U.S. President Donald Trump has issued a public warning to American defence contractors, accusing parts of the industry of prioritising shareholder returns over military readiness and signalling potential restrictions on dividends, share buybacks and executive pay unless production and maintenance improve.

In a series of posts published on Truth Social and X, Trump said defence companies were issuing “massive dividends” and conducting large stock buybacks “at the expense and detriment of investing in plants and equipment”, despite what he described as slow delivery of vital equipment to U.S. forces and allies. He argued that executive compensation across the sector was “exorbitant and unjustifiable” given performance shortfalls.

Trump said defence firms would be expected to invest in new and modern production facilities for both manufacturing and maintenance, warning that until those issues were addressed, executives should not be permitted to earn more than $5 million annually. He added that maintenance and repair of equipment already in service was “far too slow” and demanded that it be improved immediately.

In a separate post, Trump singled out Raytheon, claiming it had been among the least responsive contractors to Department of War requirements and the slowest to increase production volumes. He accused the company of aggressive shareholder payouts rather than meeting military needs, warning that unless it increased upfront investment in plants and equipment, it risked losing future business with the U.S. government. Trump also said Raytheon would not be permitted to conduct further stock buybacks if it sought continued government contracts.

George Allison
George Allison
George Allison is the founder and editor of the UK Defence Journal. He holds a degree in Cyber Security from Glasgow Caledonian University and specialises in naval and cyber security topics. George has appeared on national radio and television to provide commentary on defence and security issues. Twitter: @geoallison
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76 COMMENTS

  1. Things not on my bingo card for 2026: Trump complaining about how late stage capitalism functions.

    Bit rich coming from the pot isn’t it?

    • I think it’s more than complaining — he’s giving them a heads-up: change your ways, or you’ll be forced to. He’s attacking rent-seeking behaviour in a sector that only exists because of government contracts.

      • It’s pretty obvious that this is a man who has been bankrupt multiple times. He’s basically telling US MIC to not pay out to share holders. Which will make them less attractive to investors, and in turn will play into the hands of companies like Rheinmetall that have seen a massive boost in the stock market already.

        • … and of course in direct contradiction to his own way of doing business where only profit matters but where he only irregularly achieved it. But then most of the profits he has made over his life has need through strong tactics of this type as even Epstein found out. I suspect that we will see more of what has already been happening forcing defence businesses to give his interested and very connected parties gain substantial shareholdings in these companies. Capitalism is very much taking a socialist come National Socialist edge on the quiet where as with the oil from Venezuela him being the only trustworthy soul, the assets are taken in the name of the State but conveniently filtered through his ‘office’.

        • Trump isn’t permanently stopping shareholder payouts — he’s warning that dividends and buybacks will be suspended unless companies reinvest more. The MIC doesn’t rely on investors for operating revenue; almost all of its money comes from government contracts. Suspending payouts doesn’t hurt production — he just wants to redirect more of the profits toward delivering equipment and getting a better deal for taxpayers.

          It’s basically a kick up the arse: take profit without taking the piss, which we all know they’ve been doing for far too long.

    • This is trump telling the MIC that they now exist in a proper corporatist state and better follow the program or else.

      • If only, time will tell if any of it is actually that, after all he has never run a company on such terms himself, his modus operandi in Govt is always to cover true motives with something the average nationalist Joe superficially thinks is for the Country.

  2. Not a fan of the Orange one, but I agree with his point of view on this.
    Probably the same could be implied about UK defence contracts, but we also have to deal with a sluggish MOD/Treasury.

    • The biggest problem in the UK is the drip feed if money that barely keeps facilities functioning.

      The whole BAE Isle of White facility nearly bit the dust.

    • Telling UK defence contractors not to pay out to share holders will do a lot of harm though. If share holders don’t see pay outs they won’t invest in stocks, which in turn means that UK defence companies will struggle to find investment outside of actual contracts.

