Trump Says Raytheon Could Lose Business Over Stock Buybacks

President Donald Trump criticized military contractor Raytheon on Jan. 7 and warned that its future business with the U.S. government may be in jeopardy if the firm doesn’t change its practices.

“I have been informed by the Department of War that Defense Contractor, Raytheon, has been the least responsive to the needs of the Department of War, 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,” Trump wrote in a post on Truth Social on Wednesday.

Raytheon produces a variety of weapons and equipment for the military, including missiles, missile defense systems, radar systems, and sensors.

“Either Raytheon steps up, and starts investing in more upfront Investment like Plants and Equipment, or they will no longer be doing business with Department of War,” Trump wrote.

“Also, 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. Our Country comes FIRST, and they’re going to have to learn that, the hard way!”

The Epoch Times reached out to Raytheon for comment on Trump’s social media post and did not receive a response by publication time.

Trump’s comments toward the defense contractor are just the latest of his administration’s efforts to reform the relationship between the military and its defense industry partners.

In a Truth Social post earlier on Wednesday, Trump issued a warning to defense contractors broadly, criticizing them for offering stock buybacks and paying out dividends to shareholders. He said such practices “will no longer be allowed or tolerated!”

Trump also took aim at the compensation packages defense industry executives receive, stating those packages “are exorbitant and unjustifiable given how slowly these Companies are delivering vital Equipment to our Military, and our Allies.”

“Salaries, Stock Options, and every other form of Compensation are far too high for these Executives,” he added.

In his Wednesday social media post, Trump said the efforts to reward defense industry leaders and their shareholders have come at the expense of reinvestment in industrial capacity. He also faulted defense industry partners for failing to deliver equipment, maintenance, and other services on time.

The president recently praised the equipment and capabilities fielded by the U.S. military, including in the days since U.S. forces captured Venezuelan leader Nicolás Maduro.

Trump’s pair of Wednesday social media posts came the same week Secretary of War Pete Hegseth launched a multi-state tour of the defense industrial base, which the Pentagon has dubbed the “Arsenal of Freedom Tour.”

Hegseth addressed shipbuilders from the Huntington Ingalls Industry shipyard in Newport News, Virginia, on Jan. 5 during the first stop in his defense industry tour.

During his remarks, Hegseth said the military would provide larger and longer-term contracts to defense industry partners who reinvest in their production capabilities. He also issued a word of warning for companies unwilling or unable to change.

“For those who can’t adapt, who are too comfortable with the old slow ways of doing business, we wish them well in their other future endeavors, because we will find new partners who will adapt, who will invest, who will take care of their people, who will move at speed and at scale,” Hegseth said.

“We will reward that speed, that scale, that innovation and that performance. We’re not rewarding process, paperwork or just the C-suite.”