Huntington Ingalls Industries, Inc.

“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.”

“Our Ingalls segment is located in Pascagoula, Mississippi on 800 acres along the Pascagoula River.”

“Our Newport News shipyard is located on approximately 550 acres near the mouth of the James River, which adjoins the Chesapeake Bay.”

“We are a design agent for, and one of only two companies that constructs, Arleigh Burke class guided missile destroyers ("DDG"), a class of surface combatant. We have delivered 36 Arleigh Burke class (DDG 51) destroyers to the U.S. Navy”

“We are the sole builder of amphibious assault ships and one of two builders of surface combatants for the U.S. Navy.”

“We continue to be the exclusive prime contractor for nuclear aircraft carrier refueling and complex overhaul ("RCOH").”

“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”

“In 2025, we reached agreement with the U.S. Coast Guard to terminate production and delivery of the 11th and final ship.”

“We are one of only two companies in the United States currently capable of designing and building nuclear-powered submarines for the U.S. Navy. Newport News has delivered 65 submarines to the U.S. Navy since 1960, comprised of 51 fast attack and 14 ballistic missile submarines.”

“Ingalls$3,078 $2,767 $2,752 $311 11 %$15 1 % Newport News6,507 5,969 6,133 538 9 %(164)(3)% Mission Technologies3,044 2,937 2,699 107 4 %238 9 % Intersegment eliminations(145)(138)(130)(7)(5)%(8)(6)% Sales and service revenues$12,484 $11,535 $11,454 $949 8 %$81 1 %”

“Approximately 45% of our employees are covered by a total of 13 collective bargaining agreements.”

“high barriers to entry due to required nuclear expertise, position us well for RCOH contract awards on the remaining Nimitz class (CVN 68) carriers”

“We have a teaming agreement with Electric Boat Corporation ("Electric Boat"), a division of General Dynamics Corporation”

“Overall, the fiscal year 2026 NDAA authorizes $900.6 billion in national security funding. The legislation supports our shipbuilding priorities with a total authorization of $26 billion for shipbuilding programs”

“we believe the ten Nimitz class (CVN 68) carriers we delivered that are currently in active service, as well as Gerald R. Ford class (CVN 78) aircraft carriers, present significant opportunities for inactivation contracts as they reach the end of their lifespans.”

“Each RCOH takes nearly four years to complete, with the work accounting for approximately 35% of all maintenance and modernization during an aircraft carrier's 50 year service life.”

“Our supply chain has been impacted further by delivery delays, raw materials shortages, and price increases caused by continued inflationary pressures.”

“In November 2024, the Company issued $500 million aggregate principal amount of 5.353% senior notes due 2030 and $500 million aggregate principal amount of 5.749% senior notes due 2035.”

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

“We cannot predict how long these challenges will continue, whether these challenges will change over time, or whether our actions to address these challenges will be successful.”

“As of December 31, 2025, goodwill and purchased intangible assets from prior business acquisitions accounted for approximately 21% and 5%, respectively, of our total assets.”

“The U.S. Government generally has the ability to terminate contracts, in whole or in part, with little or no prior notice, for convenience or for default based upon performance.”

“Changes in our assumptions, circumstances, or estimates, and the inability to recover increased cost growth have in the past had, and may in the future have, a material adverse effect on our financial position, results of operations, or cash flows.”

“we may not be successful in preventing or mitigating an attack that could have a material adverse effect on us, and the costs related to cyber or other security threats or disruptions may not be fully insured or indemnified by other means.”

“We utilize artificial intelligence, which could expose us to liability, as well as regulatory, competition, reputational, or other risks, or otherwise adversely affect our business.”

“Events impacting waterways and bodies of water used for transporting or testing our ships can cause schedule delays under our contracts with the U.S. Navy and the U.S. Coast Guard.”

“The named plaintiffs generally allege that the defendant companies have adhered to a “gentlemen’s agreement” that prohibits any defendant from actively recruiting naval engineers from other defendants.”

“The costs to resolve cases during the years ended December 31, 2025, 2024, and 2023 were not material individually or in the aggregate.”

“In 2024, the Company identified certain quality issues involving noncompliance with welding procedures at Newport News.”