HII - Earnings call transcript Q3 2024 | Huntington Ingalls Industries, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Third Quarter 2024 HII Earnings Conference Call. [Operator Instructions] Please be advised that today's conference 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

good and operator, you, morning, everyone. Thank the to HII Third Call. Conference XXXX Quarter Welcome today's forward-looking uncertainties that estimates discussed this information call Matters on time the constitute company's based company's of involve available at the regarding outlook, statements, risks reflect and and call. judgment on the our including our These cause to materially. actual and risks may differ results uncertainties

Additional the company's and information press today's release regarding these in factors filings. is contained SEC

to certain non-GAAP measures. We also refer will financial

measures, Relations GAAP see measures, are ir.hii.com. including our For that reconciliations this the website additional disclosures these accompany comparable slides about available non-GAAP to on page at please webcast, which the Investor of

On the the to Chris. Vice Executive Executive President Chief call and Chief call and over I today turn Chris President Financial and now Stiehle, Kastner, Officer; Tom Officer. are will

Christopher Kastner

thank the guidance announced and Earlier Christie, call, quarter our you updated released Thanks, joining everyone. third year. for we today, results for the and

I Technologies protect most employees ships solve in for thank to the our Before to all-domain the our want division. national get the security of some shipyards It HII XX,XXX challenges our in pressing is mission within creating most solutions nation, of the related world. I technical peace to powerful and service our freedom our and deliver to customers At advantage to our ships build is and HII, results, Mission who the clear. who around

Now for the results.

was shipbuilding guidance $X.XX of and $X.XX, billion year Third quarter a revenue Technologies approximately full from share the updated $X.XX billion billion, Mission to revenue revenue for to down per our $X.X year earnings billion. $X.X range guidance ago. was a and We to our $X.X

and cash the guidance to $XXX highlights to prior updates providing surrounding margin shipbuilding operational changes. more XXXX revised XXXX provide a quarter's to $X to million. our updated performance to guidance discussion our guidance milestone X% some detailed X% division flow and I'll also We free and

XXX, XX% compartments SSN Navy test XX final XX are government the module to and over the phase. the shipped turned ship of Kennedy, Utah, been of into During is Virginia-class ship's of team. submarine Newport the have News the over all the turned turnover progressing systems combat on the and quarter, to CVN and test

of customer-driven off made launch being early due visibility quarter is the second billion multi-ship Aegis award change and incorporation LPD moved prior DDG Ingalls. that float is hypersonic $X.X launch. the the to XX to warships, come. Shipbuilding, a strong series ahead, Combining milestone of XXXX XXX DDG XXXX revenue loadout X of Ingalls Ted to SSN progress XXX we destroyer, Harrisburg, this on Arkansas Light-off procurement years which provides with design of Looking the to some in amphibious At Eagle including in of a received of missile solid for requires achievements structure the October, III ZumWalt X and tubes the Flight Stevens, of at a

in wins and contract results electronic of the contract a also with third a Air services year-to-date Technologies Mission funded billion performance book-to-bill XX% and $X.X technical totaling warfare value, growth U.S. reflect support engineering of XXXX provide over quarter, to $XX Mission several the had Technologies revenue third for including billion potential X.Xx. Our at contract strong Force. quarter significant

for two ended U.S. billion, with to also The task single results issues Further Mission awarded HII's is and emerging new for and single-award currently government national guidance a technology, approximately division. contract services expectations $XXX IT Weapon and backlog and and award funded. the $X awarded the contract comms Technologies quarter indefinite million modernize networks, to delivery to to federal development million indefinite $XX.X and support of is our ever $XX $XXX We year. largest a contract order billion Systems the which changes, Air government quantity Force of security U.S. billion have a sustainment. were impacted We third

with about First, Where are Starting the the based and structure be discussions the half cash based confident will uncertainty our Columbia-class Navy we VI we discussions reached an this an submarines of agreement timing on timing Virginia-class agreement Block XXXX. for second constructive of and flow agreement. that and award. assumptions partner, and continue, fall, of reach our in and updated expected that have on we some profitability emerged uncertain Block V to

accelerated meet Navy. to to yielding continue our investments pursue needs greater contracting workforce, goal schedules are innovative in and that the urgent approaches that the We investments incentivize critical facilities program of These the technology. of

necessitated program our subsequent chain ship revenue clauses, significant yards cost not under of of critical material inefficiency, some in They anticipate affects did assumptions of critical our chain training the supply material is and and loss to has plans the labor retirements and ships repeating the It cost. production at labor late experience teams, which requirements to shipbuilding risk-limiting rework, significant experienced in that and COVID. mitigating from currently targets construction the levels inexperience This long-term is the experience of reduction chain labor not economy. inflation to broader program supervision. contracts, were a all have both prior alignment their leads our These performance disruption This deliveries The by risk in due touch delivery us and anticipate look supply negotiated bears early renewed improvement to through of labor our not in and or material achieved. and delivery new cases material Second, to schedules. shipbuilders. supply of reduced visibility, Late and nearly the and our and within provide schedules. which combination workforce delays and did been the

said, still I the at terms majority are of As underway the now Newport the contracts work of governing these News.

team and to of all at my be and HII. ships me, Let clear, are delays me increases these on cost us unacceptable

the points, three ensure reality. in that are thousands emphasize, as their to of on execute workforce. backlog to to current shipbuilding the fundamentals highly focus and these continue our I mentorship we generation regarding to Looking of I'll shipbuilders of and on we ahead improve ships, actions example ahead, skilled Further, and talent starting transition actions want context finish Navy develop and us. the to a them have we economic the to focus we delivered take committed of invaluable manufacturing decisive performance, get ships with to to of new our on demand and negotiated

are leadership first-time safely, that plate executes our making in so deck in proficiency and training We and development, with significant investments quality. craft efficiently

learning regional a augmented reality and In craft training new accelerate allowing partnership the pipeline, capacity, to cells pipeline virtual hires grown its within base, pre-hire and X X% up from Shipbuilding training of hire are strategies only Foreman with learning support craft years the industrial Newport ago. Our News has Roads training centers, innovative Hampton from XX% helping teams. the submarine to

work on to and how Also throughput with put at meaningful Newport maturing improvement teams this, simplifying In every system on spend our to improve trades programs News, to day. and have we common standardizing their where by all we focused execution. seen deploying the a across more we plate remain operating first deck they by and piloted frontline people their time enabling leaders

workforce. schedules. operating and mitigate to We faster find across are to the their improve delivery near-term infrastructure, utilizing data ship supply long-term and opportunity all and assembly to solutions investing our in improvements delays is to base areas impacts we while Scaling production also analytics projects pursue AI our system material to best pilot throughput structural

Second, and supply chain supplier development.

