begin deviate submarine. CR to look Shifting we on the as continuing November new government which year class second through construction DoD forward in expeditiously

XXXX to the for and of other support Congress We forward bills Defense respective completing strong with security their Act also Senate national work the House the priorities. on shipbuilding the look National Authorization reflecting and fiscal year

of are XXXX budget thus the and in authorization the Final outcomes we the our far X respective year fiscal conference jurisdiction eventual cycle. will depend programs the committees during on by support of between negotiations encouraged appropriations committees,

Now labor. to turning

the this craft addressing do on personnel through X% our We full year-to-date have X,XXX. the us work approximately We was We Technologies. quarter, third rate a demonstrating of nearly attendance this driving summary, and in quarter, forward. improve of workforce are strong on to growth our hired X,XXX puts focus plan consistent us year progress have executing which against and and the and our teams very to our and retention ahead shipbuilding of Retention remain laser-focused backlog -- Mission going acceleration areas continued will In development strategy for of challenge. focus

to value And for our and to for of I customers, remarks on will committed turn financial some now Tom Tom? stakeholders, shareholders, create remain suppliers call We to continuing employees, all results. communities. our the our over

Thomas Stiehle

results. Thanks, third Chris, to and be our good morning. review Today, I'll quarter

release on the issued to please more the to morning For detail website. this earnings our results, posted and segment refer

represents X quarter This result Mission increased to year to compared at increase growth revenue approximately consolidated was record for Slide Beginning $X.X with billion largely of revenues the our a in of third the and HII. Ingalls Shipbuilding. our X.X% period results last and quarter on third Technologies presentation, attributable same

quarter operating X% million period last due FAS/CAS the the or income increased the for compares was margin third taxes more adjustment increase Operating prior in XXXX, year. and of more X.X% $XXX and by million same operating compared favorable state income The XX% to in favorable of segment of to the income operating operating $XX quarter to higher noncurrent operating of year primarily income, a period. from margin

in per -- $X.XX year. $XXX Net in earnings third the quarter and of were Diluted the quarter $X.XX to quarter share million the in earnings quarter to third XXXX. million compared $XXX compared the of was the in previous

year. last million revenues the quarter and increased by higher driven period amphibious $XXX mentioned of on or about I primarily $XX in and assault earlier operating ships due combatants. the volumes in estimates of X. the million income Slide Ingalls' Moving changes margin from last of Ingalls operating surface to million from compared contract XX% same higher on $XX the year, primarily year. and prior XX.X% quarter volumes to to in increased favorable

period the revenues News, X% $X.XX year. Newport million of or last increased At $X billion from same

incentives was program lower million for earned of third the compared on QX submarine income decrease the $XX operating partially the income performance to by a quarter to $XX Operating of in News the Columbia-class due program. offset improved quarter was Virginia-class last million, in XXXX, Newport third year. of contract

quarter X.X%, the margin we of slightly operating for the was third in Shipbuilding quarter. had outlook provided the ahead

year fourth And margin we unchanged. are remains the shipbuilding in XXXX shipbuilding have quarter. for as previously outlook Our milestones concentrated largely our noted, the operating full expected for

the mentioned about the in income margin mission-based third of to operating volumes quarter driven XXXX, Technologies revenues in driven for quarter improved purchased intangible X.X%. included assets. in increase performance as Mission of amortization operating higher of income was in solutions EBITDA Cyber, Current million Technologies, third Technologies $XX in compares to increased Mission well of primarily of as volumes the compared results primarily last was operating Electronic At in Technologies million systems. by $XX CXISR due million our just unmanned or I Mission approximately the year. higher to Mission of $XX by $XXX million quarter third Programs. $XX Warfare XX% million of Space and income The

of cash Turning $XX million in the X. of $XXX the was were $XXX operations the in of or compares XXXX. X.X% Net from $XX was in expenditures third used Cash cash to $XX negative million. million and X.X% to quarter revenues of million, flow free cash expenditures revenues. of flow Slide $XX net Free in or This million capital operations of quarter million capital quarter.

to in million contributions quarter. plans The the pension postretirement -- our other $XX were and Cash benefit

dividends During or the per aggregate. of paid third in we million $XX $X.XX share quarter,

