Form 4: Director Faller Acquires HII Stock Units

Huntington Ingalls Industries Director Craig S. Faller acquired 7.072 common stock units as dividend equivalents, increasing his beneficial ownership to 1,446.155 shares.

Summary

• Craig S. Faller, a Director of Huntington Ingalls Industries, Inc. (HII), acquired additional shares.
• The transaction occurred on September 12, 2025.
• He acquired 7.072 shares of Common Stock (SUA) at a price of $0 per share.
• These shares represent dividend equivalents credited on his existing director stock units (SUA) under the company's Long-Term Incentive Stock Plans (LTISPs).
• Following this transaction, Mr. Faller beneficially owns a total of 1,446.155 shares.
• Each SUA grants the right to receive one share of common stock, generally payable within 30 days after a non-employee director ceases board services.

Sentiment

Score: 7

Explanation: The acquisition of shares through dividend equivalents is a routine event, but it still represents an increase in director ownership, aligning interests with shareholders.

Positives

• Director Craig S. Faller increased his beneficial ownership in Huntington Ingalls Industries, Inc. by acquiring 7.072 shares.
• The acquisition of shares through dividend equivalents demonstrates the company's ongoing dividend payments to shareholders, aligning director interests with company performance.

Future Outlook

The acquired stock units (SUA) will generally become payable as common stock shares within 30 days following the date a non-employee director ceases to provide services as a member of the board of directors.

Management Comments

• Dividend equivalents are credited on each director stock unit (SUA) held by the Reporting Person following the payment of the Company's quarterly cash dividend.

Industry Context

This transaction is a routine insider filing, common for directors receiving compensation in the form of stock units and dividend equivalents, and does not inherently reflect broader industry trends or competitive positioning.

Related Party Transactions

• Director Craig S. Faller acquired 7.072 shares of common stock (SUA) as dividend equivalents under the Huntington Ingalls Industries, Inc. 2012 and 2022 Long-Term Incentive Stock Plans, which is a transaction between a related party and the company as part of a compensation arrangement.

Stakeholder Impact

• Shareholders: Increased alignment of director's interests with shareholders due to higher beneficial ownership.
• Employees: No direct impact mentioned.
• Customers/Suppliers/Creditors: No direct impact mentioned.

Next Steps

• The acquired stock units (SUA) will generally become payable as common stock shares within 30 days following the date Craig S. Faller ceases to provide services as a member of the board of directors.

Key Dates

Recommendation

This Form 4 reports a routine acquisition of shares by a director through dividend equivalents, which is part of a standard compensation plan. It does not provide new material information that would warrant a change in investment recommendation for Huntington Ingalls Industries, Inc. The increased beneficial ownership, while minor, aligns director interests with shareholders.

Keywords

HII, Huntington Ingalls, Director, Insider Trading, Stock Acquisition, Form 4, Dividend Equivalents, Craig S. Faller, Common Stock, LTISP