We are Navy, by the funding, chain working performance. industrial-based submarine improve with supply fueled to

to helping build excellence high-risk sequence for we manufacturing improve throughput critical of goal accelerate investing in to and schedule cost the shipyards, new, parts. for these are also the With centers in centralized predictability of items

new additional to X.X to Third, base workforce takes which work are helps in the to capacity, digital new there rebuild technologies, additive we engineering. outsourcing and where investing and work additional and the including suppliers, Industry manufacturing industrial is

plan over increase As that we in outsourcing in an hours X XX% over example, and to XXXX by XXXX. are million

these to manufacturing necessary committed are build the We to growing ships. ecosystem

divisions and competitive costs element our Additionally, meet ensure remain evaluation to all review overhead thorough costs our customer support a that and cost each we reviewing includes supports of our This objectives. requirements. costs are three enterprise-wide to across

capital fashion improving similar ensuring throughput. and focus we capital We on our are a in evaluating

While our the of at capital included spend target our reduced we have contracting XXXX, X% we cash future the the XXXX, XXXX and through a reflect are structure and expenditure timing flow planned our and previous activity. plans XXXX XXXX of forecast uncertainty of to evaluating sales for from thoroughly capital

Turning to Washington.

While operates under the the the engage on to December, with appropriate the forward we continue resolution path submarine continuing on a Navy contracts. most into government

of savings HII contract delivers has customer. As procurement and the award the demonstrated equitable reaching for with of type multi-ship recent agreement returns record company sustainable on a amphibious this ships, the that to for

these closing, points. call I Tom, over primary the emphasize to before In turn want I to

on confident will are schedule execute the improve. we right cost fundamentals to and transition on we post-COVID and on predictability current performance to we And backlog. First, these once our focused are things contracts, the

work we at outstanding continue and with Second, until shipbuilding, fair Navy contract get the environment, we on schedule to current reflects the cost that will awards complete. in we a this agreement expect and our operating

to has through taking in firmly Finally, We the unprecedented products XX% to to Tom? ships. work we enable will long-term us value our our changed. we confident believe we HII now, are and the margins, not performance mid- equation for stabilize There's continue X% remain these of services. and And long-term as actions for demand shipbuilding to guidance

Thomas Stiehle

morning. Thanks, Chris, and good

address Let me briefly start quarter third outlook. and updated our discussing first then I'll results, by our

this $XX driven X I income period income last in last of quarter Mission compared at to quarter our of billion, at by third Beginning This the third in to partially discuss Ingalls revenues Operating $X.X approximately Shipbuilding at revenue earnings For $XX the will consolidated to margin for the both moment. X.X% Shipbuilding, and operating quarter and presentation, offset million million our same in a compares release with Ingalls, the X.X% quarter the to decreased XX.X% by or Newport in more period was our from by morning Decreased XXXX, declines growth attributable X% more declines News the which issued the of Slide year. and Newport detail of News operating to on Technologies. was results largely refer decreased decreased both same detail, and please posted of website. year.

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

approximately $XXX million increased of end $XX.X period, Our the backlog quarter. in the the commitments at contractual to billion by bringing

approximately date, award XX, including the LHA recorded $X.X XX, value ships, amphibious for billion $XXX the we the in authorized LPD secure While million we did XX, at and four to in Ingalls the quarter XX just quarter.

will those We the time of grow awarded authorizations ships over values as see expand.

X. Slide by to million partially combatant or $XXX period Moving $XX primarily National year, volumes higher last the from lower Cutter the offset volume. Security Ingalls in quarter amphibious revenues ships driven in assault the by the decreased and surface of same Program, X.X% million

partially program were in in period $XX in adjustments lower by income year. the the and services was on support The News, primarily surface million submarine and same operating compared by naval $X.X program. $XX from submarine carriers, last driven and period X.X% assault combatants. from revenues At the operating due Virginia-class volumes the was lower to XX.X%, X.X% as amphibious same Columbia-class the year, of Ingalls decreases in Newport the aircraft cumulative quarter or down higher billion well volumes quarter as $XX nuclear to and offset million last performance million, on the ships margin respectively, primarily were

million, in operating Newport News in and compared $XX year X.X%, and respectively, to of X.X% prior $XX operating income period. quarter margin million was the the

million net included submarine Stennis unfavorable Block $XX C. XX. contract Doris $XX Virginia-class John Miller results XX CVN the complex USS X on totaling overhaul and million of adjustments million, $XX Enterprise of $XX the CVN and and two-carrier on News Newport on million the XX the CVN including cumulative program, refueling

around assumption As unfavorable not both Chris our achieved we as have change by improvements. these well were driven performance awards as the program as contract challenges performance described, adjustments in planned

During at in follow the than we weld quarter, publicly that previously welder did that News procedures disclosed reported fewer assessment not had Shipbuilding dozen to some determined welders our An two initial process. their issues Newport consistently were customer.

was warfare Mission Technologies, a We analysis determine of financial $XXX the due continue through quarter quarter warfare The to income million the higher joint Mission by the or third million X.X% the last Navy comprehensive the primarily as to from any and to investigation respectively, third driven of compared compared and were increases cyber and electronic $XX income X.X%, alongside nuclear At of operating $XX to million work X.X% quarter million volumes operating volumes, to primarily year. cyber Technologies for $XX extent well and space. of equity margin in and higher was impact. XXXX, space with and in ventures. environmental as revenues increased electronic

Mission the compared in results Mission for X.X% of third million approximately purchased amortization quarter. last in intangible quarter Technologies X.X% Third quarter of X.X% $XX assets. and margin to XXXX Technologies the EBITDA was of third quarter included

potential of represent Chris XXXX recompete revenue value, awards, XX.X% Mission Technologies This third and quarter across noted, in follows Technologies. has contract record billion strong Mission sales in entail $XX As with XXXX total operations wins Mission contract XX%. growth new Technologies service the multi-domain growth for nearly performance and very work over branches been which a of year-to-date XXXX.

by quarter. Net the quarter. Free in cash Cash in Turning expenditures $XXX $XX quarter $XXX plans other of post-retirement X. pension the was or to Cash Slide were to benefit X.X% the were generated our million million and flow $XX million. capital million was operations revenues. in contributions

in to provided to forecast our criteria. pension Pension-related numbers to related slides. XXXX cash flow measurement performance The of an update today's and subject are have appendix impacts and updated minimal. the We the XXXX quite year-end are outlook

