Archive · 8 Jan 2026
Trump Demands Defense Companies Halt Buybacks and Dividends
President Donald Trump has told big defense companies to stop giving money to their shareholders and to stop buying their own stock.
He wants them to use that money to build more military equipment and take better care of it.
Trump said the companies should not pay their executives more than $5 million until they build new factories.
He is upset because he thinks the companies are not making military equipment fast enough.
Shares of these companies went down when Trump made these comments.
Other officials, like Defense Secretary Pete Hegseth and Navy Secretary Carlos Del Toro, have also criticized the defense companies for making record profits while the military equipment is often late and over budget.
Trump also announced plans for a $1.5 trillion military budget in 2027, a 50% increase from the current budget, to ensure a strong military.
Trump demands defense companies halt dividends, stock buybacks, and cap executive pay at $5 million until they invest more in production and research.
Shares of major US defense contractors, including Northrop Grumman, Lockheed Martin, RTX Corp., General Dynamics, and Raytheon, dropped following Trump's comments.
Trump reiterated his demands from a previous post on Dec. 22, 2023, and plans to meet with defense executives to enforce his demands.
Defense Secretary Pete Hegseth and Navy Secretary Carlos Del Toro have also criticized defense companies for slow procurement processes and record profits.
Trump's comments aim to address the slow delivery of military equipment and prioritize investment in production and maintenance.
- Who
- Donald Trump, Defense Secretary Pete Hegseth, Navy Secretary Carlos Del Toro, Defense Contractors (Northrop Grumman, Lockheed Martin, RTX Corp., General Dynamics, Raytheon)
- What
- Trump demands defense companies stop dividends, buybacks, and cap executive pay until they invest more in production and research
- When
- Comments made on Truth Social on Tuesday, reiterating earlier statements from Dec. 22, 2023
- Where
- United States
- Why
- To address slow delivery of military equipment and prioritize investment in production and maintenance
- Key Figures
- Donald Trump, Defense Secretary Pete Hegseth, Navy Secretary Carlos Del Toro
- Companies Affected
- Northrop Grumman, Lockheed Martin, RTX Corp., General Dynamics, Raytheon
- Executive Pay Cap
- $5 million
- Stock Price Impact
- RTX fell 12%, Lockheed Martin and Northrop Grumman dropped 8–10%
- Previous Comments
- Trump reiterated comments from Dec. 22, 2023
- Defense Procurement Issues
- Weapons often over-budget, years late, and obsolete
- Defense Company Profits
- Record profits as per Navy Secretary Del Toro
- Proposed Military Budget
- $1.5 trillion in 2027
Sources
Trump Demands Defense Companies Stop Buybacks and Dividends
Trump Warns Defense Contractors To Halt Dividends And Buybacks Until Weapons Production Rises
Trump Seeks 50% Hike In Defense Budget To $1.5 Trillion
Why Did Raytheon Stock Tank? Trump’s Truth Social Warning Sparks Defense Stock Selloff
‘Dream Military’: Trump Targets $1.5 Trillion Pentagon Budget As RTX, Lockheed Shares Sink
Trump proposes $1.5 trillion US defence budget citing ‘dangerous times’
Trump touts ‘Dream Military’ with 50% defence budget boost as Colombia, Mexico and Greenland tensions grow
Trump wants to increase military budget to $1.5 trillion
‘Dream military’: Trump unveils 50% defence budget hike as tensions rise with Greenland, Colombia, Mexico
Donald Trump proposes military budget of $1.5 trillion for 2027 to build ‘dream military’
