President Donald Trump Wednesday escalated his warning to U.S. defense contractors by singling out Raytheon, accusing the firm of putting shareholders ahead of military readiness and threatening to cut off government business unless it dramatically changes course.
In a Truth Social post, Trump said Raytheon “has been the least responsive to the needs of the Department of War, the slowest in increasing their volume, and the most aggressive spending on their Shareholders rather than the needs and demands of the United States Military,” adding that the company appears to think “this is the Biden Administration, and this is ‘business as usual,’ IT’S NOT!”
Earlier Wednesday, Trump delivered a sharp warning to U.S. defense contractors, accusing the industry of putting shareholder rewards and executive pay ahead of producing and maintaining military equipment.
In a post on his Truth Social platform, Trump said defense companies have paid out “massive dividends” and pursued large stock buybacks instead of investing sufficiently in new factories, equipment, and production capacity.
In his social media post, Trump did not mention specific companies.
Nevertheless, defense stocks including Lockheed Martin, Northrop Grumman, General Dynamics and Raytheon fell Wednesday afternoon following reports Trump is preparing to sign an executive order targeting contractors that buy back shares, pay dividends, or award large executive pay packages while running over budget or behind schedule on Pentagon contracts.
In after-hours trading, Raytheon fell the most, plummeting 87%, or $164, to $1,107.79 a share.
Trump praised U.S. military hardware as “the best in the world,” but criticized defense executives for what he described as excessive compensation despite slow production timelines and inadequate maintenance.
“This situation will no longer be allowed or tolerated,” Trump wrote, signaling a tougher approach toward an industry that depends heavily on federal contracts.
He also targeted executive pay directly, writing, “No executive should be allowed to make in excess of $5 million,” calling that amount “a mere fraction” of current compensation levels.
Trump’s full Truth Social post on Raytheon reads:
“I have been informed by the Department of War that Defense Contractor, Raytheon, has been the least responsive to the needs of the Department of War, the slowest in increasing their volume, and the most aggressive spending on their Shareholders rather than the needs and demands of the United States Military.
“Raytheon seems to think this is the Biden Administration, and this is “business as usual,” IT’S NOT!
“Either Raytheon steps up, and starts investing in more upfront Investment like Plants and Equipment, or they will no longer be doing business with Department of War.
“Also, if Raytheon wants further business with the United States Government, under no circumstances will they be allowed to do any additional Stock Buybacks, where they have spent Tens of Billions of Dollars, until they are able to get their act together. Our Country comes FIRST, and they’re going to have to learn that, the hard way!”
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