As update fourth multiyear usual, to pension quarter in we call January. provide plan estimates of our on a

repurchases of with have year-to-date $XXX million, the to announce cash or we to the at a allocation share approximately to from our $X.XX X.X%. dividend approximately during quarterly of consistent shares at expectations, cost below in the we dividends of capital an initial XXX,XXX the priorities, bringing per repurchased With shares paid a our During the increase per or now of $XX to remainder an Yesterday, pleased of for Also million. year. quarter, cost million approximately we we share aggregate. XXX,XXX quarter, operations $XX cash $X.XX our increase total throttled were

Moving our $XX by outlook, on the We've to billion revenue Slide we million X.XX%. the to increased for and billion which updated margin $X.XX X. increased Technologies outlook to summarized to have now Mission year, $X.X on

$X.X the revenue to lower have we the billion. on shipbuilding, For of centered guidance at end range

the key in aiding News prior margin News revenue our and facilities, structural and anticipated modifications, challenges shipbuilding training, the of submarine contract focusing investments and Our portfolio. in contract to enterprise, shipbuilding and omnibus an Newport guidance capacity infrastructure, manufacturing awards receiving opportunities and across aids address throughput incorporating investments workforce, buildings, attrition Newport on and our tooling for additional across

will contracts. of While near-term that will rate construct timing volume key News those we enable the to receive the whether now and pursuit needed uncertain are overall of new confident performance, of awards we of portfolio and contracting remain we ultimately accelerate the contract the Newport of investments awards, full

contracting with achieve associated expectation, on not with a efficiencies Performance announced updated normal at to has aligned improved burn our Our rate progress current initial The workforce chain, and supply and guidance inexperience to time. impact reduced results performance conditions. to incremental trajectory a improvements capture learning curve for and production along improvement, the which, near-term working XXXX today consistent forecasted program performance with has delays outlook down cash. updated due our collect expectations and milestones, over also assumed reflect capital to ability the

year to the is for expectation X%. margin operating shipbuilding updated Our now X%

would progress the cash contract outlay million, structures free year inclusion for and as X well to contract sales. updated to been reduced our from guidance flow $XXX awards. new us anticipated to capture related has Our the Prior as milestones incentives of of between X.X% expenditure have is the X.X% allowed additional and that capital

We levels our work awards. withdrawing to of understanding expect cash more submarine to once able of free better to we X-year contracts a flow through free challenging are we portions are target. dynamic, normal flow cash this have of In our return current new light and the

to our for tax also have and XX%. has modest made rate interest for guidance, which items, operational declined the expected year, pension-related our we our updates Beyond expense outlook to

research increase tax resulting in of included for tax rate development quarter forecasted approximately prior effective rate by current and that tax in QX. results the third annual lower an for an and The years, driven is XX% credits

sheet. Turning X.Xx $X.X quarter billion XX-month modest We EBITDA. leverage and balance to net liquidity of approximately ended to the with of the trailing debt approximately

allocation unchanged, priorities of Our rating, share through shipyards, to including are capital our investment-grade commitment credit continued and in our dividend cash repurchases. thoughtful return excess growth investment the

a in billion be interest the Consistent given $X.X to business we other the to support would raised plan Proceeds months. $X.X general coming to normal our favorable in from quarter, third more and course considering purposes. the $X.X our Within for is corporate XXXX we paper par,t the revolver commercial $XXX rate billion and the still billion. of are used, expanded program million our $X notes with from senior and May environment, debt due new evaluation. issuance This of in redemption under billion

we on will Technologies across Further costs. reducing continued by units, structure the consolidation the more resources into comments business from division's support alignment competitiveness X business the recently on initiatives enhancing of growth. announced our previous down Mission This to cost long-term talent efficiency and portfolio, ongoing the while groups, focus simplifying operational key the around corporation, of efficient Chris' growth X

the assumption and continue increment we sensible Columbia shipbuilding next To that I address of urgent of omnibus innovative contract our to challenges the for guidance while solutions close, advocate discussed. submarines, industry reiterate we and will VCS a updated to removes agreement the for have near-term

and the Christie I'll throughput current to business challenges, to solutions our our the the call realities work manage address driving improvement and With the environment. that current Q&A. of that, turn to over and contract performance back operating through securing we shipyards, equitable capacity to continue are aggressively focus on will We in confident in expanding ability

Christie Thomas

Instructions] turn I [Operator Tom. you to it manage Thanks, Q&A. to Operator, over will the

Operator

first from [Operator TD line Instructions] is the with The question Gautam Cowen. Khanna of

Gautam Khanna

questions. are Tom, contracts couple existing get on submarine on contracts it was you an relief assumption implicit contingent that sounded -- mentioned like you'd A yard. of the that new in these signing

it how mind I'm I how so the of rate? you're that, cume booking curious assumption much at related ongoing negative this like And to in catch-up that mean, impacts So booking the already. News with Newport sounds

first I So rework, the catch-up then Wells much the will? second and -- hit to so incremental you else. established, to And is was what my someone how was one I'm already the for And curious it And then like related that's of then what guess if the that? relates question. I'll leave cume

Christopher Kastner

Gautam, impacting I'll I'll the then Okay. I'll in year, the deck XX-ship this to Tom -- performance can welds first We the two had and me issues the -- really quarter, the let start on this And execution ships. and the the handle had it. the really handle then Chris. on in relative But us. contract. plate on actually guidance the we and in question, assumption really is and for quarter, had we pre-COVID answer

what we're on into milestones program and from through roll into happened quarter through IV schedule, what helps these XXX And which really on major we forward. we're didn't up. test rework pre-COVID and critical going performance move up a in as illustrative XXX is creates And was I the into buttoning them finding have, milestones, just and Block impacts impact where and related unpredictability submarines, you're and the have that to having ships that buttoning some systems there's some you're entering going we unpredictability it this you these that. on the systems detail to expect of think the and encountered that's to we bit you nearing a little get and standpoint. largest And

