HII raises quarterly dividend to $1.41 a share as earnings grow
Key Facts
HII's board approved an increase in the quarterly cash dividend to $1.41 a share, according to a statement issued on October 21, 2026, raising the payout to shareholders from the previous dividend. The company said the board-approved increase amounts to $0.03 a share in the declared quarterly dividend. The previous dividend was $1.38 a share, the level against which the company compared its latest decision in the announcement. The dividend decision followed a separate company announcement on the election of former chief executive Mike Petters to the board. The statement on Petters' return was issued on October 20, 2026, a day before the dividend increase was announced, making the announcements consecutive in October.
On financial performance, the company's results filed with the U.S. Securities and Exchange Commission showed revenue of $3.4 billion in the second quarter of 2026. Revenue grew 10.9% from the corresponding period a year earlier, according to the earnings statement submitted to the regulator. Diluted earnings per share for the same period were $5.27, among the quarterly figures preceding the board's cash dividend decision. Diluted earnings per share were $3.86 in the second quarter of 2025, according to the comparison in the earnings statement. At the end of June 2026, the company's total backlog stood at $57.3 billion, according to the same disclosure.
On liquidity, the company reported in its quarterly filing that free cash flow fell by $879 million year on year during the six months ended June 30, 2026. It attributed the decline primarily to an unfavorable change in trade working capital resulting from the timing of billings across its various programs. On operations, the company said in its presentation of its strategy to accelerate shipbuilding: "We are targeting a 15% year-on-year increase in productivity in 2026." The strategy includes recruiting, training and retaining a highly skilled workforce, among the steps the company outlined to increase the pace of work at its shipyards. HII employs about 45,000 people across 3 divisions, according to the company description in its October board announcement.
On naval contracts, the company announced on October 13, 2026, that its Newport News division had secured a contract with a base value of $56 million. The U.S. Navy awarded the contract to support engineering and design work related to shipbuilding under the AUKUS partnership, according to the company's statement on the agreement. The contract includes an option that, if exercised, would raise its total value to $91 million, with that amount remaining contingent on the option being exercised. That followed the company's announcement on September 29, 2026, that its Newport News division had won another contract worth $5,099,973,132. That contract covers the nuclear refueling and complex overhaul of the U.S. aircraft carrier Harry S. Truman, according to the contract award statement.
On expanding production, HII announced performance-based production agreements with Path Robotics and GrayMatter Robotics, according to its statement issued on August 6, 2026. Under those agreements, the company intends to award the two companies shipbuilding work worth up to $900 million in total. The company specified a period of up to 7 years for awarding the work covered by the agreements, according to the terms it outlined when announcing them. It made execution of the work contingent on meeting readiness and performance requirements, the conditions it set for the two partners under the announced production arrangements. The company described the value as work it intends to award worth "up to $900 million," with execution subject to the requirements specified in the agreements.
The next milestone in the company's financial disclosures will be the release of its third-quarter 2026 results, according to the date it set in a separate statement. HII said it would release those results on Thursday, October 29, following the board's announcement of the cash dividend increase during the same month. For eligibility for the declared dividend, the company specified shareholders of record at the close of business on November 27, 2026. The record date precedes the cash dividend payment date, according to the schedule accompanying the board's decision on the quarterly payout. The company set December 11, 2026, as the payment date for eligible shareholders, completing the announced schedule for this payout.