Share Repurchases

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.

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.