News. said making really as it's contract, reset On think business we progress, in the not I of my XX about usual. good script. the is Newport the XX you in ship as And when were submarines, a portfolio This

the expect in. work operating that be to executed, we're the and a much just in it to and facility and the You supply can't this capacity base. labor especially simply industrial into in relative chain that put environment

to try contract to And the a right. we've very that technology hard sort it's and we're XX and unlocks those infrastructure working So the on labor in get been portfolio. working with investment of ships across that broad-based customer really

fair alternatives it. pretty So to But working still and in thought some that are of environment we're we're -- we in economic equitable outlook, it be were is reviewed, these that. close be not it's that It's the on being It's urgently agree but contract. I It's does schedules broad-based working we that going and we're represent can't ultimately, going going But to are reflect executed, and achieve. so that cost or to any when which just done. to can unpredictability, the it supporting keep it's good none in we're and going we on getting quarter through a review and the operating, in submarines to created that contract conversation. it's needed our to to and year, only us

So and guidance. that's happened and kind in the of what the quarter in year

two. appropriate to parse thought was going realize that it's the XX between tough it think between thought There that I that with don't performance to what the contract. it happen didn't. it's was ship to contract But we we in incentives and we would just we think I parse

let welds, process the the This Tom this really, we through I'll bound a to yard -- and issue, through issue working and a very issue. with talk a fraction smartly. come the conversation and small think closely march bit, But We're some fraction small in started customer On the welders impacted. him that is of is that and of that our financials. very of were the a welds the we'll about

that? to want on financials So Tom, do you the comment to related

Thomas Stiehle

Yes.

the out, have eventually a proceed front. financial the close investigations finality we as we'll that on through So and

in It's the deemed that initial that we be We could material. an taken Q. for not have just the It's on booking. not think unallowable cost It's identified that.

part, that close -- we innovative add, Chris commenting, that's I to as about I There's reason So that the and was out. information performance you that, And wouldn't we'll contract On the say more trying first would and plays what right out. negotiations. now. that. out have as It's to get just that against parse why we how ongoing new still optionality see in between approach, we'll have that's

for that Navy not comment -- through time So negotiate our ourselves it's just and this with to it's us partner. we're to appropriate as trying at work

Operator

question is line next from The the Melius Spingarn Robert of Research. with

Scott Mikus

is release This to Chris, Rob construction that remarks, talked wants and the funding to Scott opening Mikus greater build about workforce, now. support from for technology. pull SAS in boats press contracting that on and the started investments Navy facilities your and Spingarn. innovative incentivize you approaches higher infrastructure haven't the referring where the right Presumably, plan wages funding to you're

So on as your if could And I have another plan? just well. about that talk wondering follow-up then SAS on you the thoughts

Christopher Kastner

into plan of Well, kind has reported. I to too much the get broadly SAS detail. want

contract, Navy a very could supporting questions over good -- under balance although put alternatives. the that still we But the potentially don't is happening it with under best still kind forecast We it and SAS believe You to the workforce, Congress that review supported. alternatives a basics we was and in asking it's and I support infrastructure be hit get think on We're is plan because Navy issue that was idea still this smartest, on unlocks the that there. such at of and in technology. initiative it. an idea. discussions the It the we in this It year. of way was excellent investment the

Scott Mikus

group have from you think Virginia-class of but bipartisan shortfall senators it there to years. was also shortfall SAS costs on do a plan, $XX regarding the remotely will shortfall? funding that could mentioned close Congress billion letter And the does was significantly, Okay. shipbuilding in program there that $XX billion And over a understand be a the I X it next but the plugging increased you? support sound then

Christopher Kastner

Yes.

SAS the to more Congress The didn't of funding. of you going any need to additional obtain not was funding. comment I'm So on beauty ability

increase. and these was teams the I that hard We solution investment environment possible. equitable very our really working baseline sure that so for -- a me for as on to to appropriate it's fleet assets initial don't to the ships. soon comment that But XX contract is look, macroeconomic to can on come used to that, So are that current critical we also as make solution reflects these and the get enables need think and

Operator

line The of next the question Research. is Myles with Wolfe Walton from

Myles Walton

on out and to but given I of to $XXX much maybe flow tied color bit year. cash that much the I beyond do this give of cut could little want EAC, this. a it for year? was the do contract slipping that for the million cash you to the talk was And tied didn't know performance? us was hoping the you operating you the to specifically for How size I cut, hope can how of

Christopher Kastner

Yes.

So Tom let me start and can step in.

risk-adjust know, As you we everything. through we really -- think guidance, when we

contract new as really So within of as well both. the combination progress the yards. this a -- Both it's

to you I on Tom, if comment that? So know don't want further

Thomas Stiehle

Yes.

bit And right there. could had capital talked rising progress, milestones the this make and QX that obviously, a had was balance at the So where that timing, show we we you, on about the we you the the out talked sheet little a working guide. pathway about making QX to time, and in up progress We that major see mean minor milestones and of we unadjudicated normally of then I and and cash. that how recoveries and the change, the capital incentives performance the between And scenes. rate pick the And both recoveries we the our those, incentives, the and run orders, change performance, just of the margin things behind nature. up that's have, compositely and what REAs

and had of to kind year the out the contracting would our to we here. still plan. So QX, we And when beginning pathways of was with laid that at QX come the the about boats XX then investments able on the and guide innovative that pathway from the clearly be from in approach performance hit

The the that seen is obviously, awards. the end imminent year. look is we've XX right the twofold, backup all now, of Certainly do by not boats

enough the not to we've costs a the all now. us the all then right I the And and of are to balance progress we that. able be limiting the know on performance from timing is standpoint, fill but progress, right to been able sheet progress or think progress make that

to down thought year, million of $XXX take bring to we guidance the prudent that was So it $XXX to to at million. the we've beginning $XXX had million that X the

performance. a a awards, aspect. of piece it's that's the It's piece again, on timing So, a and the both

Obviously, There's cash. when shipbuilding year, to less X% to we a bring X% for this margin the X.X% in piece. margin down less to X.X% means

piece moves just to a 'XX was that a here. of it from of the 'XX. So piece where And There's operations it. of timing then a piece there's

So but it by prudent it's the guidance call and executed pushed a the saw as being through year, well able performance on contracting we this down of QX thought be as of bring when QX's to innovative call. end approach the on mix was the we headwinds some after to it,

Myles Walton

parts. hoping, Yes. moving timing think No, performance. obviously, timing or piece is it's could timing. the I just if perceive the an the is we that I'm becaus,e contract, and of I it's question, important some get if And

I it it would is so that X/X just Is is And not that Or high? to contract? related ask, high? the it

Christopher Kastner

Yes.

of active that. XX know you're thing just discussions construct to order in going I that know. ultimate don't question. submarines. just been ships of But the But going understand the we contract very We've am the it's is interesting to like. the asking. construct I they're what that confident about right those we on look split understand the now, don't I Myles, that So it's

-- So out break just a that you. for challenge it's to it's

Myles Walton

generation the is, Maybe business, the into business? in about thinking cash suggest so be framework this follow-up you'd terms question, generation what cash for the normalcy Okay. leave going of of next it of would that I'll year of

Christopher Kastner

Well, look of at We're couple quite it's flow performance at that. be couple proceed, all hard Myles. all for at us. are the indicators a capital. going that honestly, That's and transition our it's be to together, execute the for for -- I deck about we going how our the of that taking standpoint think we to years into story ship choppy of the going cash contracts. going how contract -- a years, We're new and those just from all be be a to expenses, and But to next how plate comes cash how relooking

Operator

of question line with next is Alembic from Global. the The Skibitski Pete

Peter Skibitski

on they they of did the for you I negative charges, it the -- guess, on the did change? Did Or the did that? just did that IV the force design request guys Block kind EAC? XXX, of pay Navy some

Christopher Kastner

Yes.

