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U.S. President Donald Trump issued a sharp warning to Raytheon, a major U.S. defense contractor, threatening to cut the company’s government contracts unless it accelerates weapons production and curbs stock buybacks.

In a series of posts on his social media platform, Truth Social, Trump accused Raytheon, now known as RTX Corp., of failing to meet the Pentagon’s needs at a time of rising global security risks. He described the company as “the least responsive” defense contractor and stated that it had been slow to increase production, prioritizing shareholder returns over military readiness.

“Either the company steps up and starts investing in more upfront investments like Plants and Equipment, or they will no longer be doing business” with the Pentagon, Trump wrote. He added that “under no circumstances” would Raytheon be allowed to conduct stock buybacks if it wants to continue working with the U.S. government. Raytheon did not immediately respond to requests for comment.

Trump’s criticism centered on what he sees as a mismatch between the profits of defense contractors and the pace at which they deliver critical equipment. In one post, he wrote, “MILITARY EQUIPMENT IS NOT BEING MADE FAST ENOUGH.”

He argued that funds currently being used for dividends, stock buybacks, and executive compensation should instead be redirected toward expanding production capacity. “It must be built now with the Dividends, Stock Buybacks, and overcompensation of Executives, rather than borrowing from Financial Institutions, or getting the money from your government,” Trump wrote.

U.S. President Donald J. Trump states that Raytheon will no longer be doing business with the Department of Defense if they don’t start “investing in more upfront Investments like Plants and Equipment,” claiming that the defense contractors has been “the least responsive to the… pic.twitter.com/iV9KAtscF9

— OSINTdefender (@sentdefender) January 7, 2026

The president singled out Raytheon as the worst offender, accusing it of aggressively rewarding shareholders while lagging behind competitors in increasing output. “Our Country comes FIRST, and they’re going to have to learn that, the hard way,” he warned.

Tension Despite Massive Long-Term Contract

The warning comes just months after the Department of Defense awarded RTX a 20-year umbrella contract worth up to $50 billion, the maximum possible under the agreement. The contract covers a wide range of military needs, including weapons systems, end-item production, spare parts, services, and long-term support.

One of RTX’s most prominent programs is the Patriot missile defense system, the U.S. military’s flagship surface-to-air missile platform, which is also used by several allies. The company is responsible not only for producing the system but also for maintaining it and supplying spare parts.

RTX reported sales exceeding $80 billion in 2024. Earlier this week, the Federal Aviation Administration awarded the company a $438 million contract to modernize its radar systems, highlighting its deep integration across the U.S. defense and aviation sectors.

Markets React as Defense Spending Plans Expand

RTX shares fell after Trump’s initial remarks, reflecting investor concerns over potential contract disruptions and tighter government oversight. However, the stock recovered later in the day after Trump announced plans to seek a dramatic increase in U.S. defense spending.

In another Truth Social post on Wednesday evening, Trump said he would ask Congress to approve a $1.5 trillion military budget for fiscal year 2027, a roughly $600 billion increase over typical annual defense spending levels.

“I have determined that, for the Good of our Country, especially in these very troubled and dangerous times, our Military Budget for the year 2027 should not be $1 Trillion Dollars, but rather $1.5 Trillion Dollars,” Trump wrote.

“This will allow us to build the ‘Dream Military’ that we have long been entitled to and, more importantly, that will keep us SAFE and SECURE, regardless of foe,” he said, adding that the proposed increase would be funded through tariff revenues.

Geopolitical Backdrop Raises Pressure on Industry

Trump’s push for faster weapons production comes amid heightened geopolitical tensions. On Wednesday, the United States seized a Russian-flagged oil tanker in the North Atlantic, while another vessel was apprehended near the Caribbean as part of efforts to enforce sanctions.

Days earlier, U.S. forces completed a raid in Caracas that resulted in the capture of Venezuelan leader Nicolas Maduro and his wife. The Trump administration has also revived its plan to acquire Greenland, with the White House telling Military Times that all options, including the use of force, remain on the table regarding the Arctic island.

Against this backdrop, Trump has argued that defense contractors must be able to deliver equipment faster and maintain existing systems more efficiently.

Executive Pay and New Factories in the Spotlight

Beyond production speed, Trump also targeted executive compensation in the defense industry. He called pay packages “exorbitant and unjustifiable,” given what he described as slow delivery of vital equipment to both U.S. forces and allies.

“From this moment forward, these Executives must build NEW and MODERN Production Plants, both for delivering and maintaining this important Equipment, and for building the latest Models of future Military Equipment,” Trump wrote.

He suggested that until such investments are made, no defense executive should earn more than $5 million per year, calling that figure “a mere fraction of what they are making now.”

Trump also complained that defense companies were too slow in repairing and servicing existing equipment, a core responsibility of contractors like RTX.

Aggressive Approach to Private Industry

Since beginning his second term, Trump has taken a more hands-on approach toward private companies tied to national security. Earlier this year, the U.S. government received a so-called “golden share” in US Steel, granting it veto power over major corporate decisions following the company’s merger with Japan’s Nippon Steel.

In another case, Intel agreed to sell the U.S. government a 10 percent stake amid pressure from the administration. The government has also moved to acquire stakes in mining firms involved in rare earths and other critical materials.

It remains unclear how Trump plans to enforce his demands on defense contractors or whether all of his proposals would withstand legal challenges. Still, his warnings signal a tougher stance toward an industry that plays a central role in both national security and the U.S. economy, where defense spending accounted for roughly 2.7 percent of gross domestic product in 2024.