Trump said talks with defense firms will focus on accelerating production and shifting capital toward manufacturing expansion.
- Trump said defense contractors must accelerate ship, aircraft and equipment output to meet U.S. and allied demand.
- He criticized firms for prioritizing dividends, buybacks and executive pay over factory expansion and workforce investment.
- The administration plans to push more capital toward U.S. shipyards, production lines and defense manufacturing capacity.
Shares of GE Aerospace and Boeing fell in after-hours trading on Monday after U.S. President Donald Trump said he plans to confront major defense contractors over slow military production, while signaling tighter scrutiny of buybacks, capital spending and executive pay.
Meanwhile, shares of Huntington Ingalls Industries, Lockheed Martin, General Dynamics and RTX rose after-hours.
Defense Production Delays Under Scrutiny
Speaking at an event announcing plans for new naval construction, Trump said delays in delivering warships, fighter jets and helicopters have stretched to several years, leaving allies waiting longer than expected for equipment. He said production schedules need to accelerate.
Trump said the upcoming meetings with defense companies would focus on production timelines, capital expenditures and how firms allocate cash. He said companies should prioritize expanding factories, shipyards and production lines.
Capital Allocation And Executive Pay
Trump criticized defense companies for paying large dividends, conducting share buybacks and awarding what he described as high levels of executive compensation while citing production constraints. He said companies that pay their executives tens of millions of dollars a year shouldn't be returning cash to shareholders if that money could be used to boost manufacturing capacity.
He said he wants defense contractors to funnel more spending to plant construction, equipment and workforce expansion so weapons systems can be delivered more rapidly.
Battleship Construction Plan
Trump approved a plan for the Navy to begin construction of two new battleships, which he said would be the first such vessels built by the U.S. since 1994. He said the ships would be constructed in U.S. shipyards and would create thousands of American jobs.
Trump said the U.S. Navy would lead the design of the ships alongside industry partners.
Beyond battleships, Trump said the administration is moving ahead with additional production of submarines, aircraft carriers and fighter jets. He said U.S. military technology remains advanced but manufacturing speed needs to improve.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment for iShares US Aerospace & Defense ETF (ITA) was ‘bullish’ amid ‘high’ message volume.
The ITA ETF has risen 2.6% so far in 2025.
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