XXX,XXX the cost of we an at shares third the an aggregate Year-to-date of repurchased $XX shares approximately aggregate also XXX,XXX million. approximately approximately during We million. quarter repurchased at through $XX quarter, cost have approximately

and to of Moving of on end an asset early asset are pension points the returns roughly Our the to Through of year-to-date XXXX. and approximately sensitivities forecast rates a performance discount discount subject approximately XX XXXX X% Pension our I'd third is criteria. numbers rate X.X%. for on update year-end X. related our X.X%. to and in increased quarter, Slide -- provide like basis return measurement assumed have We

strong to We that call estimates update our Also, funded pension remains provide would on year-to-date. our improved quarter fourth multiyear February. I pension like in of and will has status highlight a earnings

will I remain to impacts the flow related changes that Additionally, note pension minimal. cash

to Moving Slide on XX.

guidance from strong we COVID million, from as of of driven is the as cash $XX an increasing cash primarily million contributions the quarter free conclusion repayment third increase flow, positive advances approximately Technologies. This Given negotiations $XXX prior well regarding XXXX increase flow are the midpoint free the Mission our cash flow the of guidance. to by

of planned substantially cash of we flow free period which free XXXX is that billion after track. expect flow to to and cash $X.X continue over continue expect on through to XXXX highlight to repayment, X-year shareholders the XXXX. debt approximately I'll all We distribute currently

Turning to Slide XX.

'XX our to fiscal revenue flow cash guidance addition we Technologies. our both Mission year shipbuilding for guidance, free increasing and are In increasing

of are revising billion billion. $X.X billion increasing guidance an revenues revenue $XX from shipbuilding is of all third midpoint emission midpoint our billion Technologies the to by to quarter Given approximately range the $X.X guidance to strong $X.X revenue guidance from billion. million billion across guidance range increasing $X.X divisions, $X.XX of approximately of to increased X to a technologies in we shipbuilding and revenue the $X.X Mission increase of This million. a $XX an revenue

shipbuilding margin technologies Additionally, guidance. we our emission reaffirming are

delivered To our ahead strong quarter summarize, and slightly quarter. expectations the finished in we margin the revenue of for growth third

backlog robust flow. also free $X.X cash opportunity Technologies an addition billion. quarter $XX potential and of in [ book-to-bill of ] delivered billion over billion to strong had $X value a awards Mission has the total contract of We pipeline impressive year-to-date third

we milestones year, continue laid to the guidance. raise to and Looking of flow the free are and as cash the that XXXX pleased we've out. revenue commitments margin reaffirm to and execute we guidance end

to I'll to that, the manage over Q&A. call Christie With back turn

Christie Thomas

Thanks, Tom.

queue reminder question call, Operator, can get we I to limit follow-up please a to the . Q&A. will and X it people possible. yourself as initial the X as over on many through so the to As you manage everyone turn to

Operator

question Scott [Operator Thank Deuschle you, Deutsche Bank. Our Christie. comes Instructions] today first from from

Scott Deuschle

CVN impact EACs you on financial I accrued was XX, for then think when from what's ] quarter? books the you closed it And said the XX Chris, the the delay the months? known was that [ delay and

Christopher Kastner

And while our been months. risk that we've XX approximately financials. a for holding Yes, on

a impact doing That the in in is is bottom impact chain no major there's best going mitigates protection, equipment on impact. by related it the good and the it to but on to EPA team no some do it they're financial that mitigate focused financial issues impact the team going to the best we and to some impact ship. driven but the related it. their do their some news The mitigate So of which is and have to supply the bit, is forward.

Scott Deuschle

Huntington is just Okay. And thing negative great. due impacts Block on to set I maybe like to That's or partner level a understand books costs. EACs maybe supplier to Virginia-class should investors boats the confusing then Can interpret V we one you read-through us on the bit trying that? your that's think how to been when

it your are Block realize EACs, impact mean booking your to on -- than probably but lower I any trajectory rates doesn't to book And book longer-term does it need there, necessarily you negative so V. have margin

Christopher Kastner

Yes.

So or opportunity continue we on down programs fit. basis EACs V up to transition and believe in Block some wouldn't I'm partners' upside. out Block we're a V, where -- all the adjustments on very Block evaluate that But see on into we comfortable appropriate IV I take our of our there's comment with as we as and the get I we at. have boats accounting, should our quarterly in but

Operator

Strauss David from Our from Barclays. next today question comes

Unknown Analyst

in to ask some of the be? if . see you might the outlook margins any drivers Corn actually improvement wanted shipbuilding is about This on for and I David. what XXXX, for Josh

Christopher Kastner

Yes.

I fully continuing as in expect Block transitioning of improve move improvement in Newport IV to News. and forward. all incremental we Newport So margins Block about and into the shipbuilding News out boats It's

changed quarter-to-quarter. the hasn't story So really

is retention. but stabilize. work need good, I'm comfortable with good. to continues News we're We Labor is still Newport where on hiring to at.

