HII · CIK 1501585
What Huntington Ingalls Industries, Inc. told the SEC could break it.
Almost everything in Huntington Ingalls' register flows from a single customer: substantially all of its 2025 revenue came from the U.S. Government, primarily the Navy, so shifts in defense priorities, budget appropriations, shutdowns or continuing resolutions would directly affect its results. That government work also shapes its supply chain — it must buy certain materials and components from government-approved sources, and for some parts only one supplier exists, so a sole-source supplier's inability to deliver compliantly could raise contract costs and threaten its ability to perform. And it operates under the dense web of defense-procurement rules — FAR, DFARS, CAS, ITAR and the False Claims Act among them — where a noncompliance finding could mean reduced contract values, terminations, penalties, treble damages, or suspension or debarment.
3 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Customer concentration
- U.S. Government (substantially all revenue)high
Substantially all of Huntington Ingalls' 2025 revenue came from the US Government (primarily the Navy/Department of War); changes in government priorities, defense spending, budget appropriations, shutdowns or continuing resolutions could materially affect results.
“We conduct most of our business with the U.S. Government, primarily the Department. Substantially all of our revenues in 2025 was derived from products and services sold to the U.S. Government. We expect this to continue for the foreseeable future.”
SEC filing →As of 2026
Sole-source dependency
- sole-source / government-approved component suppliershigh
For its US Government contracts HII must procure certain materials/components from government-approved sources, and only one supplier may exist for certain components/parts; a sole-source supplier's inability to deliver compliantly could raise contract costs and jeopardize contract performance.
“In some cases, only one supplier may exist for certain components and parts required to manufacture our products. The inability of a sole source supplier to provide a necessary component or part on a timely, compliant, and cost-effective basis could increase our contract cost and affect our ability to satisfy our contract obligations.”
SEC filing →As of 2026
Regulatory & policy
- defense-procurement regulation (FAR, DFARS, CAS, ITAR, False Claims Act)medium
HII's government contracting is subject to extensive procurement regulation (FAR, DFARS, Truth in Negotiations Act, CAS, ITAR, False Claims Act, FCPA); a noncompliance finding could result in reduced contract values, terminations, penalties, treble damages, or suspension/debarment.
“Government agencies and subcontracts with other prime contractors, is subject to a variety of laws and regulations, including the FAR, the Defense Federal Acquisition Regulation Supplement, the Truth in Negotiations Act, the Procurement Integrity Act, the False Claims Act, CAS, the International Traffic in Arms Regulations promulgated under the Arms Export Control Act, the Close the Contractor Fraud Loophole Act, and the Foreign Corrupt Practices Act. A noncompliance determination by a government agency may result in reductions in contract values, contract modifications or terminations, penalties, fines, repayments, compensatory, treble, or other damages, or suspension or debarment.”
SEC filing →As of 2026
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