President Donald Trump issued a warning to Raytheon on Wednesday, saying he would cut the defense giant’s government contracts if it does not accelerate weapons production and act to rein in stock buybacks.
In a post on his social media platform, Truth Social, Trump wrote that Raytheon, a unit of RTX Corp., has been “the least responsive to the needs” of the Pentagon, noting that the company is “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.”
Either the company “steps up, and starts investing in more upfront Investment like Plants and Equipment, or they will no longer be doing business” with the Pentagon, Trump said.
He added that “under no circumstances” would Raytheon be allowed to conduct stock buybacks if it wants to continue doing business with the U.S. government.
Raytheon did not immediately respond to requests for comment.
The warning comes months after the Department of Defense awarded RTX a 20-year, $50 billion umbrella contract to provide a wide range of military needs, including systems and end-item production, spare parts, services and other types of support. Among the company’s most sophisticated programs is the Patriot missile defense system.
RTX stocks fell following Trump’s criticism before trading stopped on Wednesday, but rallied back after the president declared he would ask Congress to approve a $1.5 trillion military budget in 2027 — a $600 billion increase in spending. Trump said the proposal would enable the U.S. to build what he called a “dream military” and be paid for through tariff revenues.
“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 on Truth Social. “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.”
Trump’s push for a boost in defense spending comes as the U.S. enters a new era of geopolitical risk. The U.S. on Wednesday seized a Russian-flagged oil tanker in the North Atlantic while another ship was apprehended near the Caribbean. It came days after U.S. forces completed a raid in Caracas that resulted in the capture of Venezuelan leader Nicolás Maduro and his wife. The Trump administration also revived its plan to acquire Greenland this week. The White House told Military Times all options, including the use of force, are on the table for the Arctic island.
Tanya Noury is a reporter for Military Times and Defense News, with coverage focusing on the White House and Pentagon.