Operator

from Doug question next comes Our from Harned Bernstein.

Douglas Harned

QX On going have get to News, at you for to talked to to improvement lot at But the guidance, in QX. Because margins you it upside in has X.X% walk have there? you're have your quarter. your met you goal what your about you of margins to when like. in you're Can meet through the of look Newport happen margin to going looks a

Thomas Stiehle

It's Tom here.

So we consistent throughout have the been year.

the half XXX ship they for Newport that specifically of X You're milestones large saying XXX the the then float-off. building on News, for and back delivery milestones the in there year, had

lot a focus be half there. to the down the of program. going of a that's in So back driver There's

that about there. training, the down extra Chris the operating the we've that attrition has talked and system hiring the going, we're added

have I COVID portfolio think incremental in start start the as we [indiscernible] Newport mirror the improvement there. News. we sets ships of becomes were impacting at opportunity right new and a them that especially That further the against margin ships, further at as although that lower abound off rearview story are exists, we contracts level.

performance rework ensuring hitting weeks here and that the progress of the specifically last the programs ships But on QX, described, we just just I check. and year, its the continued we're I that think for milestones have the and XX getting of keeping hedge the on in on the kind watching we have

Christopher Kastner

support trial absolutely Yes. and needs get complete. float their to get then to to test essentially we need needs to get their is continue trials. to it's and off should to needs through XXX boat that, XXX delivered. efforts. program through complete That XX

So XX, now. a we fine it's on be going to are the with where to race completion but we're

Douglas Harned

what mean your margins more you And between the what in grows Columbia-class it over you then you work the . -- how Virginia-class? now mix becoming is versus I of when and the at and how more can Columbia-class right describe as And is look Columbia-class time? submarines, think important. affecting --

Christopher Kastner

we provide perform Columbia only really does dictate of in of VCS Welll, and on It and as Newport going you XX% and class, how good News importance build XX% Newport program boat, in the the source that But the know, grow is long News to -- growth. sterns. a to will run. we at the how bowls

going News. dictate work. margin forward is high in Columbia-class priority won't it The It's but really Newport work, important performance

Operator

Bank next from from America. of comes question Our Ron Epstein

Unknown Analyst

reach able on retention Ron. the And where . now? you that of guys are more [indiscernible] give have to expect -- -- Would efficiency. they new color give color you is rates also to the when for more all would This for to you on you hires optimal them

Christopher Kastner

Yes.

So We're we're we beating -- don't our year. for retention forecast meeting rates. the provide hiring actually our

are we good there. So where with we feel

your second was -- again, second sorry? I'm The what question

Unknown Analyst

long hires working? for How new the fully

Christopher Kastner

Yes.

talk we years, that increase years, we which in shipbuilding, we X of some with X News on can talent. of some to accelerate we to will Newport the digital think tools. digital have generally stuff So about our time the X of think interesting the interesting going But is X we things -- and

Unknown Analyst

it. Got

then one And too. question, other Okay.

For supplemental . Funding other $X the it? the do guys you $X also then from And seeing ] and can [ it? White The OCUS that House through? for Are flow you billion expect the billion. you size Or

Christopher Kastner

of to opening in of opening think It's eventually development, We could absolutely in We through. here, OCUS that Australia. actually but supply flow to areas short -- next like financially, really an right? as important it's expect is and We We in markets support. funds material the an infrastructure it chain markets, Yes. very assessment, flow U.K. see the not term important year. us. workforce

We're following methodical absolutely how look standpoint, in the they we it's think the this, more but that a to them But line But taking are really and Navy's that to to. from now we're They forward it's medium steps to ready long-term through for of ensure we're lead support standing prepared on sure we're a this. being opportunity. top it. to very make need

Operator

comes question from Research. from George Our next Shapiro Shapiro

George Shapiro

I next but year, you reduced for for flow increased this year. your cash it Chris, guess free

Because So timing that what was you really occur? left that X-year obviously, the caused the . number a to same.

Christopher Kastner

was just it's -- I George. just timing, Yes.

you from let It's I'll Tom on you team hard slowing for to know, working capital. received us. into working The get go very we're you expect. time, As sooner than time in specifics. is focus a

Thomas Stiehle

Yes.

the collections as how cash the our and and lift we adds So the midpoint the of applies specifically of We've this top as that and performance we've algorithm, customer flow of is to just kind million with for ourselves the to how positive. cash free That's year. and dollars strategy seen through come Mission the some they're that the at on what our of so a in worked that contract, on year from was the million we've confidence the a COVID set. couple good is hitting to the end in repay right now performing went an XXXX, in through well us. MBS, that $XXX milestones Also line both here Technologies, $XXX

is the year year end pretty from consistent As I've the midyear been our target, light X-year next billion. guiding through of on this $X.X

So XX%. retention I COVID. the with the of piece we is A this bought that, as said, up year

So and anyway just timing that was between 'XX 'XX.

