Form 4: HII Executive Reports Routine Stock Transactions

Huntington Ingalls Industries' Chief Legal Officer, Chad N. Boudreaux, reported the settlement of restricted stock and a new grant of restricted stock rights.

Summary

• Chad N. Boudreaux, Executive Vice President & Chief Legal Officer of Huntington Ingalls Industries, Inc. (HII), reported transactions involving company common stock.
• On February 25, 2026, 6,470 shares of common stock were issued to Boudreaux upon the settlement of restricted performance stock rights (RPSRs) for the performance period ending December 31, 2025.
• The shares were valued at $435.58 per share at the time of settlement.
• Concurrently, 2,917.97 shares were withheld by the issuer for the payment of withholding taxes related to these RPSRs.
• Following these transactions, Boudreaux's direct beneficial ownership of common stock is 24,532.232 shares.
• Additionally, 1,136 Restricted Stock Rights (RSRs) were granted under the 2022 Long-Term Incentive Stock Plan on February 25, 2026.
• Each RSR represents a contingent right to receive an equivalent number of common shares, cash, or a combination thereof, at the Company's Compensation Committee's discretion.
• Boudreaux now beneficially owns 3,963.865 derivative securities (RSRs).

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive and routine filing, reflecting standard executive compensation practices and the successful vesting of performance-based awards, aligning management incentives with company performance.

Positives

• Settlement of 6,470 restricted performance stock rights indicates successful achievement of performance targets for the period ending December 31, 2025.
• Grant of 1,136 new Restricted Stock Rights aligns executive incentives with long-term company performance and shareholder value.

Negatives

• 2,917.97 shares were withheld by the issuer for payment of withholding taxes, reducing the net shares received by the executive.

Future Outlook

The newly granted Restricted Stock Rights (RSRs) will vest ratably in three equal installments upon each of the first, second, and third anniversaries of the grant date, February 25, 2026.

Industry Context

StockSavvy.ai notes that executive compensation, particularly through equity awards like restricted stock and performance-based units, is a standard practice across the defense and shipbuilding industry. This aligns executive incentives with long-term company performance, a common strategy to retain key talent and drive shareholder value in capital-intensive sectors.

Stakeholder Impact

• Shareholders: The alignment of executive incentives with long-term company performance through equity awards is generally viewed positively by shareholders.
• Employees: The compensation structure for senior leadership can influence overall company culture and compensation philosophy.

Next Steps

• The granted Restricted Stock Rights (RSRs) will vest in three equal annual installments starting February 25, 2027.

Key Dates

Recommendation

This Form 4 details routine executive compensation, including the settlement of performance-based stock rights and the grant of new restricted stock. These transactions are standard for publicly traded companies and do not provide new fundamental information that would warrant a change in investment recommendation for Huntington Ingalls Industries.

Keywords

Huntington Ingalls, HII, Form 4, insider trading, stock compensation, restricted stock, executive compensation, Chad Boudreaux