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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 ) dwayne.blake@hii-co.com 757-380-2104 Huntington Ingalls Industries Reports Second Quarter 2021 Results Revenues were $ 2.2 billion in the quarter Operating margin was 5.7 % and segment operating margin¹ was 7.6 % • Diluted earnings per share was $ 3.20 • Pension adjusted diluted earnings per share¹ was $ 3.05 NEWPORT NEWS , Va . ( Aug. 5 , 2021 ) - Huntington Ingalls Industries ( NYSE : HII ) reported second quarter 2021 revenues of $ 2.2 billion , up 10.1 % from the second quarter of 2020 . Operating income in the second quarter of 2021 was $ 128 million and operating margin was 5.7 % , compared to $ 57 million and 2.8 % , respectively , in the second quarter of 2020. The increases in operating income and operating margin were primarily the result of stronger segment operating results compared to the prior year , partially offset by a less favorable operating FAS / CAS adjustment . The prior year period included unfavorable segment operating income impacts related to Virginia - class submarine program performance and COVID - 19 . Segment operating income¹ in the second quarter of 2021 was $ 169 million and segment operating margin¹ was 7.6 % , compared to a segment operating loss of $ 5 million and ( 0.2 ) % , respectively , in the second quarter of 2020. The increases in segment operating income and segment operating margin¹ were primarily the result of the unfavorable segment operating income impacts related to Virginia - class submarine program performance and COVID - 19 in the prior year period . Net earnings in the second quarter of 2021 were $ 129 million , compared to $ 53 million in the second quarter of 2020. Diluted earnings per share in the second quarter of 2021 was $ 3.20 , compared to $ 1.30 in the same period of 2020. Excluding the impacts of pension , adjusted earnings per share¹ in the quarter was $ 3.05 , compared to $ ( 0.49 ) in the same period of 2020 . Second quarter cash from operations was $ 96 million and free cash flow¹ was $ 23 million , compared to $ 201 million and $ 126 million , respectively , in the second quarter of 2020 . New contract awards in the second quarter of 2021 were approximately $ 1.2 billion , bringing total backlog to approximately $ 47.7 billion as of June 30 , 2021 . " We are pleased with second quarter results that demonstrate another quarter of consistent program execution , " said Mike Petters , HII's president and CEO . " We recently announced the agreement to acquire Alion Science and Technology , which we believe is a perfect complement to our existing capabilities in the technology - driven defense solutions space . We believe Alion offers significant growth potential and represents an investment in capabilities that are critical to national security now and into the future and will generate significant value for our stakeholders over the long - term . " ¹Non - GAAP measure . See Exhibit B for definition and reconciliation . Huntington Ingalls Industries 4101 Washington Ave. • Newport News , VA 23607 www.huntingtoningalls.com Page 1 of 14