If [ between you ] $XXX it's from year now $XXX million, noticed the $X.X and X million next still now billion.

I think going this of out get year. ahead want that opportunity we there's tailwinds forward, didn't kind ourselves. and against but we as sets finish to of

the So billion we target maintained here. $X.X

George Shapiro

Okay.

X.X% to follow the quarter just And I just got mean, fourth has to the get your the margins looks quarter about. Doug Okay. be that in it about asked specifically, to had guide. up of like fourth the low end to

the Now to quarter normal given in the the from fourth assume would going Newport the milestones be is fourth biggest News. quarter. jump at I in

Thomas Stiehle

I go. for important all pathway us XXX into each to get to the X as at we're the Chris are the on of kind ready think watching remaining said the is of milestones X here. them and range,

transfer of to ship of it's the to before the receded the final beginning float XXX think for the tasks. ship approving I and we're waiting line LPD-XX, the see just inServ, of year up we've a year. race that that saying . The that. And should since been off the then end just ship. the

pretty as of happens the they year. milestones forward X end out Those beginning significant go as are play in December, next whether we the that of at So December, here.

we've rates the maybe high. on quarters. performance settling as we've performance think of then EPA of over couple some sets adjustments little seen there, I consistent a last And the just seen opportunity

And -- big of to I 'XX we're in think off surprise shipbuilding hot guidance this kind So out. to quarters. going [indiscernible] started for that heavy 'XX think reaffirming first that a for for a be there quarter on the is between right of play our couple I on isn't QX opposite in lane and we will we're us. profitability when was now us really the But

Operator

comes question next Our Seifman today from from JPMorgan. Seth

Seth Seifman

talk saw that guide Ingalls revenue little I with -- if the you bit maybe so for over growth could the more So I guys a wonder shipbuilding. time at -- increased about opportunity on to looks maybe especially now with you be for DDG, can extent versus maybe ago? . the latest helpful profile how to And of several for the margin which the multiyears growth months the mix. that that And kind

Christopher Kastner

Yes. for can here. then and This if in what of Ingalls' the rates really business is and and top growth complete the the an I'll we're next Ingalls creates need shipbuilding we stable few down solidifies at start, a by But line division, and Chris. DDG-XX base point years is Mission bit Tom to a award from seeing of don't standpoint, give but we inflection very Technologies. a both

it. in until supply Well, I before the of They're has place. recompetes, that. winning we're we end by the Technologies very driven The up I think converting just don't all It's shipbuilding. that of we is labor. can communicate to And they're then Mission chain shown year markets in strong. wait are business, want get the in think new We'll and front stuff. in converting a But pretty of the growth good stabilization

of bit about end the a we get to because We're the lot inflection of want a point. talk going going to strong, we we forward. after growth it's but yes, about year year So to close pretty an that the positive more feel

Thomas Stiehle

that, NSC-XX. back there. happy of I'm NSC, the at I'm on Ingalls too. hop I'll seeing what pretty with delivered down Seth, we

down programs time there's sustain X%, the they contract a now just the in We've there. more there. that X way most with DDGs, DDG still itself that portfolio set ship received We've about major X-plus things the on more talked X is the get if frame, on recently there. X seen can August So X percent [indiscernible] potentially and how

going and line can and they planning, decade, them production to really down consistent So drive what in know from next perspective, there. they're resource that's that a the they performance material a help up labor building over

X,XXX the Also seen a the maturation of program. that, on top XXXX of we've DDG program,

X we put base first for All X first a we good contract an them employ So the years there next to X will contract, of ships workforce monetization XX-month to the going put earlier that's be to those there, through X the over process. down XX- this the -- year. on too. of on And the monetization

So to I sunsetting good NSC guidance we've going for see X% healthiness had the Ingalls even XXXX with the . forward. hit program Yes. through that and

Operator

Our next Myles question [Operator from today Walton comes from Instructions] Wolfe Research.

Unknown Analyst

This is actually Emily on for Myles.

So margin it question. -- shipbuilding Another

color was the 'XX So Any a some are Is great. for or thanks this for to able be that additional of would leveling . on quarter-to-quarter? wondering, half cadence towards the any either all on But color year you XXXX. I do quarterly there skew of at point?