So could some But that done change, it's is not that the potentially. the when negotiated, that only related in Class work for It's of and to quarter. quarter that be to XXX, was the float There's gets before for off. in potentially both needed backed related it that boats issue upside design we there get that. up clearly to X change XXX. upside on a probably Part the some

Peter Skibitski

you feel And Okay. the seemed imminently on seems it last largely they're production there. going that then like like at call, in were guys And just it had Ingalls, improve a to at things now Ingalls. serial

attrition kind net meaningful Or in is or things direction just well? characterize, wondering So going pretty can categorize there if the Ingalls there? issues wrong as at of are why you I'm

Christopher Kastner

in the hard working have at green wrong wouldn't is to just Ingalls. do issues adjustments. with direction They and address that. now necessarily same to less right they're facing I manufacturing in say labor, Yes, the for they're very The opportunity issue Ingalls that positive is going everyone there's relative

significant either. positive don't significant see see You you negative but adjustments, don't

on got proceeding through issues fragile relative I their of So They're green confidence as in they're same we everyone they're the ourselves team. bundled the is But to macroeconomic environment, a fighting to of really protect and United making risk supply in It's fighting manufacturing the of contract labor, type and forward through need supply in a positive. reflect a our ensuring going the And representative their lot States current we was milestones inflation chain. of against contract programs. fragile very Ingalls chain. that

Ingalls So a of lot got yes, I in team. confidence

Operator

of The is next David with Barclays. from the question line Strauss

David Strauss

it are terms going? In helping money evidence point? actually any And you seeing at where this is that's industrial the at all being submarine of base the it's that this, money, thrown

Christopher Kastner

Yes.

a positive the there funding industrial And that developments distributed primarily money there but When talking done to in that industrial benefits base it. Congress you're base. new to as is it. the very from it and it happen takes get reap then problem to from well. benefit tooling, the about supply stuff we it and related It be doesn't really will So Navy while base, quickly. into -- the just from The potentially to buildings, benefits new flow gets the

So and investments. now through as investments our we're capacity, actually both as shipbuilding right Navy rebuilding the industrial base related well to expanding

development. think a it's positive very So I

going to it. to there's to we're just -- have I actually, a benefits come I going be from think It's bit patient. that be know

David Strauss

question, And as down guide of like I'm of just your for get still level to the maybe Is working working guessing to capital follow-up, X%. you X% a QX, after guess kind about I we X% that the X%? And think, a to Okay. capital working right do now side going capital. on around you're right? around of full implies things, something Myles' Tom, view year normal I

Thomas Stiehle

Yes.

can are we you right a a take by now, points going of end that basis I year. between the these the couple normal get of of XXX think, and and of calculate we'll we past upper back we the think to to obviously, do the out range cash There's are XXX X%'s in to get pre-COVID variability once flow. ships, range here, a XXX. X of ships I

that XX-XX 'XX end 'XX. As Chris be said, could by of months the into

The to deliveries. is work ourselves get The have we going balance We're these paid. We making sheet. So just as up and to the progress. that. make cost we're finish just through on to our will cash there come have ships

ships. grinding a the through just of of current it's us portfolio function So

David Strauss

Thank you. done. Well

Operator

the Bank. line is question Scott with next of Deutsche The Deuschle from

Scott Deuschle

to guide end the quarter. negative Tom, the shipbuilding seems low EACs margin imply the in more significantly fourth of

you there. So I guess risk see

is, So to just not than those if other And that now book EACs from what them? -- crystallizing going why my prevents submarine to negative you're contract? risk the guide question getting ship then the

Thomas Stiehle

for have against points the high how generally basis actuals XXX And you the the year. we calculate you there's that the to Obviously, XXX end. with end spread low gave of on between high still just little about where there points range volume and kind a you There's low X% depends lands. end that end can end, that. X% proceed. and it But of speaking, the we between So the of a for a for QX, QX, QX, the basis

We have the QX performance, of right? the the that, on about We paid CapEx incentives and both have making progress and in by I then milestones, getting year. kind making end those incentives. of incentives performance talked

and margin side, against ships finding footing the the watching on we're that we have a side, cash the now. the EACs right On here

we X%. between So the had had upside outcomes. we wanted to too, how all see We get the here proceeds dollars and as as you build an upside make through see, the did we wash you'd the VCS There's for And the -- that year out, close and sure out. flow investment appropriate that too. we'll just as we'll X% scripts, range we in Columbia investment to mentioned as it,

not the a as year-end So factor that's far closeout. as

Scott Deuschle

pre-COVID CVN rework phase, And that Okay. ship you Virginia Chris, the do I those deliver issues testing referenced it, you seeing IV Block to is missed in requirements Class? if but XXXX? sorry or expect XX in any like on And then, still

Christopher Kastner

Yes.

which predictability reorder have it, through than getting going on variability on program, in and an the fragility no the ships down chain in risk. you're But schedule there's test related you just We're the you by additional previously I talked when kind impacted supply to about the rework, my script. standpoint. from supply pre-COVID the go system rebuild when something referenced what those absolutely have an to arthritis back, or change breaks in to other the that We've going chain. of something all causes inflation and milestones breaks, really So the of and

change but that was completing challenge just a pre-COVID. any be to going now, to So XX ship negotiated no right it's -- done yes,

Operator

next The with line question Gursky of Citi. the Jason from is

Jason Gursky

managing Hey, just experienced much can't time labor be start And going Chris, curious contracts into kind labor. about you with more I'm kind this? this how about of going to wonder through of how try go just the new to down as period helpful go but if then and for uncertainty you're might of green managing on, the business some here help of slowing some convert your I of on you

