Defense Contractors Stocks Q4 Results: Benchmarking Huntington Ingalls (NYSE:HII)

Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Huntington Ingalls (NYSE:HII) and its peers.

Defense contractors typically require technical expertise and government clearance. Companies in this sector can also enjoy long-term contracts with government bodies, leading to more predictable revenues. Combined, these factors create high barriers to entry and can lead to limited competition. Lately, geopolitical tensions–whether it be Russia’s invasion of Ukraine or China’s aggression towards Taiwan–highlight the need for defense spending. On the other hand, demand for these products can ebb and flow with defense budgets and even who is president, as different administrations can have vastly different ideas of how to allocate federal funds.

The 13 defense contractors stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 3.4% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Huntington Ingalls (NYSE:HII)

Building Nimitz-class aircraft carriers used in active service, Huntington Ingalls (NYSE:HII) develops marine vessels and their mission systems and maintenance services.

Huntington Ingalls reported revenues of $3.48 billion, up 15.7% year on year. This print exceeded analysts’ expectations by 12.7%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ revenue estimates but a significant miss of analysts’ adjusted operating income estimates.

Chris Kastner, HII’s president and CEO, said, “We made solid progress on our operational initiatives in 2025 and enter 2026 with strong momentum. With more than 40 ships at Ingalls and Newport News in active construction or modernization, our focus in 2026 is clear: We must build on this momentum, and continue to increase our shipbuilding throughput. The U.S. Navy and all of our defense customers need our ships and technologies now more than ever and we are committed to delivering for our customer and the nation.”

Huntington Ingalls pulled off the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 1.7% since reporting and currently trades at $420.

Is now the time to buy Huntington Ingalls? Access our full analysis of the earnings results here, it’s free.

Best Q4: Leonardo DRS (NASDAQ:DRS)

Developing submarine detection systems for the U.S. Navy, Leonardo DRS (NASDAQ:DRS) is a provider of defense systems, electronics, and military support services.

Leonardo DRS reported revenues of $1.06 billion, up 8.1% year on year, outperforming analysts’ expectations by 7%. The business had an exceptional quarter with a solid beat of analysts’ revenue estimates and a solid beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 20.7% since reporting. It currently trades at $46.05.

Is now the time to buy Leonardo DRS? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Parsons (NYSE:PSN)

Delivering aerospace technology during the Cold War-era, Parsons (NYSE:PSN) offers engineering, construction, and cybersecurity solutions for the infrastructure and defense sectors.

Parsons reported revenues of $1.60 billion, down 7.5% year on year, falling short of analysts’ expectations by 4.1%. It was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.

Parsons delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 6.3% since the results and currently trades at $65.79.

Read our full analysis of Parsons’s results here.

RTX (NYSE:RTX)

Originally focused on refrigeration technology, Raytheon (NSYE:RTX) provides a a variety of products and services to the aerospace and defense industries.

RTX reported revenues of $24.24 billion, up 12.1% year on year. This print surpassed analysts’ expectations by 7%. It was a very strong quarter as it also logged an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA estimates.

The stock is up 5.1% since reporting and currently trades at $204.06.

Read our full, actionable report on RTX here, it’s free.

Lockheed Martin (NYSE:LMT)

Headquartered in Maryland, Famous for the F-35 aircraft, Lockheed Martin (NYSE:LMT) specializes in defense, space, homeland security, and information technology products.

Lockheed Martin reported revenues of $20.32 billion, up 9.1% year on year. This result topped analysts’ expectations by 2.4%. Overall, it was a strong quarter as it also put up an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ adjusted operating income estimates.

The stock is up 9.6% since reporting and currently trades at $654.78.

Read our full, actionable report on Lockheed Martin here, it’s free.

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