Defense Giants Defy Executive Order, Prioritize Shareholder Returns
Despite President Trump’s criticism of defense contractors for prioritizing shareholder returns over investments in production capacity, RTX and Northrop Grumman have announced plans to continue paying dividends to their shareholders. RTX CEO Chris Calio and Northrop Grumman CEO Kathy Warden expressed commitment to their dividend policies, citing the importance of maintaining investor confidence. The companies also outlined plans to increase capital expenditures in 2026, with RTX aiming to spend $3.1 billion and Northrop Grumman targeting $1.65 billion. This development was first reported by Breaking Defense.