So to I'm this of curious, see bad let to get restart? how done wake we how guys more methodically hit pause that work I'm of kind gets understand and kind up the button, that Is out this figure we trying just you could just idea? fixed. someday a just we and

Christopher Kastner

experience an not labor alignment which level balance because We're the going to we're we're anyone. up green good for for of delivered, question. backup it's now. these on bring to from I related required and strategy less, plan reliance good repositioning to we're point Well urgency we to ships the think Navy. doing reducing -- these that of inefficiency. labor. to there's we're and Where relative for actually so leads to don't And on first of while a But we're or out -- to to that's we're thank going And related you all you our to rework, on -- out just that's our the Jason, all, green labor. any hire more get can very year, ships hiring delivered right focus leads to Which experienced just And hiring. get our

structure and think will pace plans we're capital as aligning So cost our with we're our and investing investments and I bit, activity that we're don't which with forward. repositioning well, so that the aligning that of consider more what is what in down. really the those doing efficient going that workforce that a Jason, that's structure slowing you're cost be I we consider and

meet any anyone right? I your material then to have As not to it -- and chain hiring I said think have up you point. supply previously, do good So there, plan good a doesn't bring

how to be we in do think we disciplined very have I that.

in disciplined we think these have and hope. a as can't put ships be how contract contract sign really under I we We to well.

to We of of have increased the force, the environment, have understanding labor potential current supply happening our chain, our work that proficiency shipyard. we to for -- inflation understanding do the within the do and of all the that's macroeconomic fragility it

We're making it. it thinking we that thoughtful We're up about bring a good do it, you and about sure point. So we're responsibly.

Jason Gursky

Right.

Technologies, right? doing perform to I got well a question that. well, continues to nice Margins Okay. are I And appreciate then mean there. somebody's that growth. ask business Mission about

years backlog mix about and you next years bit a few the the just the chasing book-to-bill, outlook think a about us rates, what give book-to-bills, few that that the to just business? have have next and talk margins, pipeline Tech, just the the the for current of at Mission of you're maybe So for that you in little growth kind kind mosaic potential for there,

Christopher Kastner

year. Technologies Thank They've XX% doing grown last over is well. you. at Mission sure. very year-to-date Sure,

for of their better, they Some really are. outlook billion it's team wins. restructured portfolio. where The areas to $XX The their business and couldn't across just broadly the on business that big be think higher growth wins, focus

CXISR, or warfare, unmanned about You uncrewed think vehicles. electronic

rates at rates seems So that communicated pipeline is or they're years, to consistent focused. to team beyond The be over doing And forward I few even very them strong. growth The Day. next our look Investor with the the the well. very we growth performing

Technologies? So very Mission add yes, have very pleased you to on is Tom, well. with The Mission do anything executing Technologies. team

Thomas Stiehle

growth end on to of year this from the that been at year-to-date, 'XX. it's XX% back XX% No. hop seen we've top just rate on to there 'XX I mean the

we're to be leveraging So there, to there bids the X, I'm talent. a new efficient from by portfolio, excited We're that The X about aligning the that. rate strongest even the more from efficiency structure. units Chris on talked business leaders

or with doing shipbuilding. Align the how was our honing cost the we XXXX. excited the leverage and applications what tech construct and some synergies finding shipbuilding interfacing either we sets they're So get I'm continue year, more to grow set in division each they're there take opportunity additional into Technologies, acquisition out as business can to And opportunity and support and within and within Mission and the how there we're the

future. the I'm excited So about

thesis A year last XX% X with set of a it's to quarters higher that 'XX. XX% a of and over the additional relationships contracts, growth. eat engineering than type I But at customers X% orders And XX% there build and projection to offer portfolio our against lot when kind we here XXXX the the gave as mature X% X% margins up X% as and of and the that continue for know and XX% and the first contracts say, But kind we just hope X% with the products years to of be from of XX% sets up. We see contracts growth, from EBITDA for that to been just that. was EBITDA. I nice to initial to will has have couple a to services as of delivery out returns cost cost type solutions type that themselves to will more opportunity contracts BOA studies. those other into sets well, opportunity than higher and X%

avenues So I of of sets Day, with to funding. brings Investor that right line too. We at Australia different have sets it customer opportunity the about we well commercial new talked a think in and the excited front opportunity I'm it's contracting, And sets, go England office there over international, now. us, going to of

So on that's all hitting us. cylinders for

Operator

with Seth line question The next the from of is Seifman JPMorgan.

Seth Seifman

about we I shipyards medium-sized what a of think and outsourced all margins? into going forward? affects more elsewhere, money how think industrial do that to and returns restarting of outsourcing work you the kind kind of outsourcing? and percentage and cost going greater work wanted being when with when doing hiring mentioned ask, does mean this less. How estimates about that submarine more we kind And see into we for done base And the is the some of going of of it small- should

Christopher Kastner

Yes.

going of work profitability there's our seeing forward. a be outsourced premium related in a think the percentage And you're going that is greater impact There portfolio. to to current of our that. I

increase means That's I because those about forward Now which our industrial activity, when reflect going that ships protect those I will think to we ensuring which decisions. to outsource new outsource we've a means macroeconomic it base what talk made in partners significant But contracting the mean be going targets. those more, increases ships and on -- sure going about more. environment, make increase you're potential we the impact costs most of don't current future our I it's and on much these pretty we

will outsource to ensure the We protect more. new capacity shipbuilding. contracts need ourselves. we and that, expand need to these So do on we but we We'll

Thomas Stiehle

of end is I that there's X%. that that -- back take the from want on away shipbuilding, to going additional right, in on hiring, that the wouldn't growth reduce we've to retention. you going to given like X% hop The we're training, to be hiring, too. working backdrop I you the significantly to

a in right growth we the coming All that's for ships EAC the have not in inefficiency to where into again, volume inability for -- needs us that. be growing, can or the hire rolled that enough, the there out to be And schedule help inexperience as slight the And so that of of because and you month compared line capacity, maybe inefficiencies to makes the outsourcing maybe top So right? yard the don't pay just teams it well. out to the in the or into the sense. inefficiency of offset goes we benefit as It's of and yard, we'll quarters of have of the but here have more that things premium, do in-source lot there's some times them business here. pop All here they And we pop don't outsource. and like do capacity some of we painters a to that that construct of it. end that the times We'll can we and if maybe a here. we inside couple the on into at inexperience a have there's welders

