Trump issued an ultimatum to Raytheon, calling it the ‘least responsive’ defense contractor when it comes to fulfilling the Department of War’s needs.
“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,” Trump said in a post Wednesday.
The president accused Raytheon of prioritizing gains for shareholders rather than the needs of the Department of War. He criticized them for not building more infrastructure equipment.
Raytheon, which specializes in air and missile defense and cybersecurity, is a subsidiary of RTX company headquartered in Arlington, Virginia, and has worked with the government since World War II.
It produces air-to-air missiles, autonomous missile launchers, and advanced sonar equipment.
Trump promised in an earlier post Wednesday that he will go after defense contractors who continue to put shareholder profits first.
The president has complained about contractors’ manufacturing shortfalls since early December 2025, when he was reportedly preparing an order to limit stock buybacks, dividends, and executives’ salaries for defense contractors.
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To expedite change, he warned that the Department of War will block dividend payouts and cap executive compensation at $5 million until firms prove they can produce military hardware on schedule.
Trump’s ultimatum has already proven fruitful as Raytheon’s stock slid more than 5% in after-hours trading. Other giants such as Lockheed Martin and Northrop Grumman also saw stocks slide about 5%.
