Form 4: Kratos EVP & CFO Reports Stock Sales and RSU Activity

Kratos Defense & Security Solutions' EVP & CFO, Deanna H. Lund, reported sales of common stock under a 10b5-1 plan and the vesting and exercise of restricted stock units.

Summary

• Deanna H. Lund, EVP & CFO and Director of Kratos Defense & Security Solutions, Inc. (KTOS), reported multiple transactions involving the company's common stock and restricted stock units (RSUs).
• On January 2, 2026, Lund sold a total of 5,000 shares of common stock at weighted average prices ranging from $75.325 to $79.61 per share. These sales were executed under a pre-arranged 10b5-1 trading plan adopted on May 20, 2025.
• On January 3 and January 4, 2026, Lund acquired a total of 75,000 shares of common stock through the vesting of previously granted Restricted Stock Units (RSUs) at an exercise price of $0.
• Concurrently with the RSU vesting, a total of 38,194 shares were withheld in net transactions to satisfy tax liabilities at a price of $79.29 per share.
• On January 3, 2026, Lund was granted an additional 75,000 Restricted Stock Units, which are scheduled to vest ratably over the next five years.
• Following these reported transactions, Lund directly beneficially owns 280,041 shares of common stock and 45,000 unvested Restricted Stock Units.

Sentiment

Score: 5

Explanation: The filing reports routine insider transactions, including both sales under a pre-arranged plan and acquisitions through RSU vesting, along with a new RSU grant. There is no inherently positive or negative sentiment beyond the standard reporting of executive compensation and trading activity.

Positives

• The acquisition of 75,000 shares of common stock through RSU vesting indicates continued long-term incentive compensation for the executive.
• The grant of an additional 75,000 Restricted Stock Units on January 3, 2026, aligns the executive's interests with long-term shareholder value creation.

Negatives

• The sale of 5,000 shares of common stock by an insider, even under a 10b5-1 plan, represents a reduction in direct ownership.

Future Outlook

The filing primarily details past transactions and does not contain explicit forward-looking statements or guidance beyond the vesting schedule of the newly granted Restricted Stock Units, which will vest ratably over the next five years.

Industry Context

This Form 4 filing is specific to an insider's transactions at Kratos Defense & Security Solutions and does not provide broader industry context or trends. It reflects routine executive compensation and personal trading activities within the defense and security sector.

Stakeholder Impact

• Shareholders: The transactions represent routine insider activity, with a net increase in the executive's direct common stock holdings after accounting for RSU vesting and sales. Sales were pre-planned, reducing the likelihood of market speculation.
• Employees: The RSU grant and vesting are part of standard executive compensation practices, which can influence employee morale and retention strategies.

Next Steps

• The newly granted 75,000 Restricted Stock Units will vest ratably on each of the first five anniversaries of the January 3, 2026, grant date.

Key Dates

Keywords

Kratos Defense & Security Solutions, KTOS, Insider Trading, Form 4, Stock Sale, Restricted Stock Units, Executive Compensation, 10b5-1 Plan