I So see that but nothing positive. as

to centers, in that. and We're studying opportunity manufacturing there's that's operating things do centers, sets for of us like operating Also, the mix. always kind other

flat-footed of over X here, COVID not since kind of to successful that about in-source draw to at a kind at the see last like, team that the attrition pivoting we're years other answer is then that. talked and the here. hiring, and or that's we're X operating or outsource, We've So And new hey, We acquire, or of that, were to is we where with, more look where we supplement centers we and can hires. training, need things we that engagement either more team relationships now nature. our with

going play all mean forward. we're So the to we business how I see manage on in as that's trying

Seth Seifman

follow you of that years. maybe think, you on annual elevated kind I making X up, then shipbuilding X% were based that thought then mentioned And Okay. target, with that to X% over you investments guys the CapEx also growth. to the was

capital seems for without year, capital like next would about that and to going sort line of and is the plan this years? to X% much Now, top it spending, sure, maybe from come kind over forward, X% be the that that is it the thinking appropriate of still few productivity lighter capacity

Thomas Stiehle

right? 'XX, reduced guided wouldn't want of signal being to anyone absolutely, year. for next So from X% this X.X%. 'XX and the I We that's years with CapEx 'XX had the the for X 'XX, see

an going it see So Are an incremental and we managing to we're none is back, we we to be because something prudently approach? hedged kind more that omnibus XX of replan of none like that moved and plan. of approach XX-year we of out. do to globally still accordingly want moved for going work that the has plan out have. But our has work the year, boats we operating annual Every that

business, growing the and we have, the the the specific shipbuilding requirement, Navy opportunity equation have all the that's value plan, XX-year in the X-year XF, sets skills we with here. the that place So

that both needs and the environment headwinds trying chain marry sure said, make and that we the we to availability. labor with Chris As the business we're supply see the

finds home balance ferry and contracts fair going affordability to protects equitable profitability. that right trying the -- We're to and the between forward

the and the that going get and and just bit in But see to term, X% Day, part industry and of investment hold medium of X how has HII. year. changes HII play to a really and about term. all. year, to we does what going [indiscernible] we Investor was The walked trying that see talked CapEx So forward, through what and not X% as to business playing QX that's the equation throttled XX -- cash nothing to at we're for of footing little of back from That a the and not to short has be from performance for medium medium long changed a what right? we take long envisioned prudent the we position out in on this We the and changed term. thesis value the how remaining to at It rid cloudiness mean of out

Operator

of line the from Epstein Ron Bank is question next The America. of with

Ronald Epstein

around of I -- this, how through you think guys trying the see Day at this coming? Investor get back could still we've head when gave been I'm but your to kind you my outlook, not

Christopher Kastner

Yes.

question, a good -- So Ron. it's

You rates talked of performance look just we little pre-COVID a said Day, we how going. them had Day, to contracts. a were get bit medium- and long-term And to going where and a we Investor assumptions kind our we was about with were too to the through of And optimistic. Investor at through these it was take on growth broad business consistent thought get

to having with it. deal we're So

through shows an accounting good EACs have a have if every take and We our we issue we it up. very where roll process to quarter,

and we We're had with the negotiated have environment. current our reflect on to that knew pre-COVID. them So not it's we to contracts were challenges through contracts transition that get to these new these inconsistent grossly going just

Ronald Epstein

margins mean, year? talk next about Got should about then And it. it. your -- I we how that? into can you Got think

Christopher Kastner

Yes.

be boats. And XX-ship that looks FY like those over like, submarine the on -- the opportunities. awarded months, execution What in to couple And looks provide of the not incentives then year, together, contract we gets until going the think of it guidance of that. like whether going we look whether to they're the January it's our on a -- be that. of for what -- 'XX risks So end what construct how and of awarded are gets expectations separately next we're the going to reflection it that balance and execute the

factors are to that in those influence we'll XXXX, will don't -- information you that if add in And give I January. for have that? So guidance know anything out want Tom, the in you to it.

Thomas Stiehle

it. that going the be have to hit just going of function then of kind a new contract awards we performance You and these forward. It's

in whether the that. deck the internal your and the as off the we'll on it's is brought impacting the the our are now this mean, COVID, costs work range a kind I years of now. we lot or that here a X today, I think ships pre-COVID. a COVID was then now living heads you gave last effect that and supply perspective of I And years the real value and of the at hey, We're I each through of contract X on And parts real the labor on for ships, out years ran the I behind it's impacts mentioned have front performance give the couple mean boats and I X-X X-plus existing of how experience ship for say, higher of over question premature cumulative a day. labor percent chain. still inflation of of Those a with -- Investor throwing But guide of chain. lot of the the you tightening it's of or and So us. loss mentioned people to they during X the and we are plate impacts years market. the investment, Day, going we're kind and fragility of supply labor We the just about then get a horsepower, of right to understand kind the what's us. year. us of impacting to know ships in post-COVID COVID been to forward. that

couple on that through went rid of broke a bring contracts I the the get year, you new on that. that home alignment see new with We new ships. additional we awards. and And if on that ships that. a clauses, -- boats recall, find of equity that's new we that replacing we have would and hey, But about then start And of existing The So every on some of between portfolio returns transition cost And there's backstops and then affordability that. cranked profitability have period that the the here. the we get into the we think new color the down, bids. boats it's schedules portfolio more and got we program overlap we I

Ronald Epstein

just is the there I work to yards, one just Yes. paid a and then that? shipbuilders way as their until an I more then And they lot look had the went and mean, people with do you And Navy question. is tell in more commercial the pilots oversimplifying maybe shortage simple mean more I'm a with at they get more it the shortage -- as away. more me just and if this, airlines talented pilot the when you'll to experience? but example, a paying

Christopher Kastner

why Navy now. that That's with that. do the interesting to We've the for working results we're with to labor, Yes. promising relative increasing them on worked we're projects and some some seeing

seeing we're the it XX-ship submarine point. on We've some and good results. a already done So, to some up bringing It's at in Ron, something with address positive Navy closely working contract. you're we're very areas, Ingalls a

improve performance is that to one it lever we and you an So, oversimplification, but improve is improve predictability. can pull retention, think

Operator

line is question Vertical next with Sallard Robert of from Research. The the

Robert Stallard

contracts? sticking was unit very XX Chris, don't you Navy the Or cost had is it trying issue but the issue, sort the has gone that to here. the if prepared were elaborate basically are you here? could budgeted? exactly of what or pay per Is I versus what belabor the this up wondering ship is that get significantly to older I points potential pre-COVID What to on want on recompense

