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H Huntington Ingalls Industries News Release Contacts : Jerri Fuller Dickseski ( Media ) jerri.dickseski@hii-co.com 757-380-2341 Dwayne Blake ( Investors ) wayne.blake@hii-co.com 757-380-2104 Huntington Ingalls Industries Reports First Quarter 2021 Results Revenues were $ 2.3 billion in the quarter Operating margin was 6.5 % and segment operating margin was 8.4 % Diluted earnings per share was $ 3.68 Pension adjusted diluted earnings per share¹ was $ 3.56 Achieved record backlog of $ 48.8 billion NEWPORT NEWS , Va . ( May 6 , 2021 ) - Huntington Ingalls Industries ( NYSE : HII ) reported first quarter 2021 revenues of $ 2.3 billion , up less than 1 % from the first quarter of 2020 . Operating income in the quarter was $ 147 million and operating margin was 6.5 % , compared to $ 215 million and 9.5 % , respectively , in the first quarter of 2020. The decreases in operating income and operating margin were primarily the result of a less favorable operating FAS / CAS adjustment , partially offset by stronger segment operating results compared to the prior year . Segment operating income¹ in the quarter was $ 191 million and segment operating margin¹ was 8.4 % , compared to $ 156 million and 6.9 % , respectively , in the first quarter of 2020. The increases in segment operating income¹ and segment operating margin¹ were primarily the result of higher risk retirement at Ingalls Shipbuilding and improved performance at Technical Solutions . ¹Non - GAAP measure . See Exhibit B for definition and reconciliation . Net earnings in the quarter were $ 148 million , compared to $ 172 million in the first quarter of 2020. Diluted earnings per share in the quarter was $ 3.68 , compared to $ 4.23 in the same period of 2020. Excluding the impacts of pension , adjusted earnings per share¹ in the quarter was $ 3.56 , compared to $ 2.43 in the same period of 2020 . First quarter cash from operations was $ 43 million and free cash flow¹ was negative $ 16 million , compared to $ 68 million and $ 2 million , respectively , in the first quarter of 2020 . New contract awards in the quarter were approximately $ 5.3 billion , bringing total backlog to approximately $ 48.8 billion as of March 31 , 2021 . " We are pleased with first quarter results that demonstrate another quarter of consistent program execution , " said Mike Petters , HII's president and CEO . " We are well positioned to drive long - term value creation , with an unprecedented level of backlog in - hand and a workforce that has become more capable while working through the challenges posed by COVID - 19 . " Huntington Ingalls Industries 4101 Washington Ave. • Newport News , VA 23607 www.huntingtoningalls.com Page 1 of 13