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Revenue
 3 Months Ended
Mar. 31, 2026
Disaggregation of Revenue [Abstract]  
Revenue from Contract with Customer REVENUE
Disaggregation of Revenue

The following tables present revenues on a disaggregated basis:
Three Months Ended March 31, 2026
($ in millions)IngallsNewport NewsMission TechnologiesIntersegment EliminationsTotal
Revenue Type
Product sales$614 $1,364 $26 $— $2,004 
Service revenues108 301 686 — 1,095 
Intersegment3 — 36 (39)— 
Sales and service revenues$725 $1,665 $748 $(39)$3,099 
Customer Type
Federal$722 $1,665 $709 $— $3,096 
Commercial— — 3 — 3 
Intersegment3 — 36 (39)— 
Sales and service revenues$725 $1,665 $748 $(39)$3,099 
Contract Type
Firm fixed-price$1 $— $103 $— $104 
Fixed-price incentive613 744 — — 1,357 
Cost-type108 921 581 — 1,610 
Time and materials— — 28 — 28 
Intersegment3 — 36 (39)— 
Sales and service revenues$725 $1,665 $748 $(39)$3,099 

Three Months Ended March 31, 2025
($ in millions)IngallsNewport NewsMission TechnologiesIntersegment EliminationsTotal
Revenue Type
Product sales$526 $1,160 $27 $— $1,713 
Service revenues107 236 678 — 1,021 
Intersegment4 — 30 (34)— 
Sales and service revenues$637 $1,396 $735 $(34)$2,734 
Customer Type
Federal$633 $1,396 $701 $— $2,730 
Commercial— — 4 — 4 
Intersegment4 — 30 (34)— 
Sales and service revenues$637 $1,396 $735 $(34)$2,734 
Contract Type
Firm fixed-price$— $2 $97 $— $99 
Fixed-price incentive526 766 2 — 1,294 
Cost-type107 627 569 — 1,303 
Time and materials— 1 37 — 38 
Intersegment4 — 30 (34)— 
Sales and service revenues$637 $1,396 $735 $(34)$2,734 
Three Months Ended March 31
($ in millions)20262025
Major Programs
Amphibious assault ships$345 $332 
Surface combatants and coast guard cutters377 299 
Other3 6 
Total Ingalls725 637 
Aircraft carriers881 758 
Submarines622 516 
Other162 122 
Total Newport News1,665 1,396 
All-domain operations and warfare systems492 485 
Global security, unmanned systems, and other256 250 
Total Mission Technologies748 735 
Intersegment eliminations(39)(34)
Sales and service revenues$3,099 $2,734 

As of March 31, 2026, the Company had $54.0 billion of remaining performance obligations. The Company expects to recognize approximately 40% of its remaining performance obligations as revenue through 2027, an additional 35% through 2029, and the balance thereafter.

Cumulative Catch-up Revenue Adjustments

The following table presents the effect of net cumulative catch-up revenue adjustments on operating income and diluted earnings per share:
Three Months Ended March 31
($ in millions, except per share amounts)20262025
Effect on operating income(1)
$1 $— 
Effect on diluted earnings per share (net of tax)$0.02 $— 
(1) For the three months ended March 31, 2026, the effect of net cumulative catch-up revenue adjustments on
operating income is materially consistent with the effect on revenue.

For the three months ended March 31, 2026, no individual favorable or unfavorable cumulative catch-up revenue adjustment was material to the Company's unaudited condensed consolidated statements of operations and comprehensive income.

For the three months ended March 31, 2025, cumulative catch-up revenue adjustments netted to zero, and did not have an effect on operating income or diluted earnings per share. The Company's Newport News segment experienced performance challenges in the construction of aircraft carriers and Virginia class (SSN 774) submarines. For the three months ended March 31, 2025, cumulative catch-up revenue adjustments included significant unfavorable performance adjustments on the Enterprise (CVN 80) and Doris Miller (CVN 81) construction contract and the Virginia class (SSN 774) submarine program, which were offset by contract incentives.

Contract Balances

The Company reports contract balances in a net contract asset or contract liability position on a contract-by-contract basis at the end of each reporting period. Net contract assets were comprised as follows:
($ in millions)March 31, 2026December 31, 2025
Contract assets$1,989 $1,758 
Contract liabilities822 1,220 
Net contract assets$1,167 $538 
The Company’s net contract assets increased $629 million from December 31, 2025 to March 31, 2026, primarily as a result of the timing of billings across programs on certain U.S. Navy contracts. The Company recognized revenue related to its prior year-end contract liabilities of $758 million and $552 million for the three months ended March 31, 2026 and 2025, respectively.