President Donald Trump has issued a warning to defense firms about limits on share repurchases and executive compensation, citing concerns over investments in modernizing weapons production facilities. The move comes as the administration plans to issue an executive order targeting defense company share buybacks, dividends, and executive compensation.
Defense giant RTX has reaffirmed its commitment to paying dividends despite President Donald Trump's criticism of defense contractors' financial practices. CEO Chris Calio stated that the company remains committed to issuing dividends, citing shareholder reliance and decades of quarterly payments.
Poland and Romania scrambled fighter jets after detecting Russian drone strikes along NATO's eastern border. The Polish Operational Command launched quick reaction alert fighter pairs and an airborne early warning aircraft, while Romania detected a drone entering its national airspace amid the attacks.
The Pentagon has completed its initial review of defense contractors, but needs more time to assess before finalizing a list of noncompliant companies that could impact stock buybacks and investor dividends. Defense Secretary Pete Hegseth was directed to work with each company to remediate issues and initiate actions through legal and regulatory channels.
The US Federal Aviation Administration has selected RTX and Indra to replace hundreds of aging air traffic control radar systems currently in service across the US. Many of these systems date back to the 1980s and have exceeded their intended service life.
Breaking Defense reports that seven major defense contractors generated $21.2 billion in free cash flow in 2024, with RTX issuing the most in dividends at $3.2 billion. The data suggests that these companies are prioritizing shareholder returns over investments in production lines, which could impact the president's demands for increased production capacity.
The US Air Force has selected nine companies for an early stage of its Collaborative Combat Aircraft program, awarding contracts worth an unspecified amount. The successful firms will now compete for a prototyping deal, which could be offered to more than one company.