HUNTINGTON INGALLS INDUSTRIES, INC. (HII) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that HUNTINGTON INGALLS INDUSTRIES, INC. surfaced in its latest filing.

• A federal government shutdown occurred in October 2025, which could result in delay or cancellation of government programs or delay of payments by our customer.October 2025
• On July 4, 2025, Public Law 119-21 (the “Act”) was signed into law, significantly changing the U.S. Internal Revenue Code, including making bonus depreciation and immediate expensing of domestic research and development expenditures permanent.July 4, 2025
• Approximately 45% of our employees are covered by 13 collective bargaining agreements, which generally expire after three to five years and are subject to renegotiation.
• We have purchased group annuity contracts from insurance companies using pension trust assets to transfer pension risk, and expect to continue evaluating such transactions in the future.
• Goodwill and purchased intangible assets from prior business acquisitions accounted for approximately 21% and 5%, respectively, of our total assets as of December 31, 2025.December 31, 2025
• Substantially all of our revenues in 2025 was derived from products and services sold to the U.S. Government.2025
• Approximately 46% of our revenues in 2025 were generated under fixed-price incentive contracts, approximately 50% under cost-type contracts, approximately 1% under time and material contracts, and approximately 3% under firm fixed-price contracts.2025