Total backlog increased to $49.4 billion as of September 30, 2024, compared to $48.1 billion as of December 31, 2023. This suggests continued demand for the company's services and products.

The value of new contract awards during the nine months ended September 30, 2024, was $9.8 billion, including awards for maintenance, advanced planning, and construction. This shows the ability to secure new business.

Capital expenditures are increasing compared to the past few years due to investments to expand shipbuilding capacity. This suggests a strategic focus on increasing production capabilities.

Cash provided by operating activities decreased significantly due to an unfavorable change in trade working capital driven by the timing of billings across programs. This indicates potential challenges in managing cash flow effectively.

Ingalls and Newport News experienced decreases in segment operating income, indicating potential operational or cost management issues in these key segments. Mission Technologies segment operating income increased.

During the third quarter, the Company identified certain quality issues involving noncompliance with welding procedures at Newport News. The Company has commenced an investigation and disclosed the matter to the U.S. Government. This indicates a potential operational challenge.

Macroeconomic factors have contributed, and we expect will continue to contribute, to increasing cost inflation for raw materials, components, supplies, and labor. This poses a risk to profitability.

During the third quarter, the Company identified certain quality issues involving noncompliance with welding procedures at Newport News. Based upon the early stage of the Company's investigation, the Company cannot at this time predict or reasonably estimate the outcome of this matter, including its financial impact.

Appropriations for the Federal government for fiscal year 2025 have yet to be finalized, and the U.S. Government is therefore currently operating under a Continuing Resolution ("CR").

For more than a century, our Ingalls Shipbuilding segment ("Ingalls") in Mississippi and Newport News Shipbuilding segment ("Newport News") in Virginia have built more ships in more ship classes than any other U.S. naval shipbuilder, making us America's largest shipbuilder.

Huntington Ingalls Industries, Inc. ("HII" or the "Company") is a global, all-domain defense partner, building and delivering the world's most powerful, survivable naval ships and technologies that safeguard America's seas, sky, land, space, and cyber.

Our Mission Technologies segment develops integrated technology solutions and products that enable today's connected, all-domain force.

General and administrative expenses for the nine months ended September 30, 2024, increased $28 million from the same period in 2023, primarily due to higher overhead costs.

The Company's net contract assets increased $497 million from December 31, 2023, to September 30, 2024, primarily as a result of the timing of billings across programs on certain U.S. Navy contracts.

During the third quarter, the Company identified certain quality issues involving noncompliance with welding procedures at Newport News. The Company is working with its U.S. Navy customer to evaluate the full extent of the matter and its potential impact on operations.

Our Mission Technologies segment provides a wide range of services and products, including command, control, computers, communications, cyber, intelligence, surveillance, and reconnaissance ("C5ISR") systems and operations; the application of Artificial Intelligence and machine learning to battlefield decisions.

For each of the three and nine months ended September 30, 2024, the Company's effective tax rate differed from the federal statutory corporate income tax rate of 21% primarily due to research and development tax credits for the current and prior periods.

Build guided missile destroyers designed for conducting anti-air, anti-submarine, anti-surface, and strike operations. The Aegis-equipped Arleigh Burke class (DDG 51) destroyers are the U.S. Navy's primary surface combatant, and have been constructed in variants, allowing technological advances during construction.

In January 2024, our board of directors authorized an increase in the stock repurchase program to $3.8 billion and an extension of the term to December 31, 2028.

The Company paid cash dividends totaling $154 million and $149 million for the nine months ended September 30, 2024 and 2023, respectively.

Capital expenditures are increasing compared to the past few years due to investments to expand our shipbuilding capacity.

Supports the national security mission of the Department of Energy ("DoE") through the management and operation of DoE sites, as well as the safe cleanup of legacy waste across the country.

We meet our clients' toughest nuclear and environmental challenges and are positioned to serve the growing commercial nuclear power plant decommissioning market.

The Company is involved in legal proceedings before various courts and administrative agencies, and is periodically subject to government examinations, inquiries and investigations.

The global geopolitical and economic environment continues to be impacted by uncertainty, heightened geopolitical tensions, and instability.

We continue to see uncertainty in the economy, our industry, and our company. Our customers and suppliers continue to face challenges, and our results for the three months ended September 30, 2024, have been adversely affected as we continue to experience significant challenges relating to labor availability, our supply chain, and inflation, among other challenges.

Appropriations for the Federal government for fiscal year 2025 have yet to be finalized, and the U.S. Government is therefore currently operating under a Continuing Resolution ("CR"), which funds government operations through December 20, 2024.