Trump threatens Raytheon with loss of Pentagon work
President Donald Trump used a Truth Social post on Jan. 7, 2026 to single out Raytheon-owner RTX, accusing the company of being 'the least responsive' to Defense Department needs and warning it must quickly boost investment in 'plants and equipment' if it wants to keep doing business with the Pentagon. The threat came as part of a broader, highly unusual directive Trump issued to U.S. defense firms ordering them to cap executive pay, halt dividends and buybacks, and speed up weapons output, even though it is unclear what legal mechanisms he could use to enforce those demands beyond cutting contracts. RTX, which booked $43.5 billion in defense revenue in 2024 and supplies core systems like Stinger, Tomahawk and a new nuclear cruise missile, did not immediately respond to Axios’ questions.
📌 Key Facts
- Trump on Jan. 7, 2026 publicly ordered U.S. defense companies to cap executive pay, stop dividends and stock buybacks, and increase production.
- In a specific Truth Social post, he said Raytheon 'has been the least responsive to the needs' of DoD and must 'quickly' reprioritize or risk losing Pentagon business.
- RTX generated $43.5 billion in defense-related revenue in 2024 and produces key systems including Stinger air defenses, Coyote drone interceptors, Tomahawk missiles and a nuclear cruise missile for B-52 bombers.
- The article notes such direct presidential interventions in defense firms’ internal financial policies are highly unusual and that Trump has not detailed the legal basis for enforcing these dictates beyond threatening contracts.
📊 Relevant Data
RTX's CEO received more than $23.7 million in total compensation in fiscal year 2024.
Trump says he plans crackdown on defense firms over executive pay and shareholder payouts — The Guardian
RTX is on track to return between $36 and $37 billion to shareowners through dividends and share repurchases from the date of the Raytheon merger through 2025.
RTX Board of Directors Increases Quarterly Cash Dividend — RTX
Between October 2023 and January 2025, US Navy ships fired more defensive missiles at incoming Houthi drones and rockets than they used in three decades prior, exacerbating replenishment challenges.
Fleet at Risk as Navy Struggles to Refill Missile Stores — Military.com
Sales to the US government represented 40% of RTX's total net sales in 2024, excluding foreign military sales through the US government.
rtx-20241231 — SEC.gov
The US aerospace and defense industry lags behind other sectors in demographic representation, including gender breakdown, Black/African American, and Hispanic/Latino employees as of 2023.
On the horizon: workforce trends facing the A&D industry — PwC
The Defense Production Act has been used by presidents historically to intervene in defense production, such as during World War II when President Roosevelt compelled industries to prioritize wartime needs.
Usage of the Defense Production Act throughout history and to combat COVID-19 — Yale School of Management
📰 Source Timeline (1)
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