    • You are taking him at his word, that’s the error the public made and are now so regretting, let’s see if this is an exception shall we, it’s so far been words of this nature that in reality are simply covers for far more personally productive benefits. He has already gained shares in defence companies and other deemed nationally important assets and companies his Govt is seeing and indeed supporting, Intel for one and of course one shouldn’t forget his close doomsday associate Peter Thiel’s Palantir and Anduril. These companies need shaking up true but none more so than Boeing which upon conveniently threatening to close its fighter division obtained the programme of the Century from Trump so I will need to be convinced of the veracity of those words.

      • Boeing may be one of the worst examples of modern truely immortal “shareholder profit and share price over everything multinational.. the company that created a plane even pilots became scared to fly and tried to hide that fact using racist propaganda…( essentially the wogs can’t fly a plane properly)…

        Boeing is interesting because before its merger with a proper US MIC company is was always considered a prefect ethical engineering first “ we build for the greater good” company. After it’s essential takeover by McDonald Douglas in 1997 its corporate culture changed to something that you could measurably say was immoral ( building and then hiding the fact you built an airliner that crashed itself so another then crashes is essentially an evil act). As McDonald Douglas always had that culture ( essentially who cares if we build a shite plane ) maybe it’s the a driver towards a culture in a multinational company thats only job was to create machines specifically designed to kill people ? If its only purpose is to kill then if it accidentally kills its own crew now and again so what ? Where as Boeing essentially build planes to travel in en mass and so keeping people safe was inbuilt in their cultural fabric….

        So I think what I’m saying from this ramble is maybe private profit driven companies when their only real purpose is to make profit from dealing death and destruction have no way to keep and develop a moral culture and that is why the western MIC is so screwed up.. because before it was taken over by a pure MIC company it was a model of moral capitalism.

  3. He is right though over priced kit, not enough spares and years to deliver just like here its about making money not supplying the best kit on time.

  4. Cynical profiteering, robbing the public purse for personal gain disregarding the national interest. Always a good thing to take on. Could be one reason we in the UK get so little bang for our buck too. But after Trump is consigned to history, he’ll probably be found outrageously doing exactly the same if not more so. He’s driven horse & coaches through US conventions on US presidents being careful to avoid self-agrandisment while in office. Seeking minerals deals in the Donbass in colosion with Putin? Fingers in Venezuelan oil?(“For the benefit of the Venuezuelan people” he says while robbing millions of Americans of healthcare), Blanket pardons for firends, allies & familiy caught & convicted.
    50% rise in USA defence spending so “team Amerika” can pursue colonial world/regional domination from a POTUS who claims to be cutting taxes & avoiding foriegn wars, chasing a Nobel peace prize & jeopardising NATO that has preserved peace since WW2 etc. All the while slowly maginalising domestic protest, creating a far RW dystopian USA & creating a very dangerous, volitile world dis-order using the Russian/Chinese might is right playbook, backed by just 30-40% domestic polling.

    • Good to see a few people on here seeing through the headline news. Amazed that so many still believe his stated motivations are fundamentally believable. If these companies do change their ways, it will be coincidental to his true motivations. Everything is transactional, the commies can stay in power in Venezuela if they pay him and those who financed his election a substantial cut, the US have systematically reduced their military in Greenland while having a 1947 right to militarise it as they wish while after the 1st WW agreed to give up any claim on Greenland in exchange for what are now the US Virgin Islands but hey all those rare earth minerals and a red white and blue extension wets his appetite, so really it’s a matter of what those defence companies will give him for future orders. Not sure that’s the best way to select the right equipment, but then in the ludicrous Trump class we already see that the right sort of arms really isn’t the important point to him. I just hope these companies don’t actually worsen by the time he is finished. Interestingly some only survived the 30s due to war so they might have a lot to owe him for in the present environment too.