Thomas Stiehle

Yes.

to take premature. look we work a plans get this QX, the milestones, retention, we improvement. that ahead but ourselves that to our like management Once further think, planning We the want we and would I but extra end seems . If that really shape, thesis some not process to into think incremental through same the the a Obviously, mentioned anticipate those getting just solidified, does, kind margin for it's But here. COVID training, at right earlier change end get maintain they we I it's have which that we we we the of to bring be, we've I talked about internal year, of still to hiring, of just at now. QX. here material and So the could see of the expectation Board myself. on I'd and like wouldn't into We behind final hit in us to year, trickle us where energy at tentative stabilized. it little 'XX the putting want the of improved. of get have with It's it actual

But of into portfolio the workforce the There's of and the for of positiveness the EACs the follow-on shipbuilding. going the of to less of kind a would of lot anticipation rework, that here. and existing schedule ships I increased extensions. maturation anticipate that years grow have rollover

top some talked going about business. still we about we work technology, go have the additional more products be fantastic to Mission XX% higher there. little the on and A get that cost there. we able to the be that's bit more growth our a how -- we on we've more we fixed to On margins -- some have bit little should us and and We've should in achieved just seen able services, of Technologies what and side, scaling line. price do a employ IP have premium what that which put side. bid technology, on instead

improvement an margin. year. in expect next would the you of I the So in at shape And the we'll QX give call February,

Unknown Shareholder

follow-up. Sounds good, Tom. quick And then one

Navy We been of plan I know submarine customer on for but it's more also to side. well lines time anything from hard pretty [indiscernible] surface and getting it's side. a specifically on then know has cycle, but up, it's sort carrier visibility something So the Navy those all the you maintenance. that good pop drums about and a the on surprise, the sometimes the side, about maintenance the been the about for long any have time,

Christopher Kastner

Yes.

real consistent Chris. fairly revenue surprise Emily, standpoint. maintenance So from don't News. from pop-ups it's We expect we a expect at maintenance Newport

At participate maintenance. other It's doing be we're in now, Ingalls, right on potentially really not upgrades. the it's stuff we'll forecast work we than if But opportunistic which we DDG-XXXX, their in. see is that not could

Operator

Our Cowen. from from last Khanna question TD comes Gautam today

Gautam Khanna

in give confidence on quarter. you on skew? that quarter it very the kind delivered a framework that what curious -- On just could And A some to late us quick the this getting your of I'm if is LPD Is question. the XX, in sensitivity fourth level quarter. just how

Christopher Kastner

Yes.

as is will There on will -- We [indiscernible] XX. that through opportunities -- it a range the year have need sensitivity, a throes depend And middle I to final finish delivered. the the subsequent get approved Gautam, the delivery. risk to we come our the from But it to remains profile. and to adjust get trials, and get LPD on much is you. how some of risk towards be through you a in XX lot on know, we flow don't that for tend as end in standpoint. the final race as we tend obviously, of So, get EAC then specific to right ship work we an

Gautam Khanna

Got you.

obviously. Would range the for it implied QX pretty Because range, shipbuilding. that bounds a is implied wide argue Okay. that shipbuilding you risk? margin That's

Christopher Kastner

those Yes, I lot a variables. to There's XX into is comment of range, that want go that. of that oneX LPD Gautam, don't on variables

Gautam Khanna

Okay. guys And labor the margin increase on a what realistic is or you like just an last kind a have what would scenario? that shipbuilding of over wanted on, given the to rate in be of get appropriate faced your scenario year, challenges all head next couple sense good years,

are XX we a mean, significant next in we more talking XX, Are shipbuilding? step-up talking year like basis points? I

Christopher Kastner

Yes.

specifics our year-end through close you and So call. premature. we're on end then we in get on We'll give how information improvement see it's call. year, think we'll I not improvement. just on continue I But to a going give that strong, do of -- to XXXX. the Let's year-end expect give bit the We the

Operator

questions There at this time. are further no

call the So closing any I to Mr. to would hand remarks. Kastner like for back now

Christopher Kastner

the on us joining for call. Thanks Sure.

New to that we'll Before York. like an we note hosting wrap Day be in XX on Investor March up, I'd

for So and joining we'll again for HII us be call. the lookout on on Thanks today's information. in more interest your

Operator

very conference today's you joining. for much Thank call. That concludes

day. a your great disconnect now rest your may You of lines. Have

Huntington Ingalls Industries (HII) 2 Nov 232023 Q3 Earnings call transcript