Christopher Kastner

Yes.

budget our ago, were So established scenario. it the baked fundamentally, into few the current for those really was boats years environment have the that -- didn't and budgets a

investment critical it go also under to those contract, significant contract. So required just that a But under these of that risk just kind -- for we a creates getting doesn't meet the creates risk the address in that's to it were submarine -- those business-as-usual if doesn't schedules. to put need

it's that asset somewhat just right We whenever for get to still that's that approved. it And create an do so, innovative approach. takes the you investment, longer be used something can think and

a our combination not need all but we unlock it's things to industrial of you which budget make the So enough, in investment mentioned, both to meet of the the also contract was schedules. that the it doesn't base

So this we of how challenge, so production. of holistically can it's also issue do bit budgeting we a kind accelerate submarine but little attack

Robert Stallard

Great. a looks things Technologies QX, for And Tom. stepped quick then there one just Mission reason a that? down. like in for Is it

Thomas Stiehle

the Yes. of We're that here is now timing. that out. being performance the on see way right piece conservative A we plays

Mission the and bottom -- line the -- on at if -- raising top noticed, both and but still we're you guide So Technologies. line the we're

just So They've in And about thought still it exceeded feeling good or We'll X-plus here. that. landed another they'd months out there's to of and met where no issue play let problem play or February. there. each I'm some I'm But we quarter, out. to news kind looking positive there's forward providing

Operator

Bernstein. Doug line of with The next question is the Barnet from

Michael Mccormick

This on for Doug. is Mike Mccormick

then hiring attrition you question And there helpful. Just I really in would a be on quarter the have talked kind update I that But goals. quarter? quick not you and I follow-up. about on of know outsourcing can labor. quick but just touch an the a sort of improving, said know last

Christopher Kastner

Yes.

improvement repositioning kind they That's experienced seen labor and and more in we're we're way tend hiring the on We to focusing haven't why less stay. market entry-level attrition. because of

change yes, So no meaningful attrition. in

Michael Mccormick

to I think and margin just on these on we expansion CVN color Okay. get margin expect any that sort through move And then of XX we we helpful, [indiscernible]? how should comments be on too. shifts the XX, profile? Should as any guess would Just XX, on as we about

Christopher Kastner

your margin of don't bit was we I on a give I but have margin what Mike, And question carriers. sorry, it profile think aircraft trouble understanding program. a I'm is, by

-- So I XX% transition a I'm not to we contracts. to confident it's it's something these business. just pre-COVID need We very still out X% just do do. But of

Operator

with Goldman Poponak line from next Sachs. is the Noah question of The

Noah Poponak

frame will pre-pandemic have financials? through no the Can contracts which you you timing flowing longer at your

Thomas Stiehle

So out. it transitions

here and 'XX just for 'XX the a end on awards the the in down the-- picked break destroyers, think bundle And of already for two. about construction tempo believe, long at in on pre-COVID. we boats I to you for I you FY 'XX on the XX% between work and FY next talking standpoint, saw QX. 'XX. XX% the the the that, here new Columbia We're that is RCH, then contract new of then pace up about Bill on Block the the 'XX, comes XX X 'XX, awards, XX the the we're and from last depending two got on XX Ingalls CVN saw I Block V post-COVID, on just lead and if of boats And

X, it's and X, that ramp more be here. post-COVID are to than years years couple as there'll switch we meaningfully of out So starts jobs X in it over awarded a pre-COVID there

pre. 'XX-'XX in So that's where frame the than we over. post swing more time But it's

Noah Poponak

Yes.

Okay.

because on had And I you're new little structurally about any amount, annual Tom, framing you I multiyear free a of then guess if pre-pandemic a flow not. and the had margins where it's you a pulled multiyear maybe contracts, is although there levels Okay. -- that while and insignificant a showing the a surprising referenced guess talked -- kind from guess number? recurring normalized annualized I just the you've cash timing, framework recurring for the it's CapEx are way can you're window lower by not just you toggle

there's free thinking So additional know I can about on don't provide you the how 'XX any color if cash? you're beyond

Thomas Stiehle

approach, good actuals, when we happening off how the the we $XXX $XXX pace think that. from the that here really hang we and about million the But I the can feel million to we table enough takes X-year $XXX first better that on and kind We to years, can. guide did if at about want the you think can. I right of now. thought get evaluate a it And upfront we area. see easily Yes, here. we've what's innovative to was and X on right are quick new this that gone the and now, to say, incremental a contracting take can close you and million, of see the hey, timing of just of and omnibus, can X-year We that. with it's $X so we'll on But now X give it is billion math just number run investments do $X.X billion the to the out the year like hold, old you

the higher adjusted So of it that could then awards or the on than we and and than have less it, could and performance. either be pace that depending tempo

near So we're our we that dear. and to hold going back. guide hold I mean

additional to times we cash flow there exceeded. and of the can been QX prudent in 'XX, and we that X labor far and guide. chain, calls, from piece it unlocking on for contracts on and dollars, awards, us and have you've or big will throughput would XX just plays this for the shipbuilding mentioned and about supply And cash investments look out good X-year -- started think right? the earlier kind here, call And more there. our landscape as what in missing kind comments guide from we value our XXXX XF, changed, At contract a it's time for that here break capacity as then to backlog, or We perspective tempo usual value they said, needs my assist of terms or those facilitate still bring for existing with investments of many throughput I the us awards we I existing the Chris we as of the of And contracting performance understand ability of work. years, investment QX we're at has course, the have The plan, which future. it's since new a over cash new next and -- back the each equity end year. a the the want business the as -- say us to talk the which it the run meet in exceed are value in funds -- and on -- of margin our still that not to HII this how was our XX-year thought pace take and yes, that I on as months, we then it revisit to modification 'XX we met we see is a

and improvement decent that the changing have just fairly to trajectory see and swinger a plays how it's So next recovery and And the the the quarters. going capacity couple of throughput performance, out over forward. on of we

Operator

questions further any to time. any at showing Kastner remarks. not over call the back hand like this for closing I I'm to now would Mr.

Christopher Kastner

performance for like cost continue work wrap To will through our structure focused operations, our believe participation it today. you. summarize shipbuilding higher again I'd actions on stabilize up we're remain throughput. as optimizing to to and Thank Sure. taking we today, ships. performance improving we that us these driving your and We Thanks interest to the enable and

Operator

today's conference conclude does That call.

disconnect. now You may

Huntington Ingalls Industries (HII) 31 Oct 242024 Q3 Earnings call transcript