      • The similarity to the “30’s” is indeed rather uncanny.
        Truman’s Doctrine Is being shreaded faster than all the classified papers at Mar a lago It seems. 🤔

        Dang, I’m getting too serious here lately Y’all 😁😁😁

        (that was American speak, for any Americans who might turn up later !)
        (nice and friendly here so far today, nice to see a few new posters too 😉)

    • I’m sort of coming to the conclusion that a bit of corporatism in the MIC is probably the way forward ( corporatism essentially being they way a nation can control a business without fully nationalising it).. after all that is what china has essentially done with its MIC, china is so fascinating as they are the ultimate” if it works pragmatists”.. a communist state that has embraced corporatism ( corporatism being an expression and tool of far right fascist thinking and ideology).. it’s why they scare tha crap out of me, because they are essentially ideological drive extremists government ( nationalist communists) that will happily use any and every tool or concept ever created if it works..

    • How well does General Dynamics perform on American projects? (I believe we have a good idea how well they do on UK projects)

      • GD? They build Columbia-class and Virginia-class submarines, produce and upgrade M1/A2/E3/, etc Abrams tanks, and XM-30 IFV’s . They also have huge IT-related contracts. Their portfolio is very robust.

        • Wow, thanks for that, I didn’t realize. I wish I could understand what went wrong with Ajax. It’s obviously a lot more complicated than the contractor messing up and/or the mid-project changes by the MOD

        • And let’s look at the U.S. SSN program.. they are heading for 35- 40 SSNs in the mid 2030s when their requirement was 66.

    • I guess they may have to go along with designing that dual engined F-35 he dreamt up on a whim after all, I’m sure a gold mock up should keep him happy till he exits one way or another. Not sure it will make them more efficient mind.

    • It’s being a big 🐔-ed cock that hides the fact he isn’t actually doing these things. What do they say about words and actions.

  8. At the same time he says he wants to increase Defence (or is it War) spending by >50% in a year. Certainly will help share prices.
    Perhaps this should be a little more joined up?

  9. Capitalism does not live here anymore, just so we are clear what Trump and MAGA are developing is a form of corporatist ideology.

  10. Well he ain’t wrong, western defence firms always seem to have projects go way over budget and cost the taxpayer more.
    I love BAE and do hold stock in them but even I would love to see contracts go to smaller defence firms who can deliver systems or weapons faster or cheaper than the established bloat, that is the defence sector

    • Problem with the smaller companies is MoD and year end.

      If year end savings are needed the desk officer goes AWOL and no cash flow.

      Little Co then either does other things, goes bust or is bought out by BAE et al to save the IP and jobs.

      • Spot on, there are a whole load of smaller creative military or having military potential start ups out there at present who seem to be able to take ideas to design and production incredibly quickly often out of or inspired by the F1 industry and motor sport. Gaining market support is difficult and far too many gain investment only on the basis the investors get their profits in 3 to 5 years via a buy out often to foreign concerns and the Govt actually promotes it as ‘foreign investment in Britain’. Those that aren’t sold off open transfer to US listings making them technically US companies to attract investment and business. These effectively become US companies to all intent and purposes. Even if we actually start buying weaponry I doubt that trend will fundamentally change.

        • Think about it why would a guy intent upon efficiency and value for money head up his economy team with Lutnick a hard nosed econmically illiterate enforcer and Bessent a ‘man’ who lost almost as much money as a Hedge fund Manager as Trump lost money running casinos. Not for ensuring professional, cost effective, value for money and efficient relations with big corporations that’s for sure.

