Huntington Ingalls Industries, Inc.

Ladies and gentlemen, thank you for standing by and welcome to the second quarter 2026 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. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. Please be advised that today's conference is being recorded. If you need further assistance, please press star 1 on your telephone keypad. I would now like to hand the call over to Christie Thomas, Vice President of Investor Relations. Mrs. Thomas, you may begin.

Thank you, Operator, and good morning, everyone. Welcome to the HII Second Quarter 2026 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, Brian Blanchette, Executive Vice President and President of Ingalls Shipbuilding, and Tom Stiehle, Executive Vice President and Chief Financial Officer. Now, I'll turn the call over to Chris.

Thanks, Christie. Good morning, everyone. This morning, we released our second quarter results, which reflect our continued focus and progress on increasing throughput and delivering ships and mission solutions to the nation's sailors, marines, and warfighters. I'll start today by providing the Q2 results, highlights from Newport News Shipbuilding and Mission Technologies, and an update on our operational initiatives. Brian Blanchette, President of Ingalls Shipbuilding, has joined me to discuss Ingalls updates, and then Tom will provide more details on our financial performance and outlook. Now, turning to our results, we reported second quarter sales of $3.4 billion and diluted earnings per share of $5.27. Shipbuilding sales were $2.7 billion, 16% ahead year-over-year, and reflect our fourth consecutive quarter of double-digit growth. Given this momentum and our plans to deliver five ships over the next year, we are raising our 2026 shipbuilding revenue guidance to between $10.2 and $10.4 billion, and our 2026 shipbuilding margin guidance to between 6 and 6.5%. At the same time, customer demand for our products and services remains strong, Second quarter contract awards were $6.7 billion. At Newport News, CVN 79 Kennedy successfully completed builder's trials earlier this year, and we expect to achieve preliminary acceptance later this year with final ship delivery in 2027. CVN 80 Enterprise continues to gain momentum and has achieved 64% erected. We expect to lay the keel for CVN 81 later this year. and on submarines, SSN 800 Arkansas is progressing towards delivery later this year. Shifting to mission technologies, we delivered another strong quarter with $760 million in sales and above 10% EBITDA margin, reflecting steady demand and disciplined execution. The division secured several major awards this quarter, including a recompete award of $418 million to continue supporting shipboard-based elevators across US Navy aircraft carriers and amphibious ships. A Romulus unmanned surface vessel advanced to U.S. Navy's MUSV at-sea testing phase scheduled for September, a major milestone in its development. We also broadened our MUSV industrial base through new partnerships with Bayou Metals and Halimar Shipbuilding, strengthening production capacity and scalability. Additionally, we secured the next production option for the Navy's Lionfish small unmanned undersea vehicle program, further demonstrating how our commercial Remus 300 has successfully evolved into the Navy's preferred next-generation UUV. The growth in budgets for autonomous products coupled with a strong domestic and international pipeline point to a potential significant growth in this market space. Our proven products and technologies, along with our partnerships with commercial technology leaders, put us in position to take advantage of this market inflection. For example, we recently announced our partnership with Applied Intuition to develop and integrate AI-defined capabilities for Next Generation Naval Platforms and Maritime Manned-Unmanned Teaming. Moving to an update on our operational initiatives, increasing shipbuilding throughput continues to be a main focus. Year to date, we've achieved a 12% improvement over 2025 with plans in place to meet our full year goal of 15%. Throughput improvements are expected to accelerate in the second half of the year as we hit more milestones and deliveries. Year to date, we've hired over 3,500 shipbuilders, We continue to gain traction with attracting new shipbuilders from pipeline programs, providing a foundation for our future workforce. Also, we are on track to increase distributed shipbuilding by 30% this year. We continue to evaluate meaningful opportunities to bring more capacity into the shipbuilding space, including additional shipyard facilities. Finally, an agreement has been reached on VCS Block 6 and the next Columbia submarine contracts. These contracts represent critical demand, signals, and stability, not just for our workforce, but for the thousands of suppliers across the country who provide parts for these submarines. Turning to activities in Washington, the President submitted his fiscal year 2027 budget request in April, which is now under consideration by Congress. As bills progress through both chambers, we continue to see bipartisan support for our programs reflected in the defense authorization and appropriation bills in the House and the Senate. The House Appropriations Bill adds funding for the submarine industrial base to invest in critical areas including supplier capacity and capability, strategic outsourcing, workforce training, technology, and infrastructure. We await the Senate appropriations position and final outcomes will depend on eventual respective conference committee negotiations. Now to summarize my remarks, we had a solid second quarter and are beginning to see positive momentum from continued investments in shipbuilding in the Maritime Industrial Base. We are focused every day on meeting our operational commitments to the Navy and delivering five ships over the next 12 months. And now I'll turn the call over to Brian for his remarks on Ingalls.