Form 4: HII Executive Reports Stock Transactions and RSR Grant

Huntington Ingalls Industries' Corp VP, Controller & CAO, Nicolas G. Schuck, reported the settlement of restricted performance stock rights and a new grant of restricted stock rights.

Summary

• Nicolas G. Schuck, Corporate Vice President, Controller & Chief Accounting Officer of Huntington Ingalls Industries, Inc. (HII), reported transactions involving company common stock and restricted stock rights.
• On February 25, 2026, Mr. Schuck acquired 2,390 shares of HII Common Stock at a price of $435.58 per share, resulting from the settlement of restricted performance stock rights (RPSRs) for the performance period ending December 31, 2025.
• Concurrently, 1,077.594 shares of Common Stock were disposed of at $435.58 per share to cover withholding taxes related to the RPSR settlement.
• Following these transactions, Mr. Schuck directly beneficially owned 3,865.857 shares of Common Stock.
• Additionally, on February 25, 2026, Mr. Schuck was granted 327 Restricted Stock Rights (RSRs) under the 2022 Long-Term Incentive Stock Plan (LTISP).
• These RSRs represent a contingent right to receive an equivalent number of common shares (or cash/combination) and will vest ratably in three equal installments on the first, second, and third anniversaries of the grant date.
• After the RSR grant, Mr. Schuck directly beneficially owned 1,178.501 Restricted Stock Rights.
• Mr. Schuck also holds an interest in the HII Stock Fund of the Huntington Ingalls Industries, Inc. Savings Excess Plan (SEP), totaling 5,253.0069 units, which represent shares of issuer common stock.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this filing as neutral. It reports standard executive compensation activities and does not contain information that would significantly alter the company's financial outlook or operational status.

Future Outlook

The newly granted Restricted Stock Rights (RSRs) will vest ratably over three years, indicating a continued long-term incentive structure for the reporting person.

Industry Context

StockSavvy.ai notes that executive compensation, particularly through equity awards like Restricted Stock Rights and Performance Stock Rights, is a standard practice across the defense and shipbuilding industries. These mechanisms are designed to align executive interests with long-term shareholder value.

Comparison to Industry Standards

• The use of Restricted Stock Rights (RSRs) and Restricted Performance Stock Rights (RPSRs) for executive compensation is a common practice among large industrial and defense contractors, similar to companies like Lockheed Martin (LMT) or General Dynamics (GD), which also utilize various forms of equity-based incentives to retain and motivate key personnel.
• The tax withholding upon settlement of equity awards is a standard procedure, consistent with practices observed across publicly traded companies globally to manage tax obligations arising from vested equity.

Stakeholder Impact

• Shareholders: The filing reflects routine executive compensation practices, which are part of the company's overall governance and incentive structure. It does not indicate any direct immediate impact on shareholder value beyond the standard dilution from equity awards.

Next Steps

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

Key Dates

Recommendation

This Form 4 filing details routine insider transactions related to executive compensation, including the settlement of performance-based stock rights and the grant of new restricted stock rights, along with tax withholding. It does not provide new material information regarding the company's operational performance, financial health, or strategic direction that would warrant a change in investment recommendation. Therefore, a 'hold' recommendation is appropriate, pending further fundamental analysis from other filings.

Keywords

Huntington Ingalls Industries, HII, Form 4, Insider Trading, Restricted Stock Rights, RSRs, Executive Compensation, Stock Settlement, Performance Stock Rights, Long-Term Incentive Plan