      • lots to go wrong unfortunately. big company buys little company, has no real clue about what they do,. Annoys core staff and ends up stuck with something they don’t understand and cant make or support. Little company find product cycles too long/run out of money or goes bust for some other reason and you are stuck again

    • Since Thatcher & Reagan there’s been a drive that has pretty much succeeded in driving out of buisiness honest, decent folk who do the best for the nations & societies they live in. Replaced by the most amoral, voracious sharks who see the public purse as something to be plundered for the minimum effort & return. They consider themselves above others, just Darwinianism weaponised, might is right. Patiorism means nothing, money is their god. HMG is supposed to keep everything running along & properly regulated so these people don’t get away with it, but all that big money & corruption has bought up enough political power that they’re rarely bought to account for their betrayal & savagely raping the system. Trump is just one of these. As usual he’s calling out those for doing things he does as much or even far more badly. Insane times.

      • Exactly and the irony won’t be lost, and those companies will know the true motivations just as the tech billionaires did as they beat the knee in the Oval Office. Geez he even got a retired Gates under his thumb I think we all know how. There is no tool he won’t use to make the powerful submit, few of them revolver around improving your business practices… unless that happens to benefit him or his family and devoted acolytes on occasion personally.

  12. “I wonder how many senator’s/members of congress brought shares just before this was announced?” or correction, holder of Raytheon /Lockheed Martin sold there stock before this was announced.

  13. Also note this
    “Trump doesn’t have unilateral authority to ban dividends or stock buybacks. Such changes would require Congressional approval and likely face legal challenges.
    Defense company executives and shareholders would oppose restrictions on capital returns. Politicians from both parties might resist changes affecting a major American industry.”

    • Whilst the Tangerine doesn’t have unilateral authority he does abuse the powers he has.

      He can direct investigations into profiteering which is a thing in DoD contracts. If you go over a big contract and sweat it enough you will find some subsection that made a bit too much somewhere.

      There is another side to this: War Powers Act – does specifically limit profiteering.

      So whilst he can’t officially limit it he can coerce firms into limiting profits.

  14. We are witnessing a series of events that are not so far removed from the 1930’s.

    All the Ingredients of a shit storm are happening right now.

    History may well be repeating Itself.

    Feck It, I’m off for a Curry. 😁

  15. The usual Trump coercion. Somewhere along the line his friends will be getting a slice of the action. When they give in they get hosed. The whole Greenland thing is the same.

  16. Maybe he can pass on his comments and observations to the similar money grabbing &^% ( **$!” ds, this side of the pond.

    • Well he does have his Facist troops on the ground now, shooting women in the face.

      “Heil Trumpler”.

      Whatever next, Anexation of a country ?

      • Only those in the Western Hemisphere “owned by European nations”, so:

        🇩🇰 Greenland
        🇫🇷 Saint Pierre and Miquelon
        🇫🇷 French Guiana
        🇳🇱 Aruba
        🇳🇱 Curacao
        🇳🇱 Sint Maarten
        🇳🇱 Bonaire
        🇳🇱 Sint Eustatius
        🇳🇱 Saba
        🇬🇧 Bermuda
        🇬🇧 Caymens
        🇬🇧 Turks & Caicos
        🇬🇧 British Virgin Islands
        🇬🇧 Anguilla
        🇬🇧 Montserrat
        🇬🇧 Pitcairn
        🇬🇧 Ascension
        🇬🇧 St Helena
        🇬🇧 South Sandwich Islands
        🇬🇧 Falkands

        He’ll probably stop after that, and make all the above unincorporated territories, like Puerto Rico, Guam, etc, etc. Though he might be tempted to add Cuba to the list or real-estate acquisitions by force.

        • I do now have a greater worry about the Falklands.. I have for a long time said that the Falklands are an issue because we cannot guarantee anyone will support us and that they are a profoundly important geostrategic set of islands.. infact the only thing that is stopping them being one of the single most important geostrategic points on the planet is the Antarctic treaty.. as soon as that folds ( and I think it will fold soon) the Falklands will become probably the most important real estate in the southern hemisphere.. because the nation that controls the Falklands and the other UK south Atlantic territories controls the access to the Antarctic peninsula ( the core of the British Antarctic territory) and the Antarctic peninsula is the key to controlling the Antarctic and its extractable resources.

