US Weapons Production: US President Donald Trump warned American defence companies that he will no longer accept slow work during what he called dangerous times. He shared his anger in a post on his Truth Social platform. He said the country needs weapons faster and companies are failing to deliver. His message came just before plans to lift the US defence budget for 2027 by 50%, which would push total military spending to $1.5 trillion each year.
Trump blamed defence bosses for caring more about money than safety. He said company leaders focus too much on shareholders and their own big pay. He called executive pay across the defence industry “exorbitant and unjustifiable”. He suggested a strict pay cap of $5 million for top executives. He also said companies should stop paying dividends and buying back shares. He wants them to use that money to build weapons faster.
Lokesh Machines Bags Rs. 22 Crore Defence Supply Order To Supply Machine Pistol Parts
Defence stocks
Trump wrote very clearly about his demands. “Military equipment is not being made fast enough,” Trump wrote. “It must be built now with the dividends, stock buybacks and over-compensation of executives, rather than borrowing from financial institutions or getting the money from your government.” His message marked a rare moment when a US president spoke directly about how big companies use their money.
After his comments went public defence stocks dropped fast. Shares of Lockheed Martin Northrop Grumman RTX and General Dynamics all fell during afternoon trading. Prices later recovered some losses after Trump said he still plans to sharply increase defence spending. Investors saw that higher budgets could still bring long term gains.
Trump directly criticised Raytheon which operates under RTX. He said the company was “the least responsive to the needs of the Department of War”. He warned Raytheon that it would lose future government contracts if it continued share buybacks. He did not explain how the government would enforce such rules. This left experts unsure about the legal power behind his threat.
KF-21 Boramae Set for First Delivery to South Korean Air Force in 2026
Big problems remain
Many analysts say dividends and buybacks form a core part of defence company plans. These payments help keep share prices stable. Lockheed Martin offers a clear example. In October the company raised its dividend for the 23rd year in a row to $3.45 per share. It also approved up to $2 billion in share repurchases. This pushed its total buyback plan to more than $9 billion.
Trump’s anger follows years of trouble in major defence projects. Lockheed Martin’s F-35 fighter jet has suffered long delays and higher costs. It now stands as one of the most expensive weapons systems ever built. Northrop Grumman also faces problems with its Sentinel missile programme. The project aims to replace the old Minuteman III system. The US military now says the programme runs 81% over budget.
Neither Lockheed Martin nor Northrop Grumman answered questions about Trump’s comments.
