Huntington Ingalls Industries, Inc.

Ladies and gentlemen, thank you for standing by and welcome to the first quarter 2025 HII Earnings Conference Call. At this time, all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, please press star, put it by one on your telephone keypad. If you change your mind, please press star, put it by two. Please be advised that Today's conference is being recorded. If you need further assistance, then please press star followed by zero. I would now like to hand the call over to Christy Thomas, Vice President of Investor Relations. Mrs. Thomas, you may begin.

Thank you, Operator, and good morning, everyone. Welcome to the HII first quarter 2025 conference call. Matters discussed on today's call that constitute forward-looking statements, including our estimates regarding the company's outlook, involve risks and uncertainties and reflect the company's judgment based on information available at the time of this call. These risks and uncertainties may cause our actual results to differ materially. Additional information regarding these factors is contained in today's press release and the company's SEC filings. we will also refer to certain non-GAAP financial measures. For additional disclosures about these non-GAAP measures, including reconciliations to comparable GAAP measures, please see the slides that accompany this webcast, which are available on the Investor Relations page of our website at ir.hii.com. On the call today are Chris Kastner, President and Chief Executive Officer, and Tom Steele, Executive Vice President and Chief Financial Officer. I will now turn the call over to Chris.

Thanks, Christy. Good morning, everyone, and thank you for joining the call. I'll start by providing an update on our 2025 operational initiatives, which include enhancing shipbuilding throughput, reducing costs, and securing new contract awards. In the first quarter, we made progress against our goal of improving shipbuilding throughput by 20% year over year. Ingalls is largely on plan and their production milestones remain unchanged. Newport News is modestly behind plan. Half of this variance is driven by the atypical weather we experienced in January and February. The most significant variance in Newport News resides with CVN 80. This is directly related to the late major equipment that is to be installed in the hull of the ship. These delays directly impact the construction approach and have limited the progress we can make on the ship. Once this equipment is received from our suppliers, which is scheduled throughout the summer, we anticipate an acceleration of progress. Additionally, for both shipyards, our outsourcing efforts continue, and we expect this to ramp throughout the year to support our throughput goals. Our South Carolina production facility is online and has already completed the first carrier unit for Newport News. The team remains focused on meeting our delivery schedules and is working with the Navy to identify additional initiatives that will accelerate scheduled performance. Turning to our cost reduction efforts, plans are in place, and we intend to reach our goal of $250 million in annualized cost reduction by year's end. We have an agreement on the Block 5 FY24 two-boat contract and will now turn our focus to the Block 6 and Columbia Bill 2 contracts. Also, I want to highlight how our strategic focus in 2025 aligns nicely with the administration's defense priorities. On April 9th, the Trump administration released two executive orders, modernizing defense acquisitions and spurring innovation in the defense industrial base and restoring America's maritime dominance. We are working with our customers on strengthening the industrial base and accelerating the transition of new capabilities to the warfighter. We are leaning into the use of other transaction authorities and are working with the Rapid Capabilities Office as a means to leverage new technologies. For example, in April, we delivered the first two Lionfish, small uncrewed undersea vehicles to the US Navy under a program that could scale to 200 vehicles. The program was developed in partnership with the US Navy and Defense Innovation Unit to accelerate adoption of dual use commercial technologies into U.S. Department of Defense programs. This quarter, we also announced that our Mission Technologies Division was selected to develop an open-architecture, high-energy laser counter drone system for the U.S. Army's Rapid Capabilities and Critical Technologies Office. HII will develop and test a high-energy laser prototype to acquire, track, and destroy small- to medium-sized unmanned aircraft systems. On the shipbuilding side of the business, we established an MOU with HD Hyundai Heavy Industries. The MOU provides a framework for us to jointly explore opportunities to collaborate on accelerating ship production in support of defense and commercial shipbuilding projects. Like our existing strategic relationship with UK-based Babcock International, we believe international partnerships are crucial to strengthening the allied industrial base. Given our core business, these strategic relationships position us to support initiatives that may result from the maritime executive order. Turning to the results, first quarter revenue was $2.7 billion and earnings per share was $3.79. We ended the first quarter with backlog of $48 billion, of which approximately $28 billion is currently funded. Now, let me share a few first quarter highlights. During the quarter at Ingalls Shipbuilding, we launched DDG 129 Jeremiah Denton, christened LPD 30 Harrisburg, and started fabrication of LPD 32 Philadelphia. At Newport News, CVN 79 Kennedy continued catapult testing and achieved 95% of compartments turned over to the Navy. And on the Virginia class program, we completed a major test event on the first boat of Block 5 SSN 802 Oklahoma. Also, at our recently acquired Newport News Charleston Operations, we retain 99% of the transitioning workforce, and these new shipbuilding team members are working on submarine and carrier units to help increase throughput at Newport News. We also celebrated the graduation of 115 apprentices during the apprentice school graduations at both shipyards. These graduates started the apprentice program during COVID, and we look forward to higher numbers of graduates in upcoming years following the expanded enrollment we've recently experienced. Turning to mission technologies, in addition to delivering the initial Line 5 small UUVs I mentioned earlier, we surpassed 700 Remus uncrewed underwater vehicles sold and delivered to 30 countries. Key winds of mission technologies in the quarter, in addition to the high-energy laser weapon system, included a contract to expand shipboard and shore-based training support for the U.S. Navy and coalition forces, a pilot training contract to support the nation's combat-ready force, an award from the U.S. Air Force to protect systems and software, and a task order to support global air and space operations. Turning to activities in Washington for a moment, while a full year continuing resolution for defense is unprecedented, we are pleased with the support provided for our shipbuilding programs, which supports our target of achieving more than $50 billion in new awards across 2025 and 2026. The full-year Continuing Appropriations and Extensions Act 2025 included funding for three Arleigh Burke-class surface combatants, one Virginia-class submarine, one San Antonio-class amphibious ship, and the RCOH for CBN 75. All note that we do not expect a material impact related to tariffs. We purchase the vast majority of our material domestically. We have long-term purchase agreements in place for material that may be impacted by tariffs. In summary, I'm encouraged by the results to date and the progress our team has made against the operational initiatives we've laid out. But I also know there's significant work to be done as we continue to execute for our customers and create value for our shareholders. Our outlook is unchanged. And over the next few years, as we execute on the pre-COVID contracts and transition into the post-COVID contracts, we will continue to reduce risk and align our portfolio baselines with the current environment. I fully expect top line growth with a forecast of $15 billion of revenue by 2030, as well as margin of free cash flow normalization in the years ahead. And now I'll turn the call over to Tom for some remarks on our financial performance. Tom?