          Infact for the very first time I have seen the whispers of this stated in the wider media, what if the U.S. supports Argentina in a bid for the Falklands..as it does tally with its new strategic defence paper. It’s strange because the scenario I always put forth was china doing the supporting of a South American country and the US and Europe refusing to aid the UK… now I think the worst possible risk is it may end up a South American country aided by the U.S… if not directly then indirectly.

            • He has a bit of a love in with the present Argentinian leadership, so if t stays under present leadership I think they will get closer and closer.. as long as he does what Trump says..

      • Domestic terrorists.. she was an evil domestic terrorist.. essentially now a respectable mother of 3 is a domestic terrorist if she gets scared by a load of masked gun armed men and makes a small error of judgment and deserved to be shot in the side of the head through her open car window.

        For me the most worry bit was the reaction of the federal government.. that instead of looking at this as a tragic mistake.. engendered by two people be put in fear situations.. the federal government immediately launched a polical warfare campaign against the poor dead woman and labelled her a terrorist.. the fact the state authorities and federal government are essentially at each other’s throats is a profound worry.. I actually think the U.S. is profoundly close to civil strife it’s a federal state and for the federal government and state governments to essentially be where they are at present is worrying. I don’t particularly like where the US is at present and I think it’s essentially no longer a reliable ally, but I don’t for a second wish civil strife on them, it’s really worrisome.. at present I see so many triggers for a global conflagration I don’t see a path in which the world does not get sucked into a set of organic wars with global reach ( WW4 ..most people forget that the world wars are essentially a whole set of conflicts that happened due to overwhelmingly complex interlinked geopolitical and geostrategic pressures that nobody could unwind or control, and its world war 4 because the Napoleon wars were a global conflict and only not called a world war because the term had not been invented at that point).

        • It’s pure Ministry of Truth…

          She was a mom, the widow of a US military serviceman. She’d dropped off her 6 year old at school and was on the way home when she turned into a street that that ICE had turned to chaos. After letting one ICE vehicle drive past, she then tries to pull out herself, and is murdered.
          Not a paid activist, not from out of state, not a terrorist.

          Inevitable given that ICE are acting like the Sturmabteilung, except the SA weren’t as heavily armed.

    • No it’s fine….corporatism is a proper fascist tool and tradition along the road to taking power in a country.

  18. Trump is pushing the paradigm that there will be a PRIORITY given on production; high output and an urgency in maintenance aligned with faster, cheaper spares.

    He (by “he” I mean the puppet masters) see elements of the MIC have instead prioritised shareholder’s value through dividends and buybacks, which has subsequently led to a hollowed-out industrial base.

    I suppose Trump intends to create a rapid expansion within the defence Industrial base to meet “his” security demands / trepidations.

    The MIC will have to move from a high-margin / low-volume production model to a lower-margin / higher-capacity ‘wartime-footing’ model.

    @ Spock … will we eventually see gov. “czars” appointed to the boardrooms?

    • It’s possible. They’d of course by MAGA loyalists and the companies would of course have to give them excessive remuneration packages regardless of whether they do any work: this administration being the most corrupt in history. These individuals would of course know nothing about the military, weapons, or manufacturing of any kind.

    • Well if you consider all Chinese corporations in law have specific requirements to the state, they each also have a shadow board of CCP members that has the power to step in at any time and take over running of the company if it is not following its responsibility to the CCP in law. Also most if not all major Chinese companies are financed from low interest loans from the state..

      Essentially china is a communist state that pretends to run a capitalist system ( so it can integrate with and take advantage of, control and if need be destroy western capitalist systems) it does this via a corporatist model. Really to protect itself the west needs its core industries and businesses to have a protective shell that essentially also has to be corporatist in nature.. the problem is the corporatist model was developed by fascists as a way of controlling society and the danger to western democracies is that if you build a corporatist model to protect against china your democracy will be easy pray to the fascist leaning within.

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