‘Missiles Not Dividends’: Trump Tells Defense Stocks to Ramp Up Production – RTX and LMT Rise

Shares in defense firms Raytheon RTX +0.23% ▲ and Lockheed Martin LMT +1.68% ▲ fired higher today as President Trump called them to the White House to ask for more missiles in the war against Iran.

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Missiles are the Priority

It is understood that Trump will tell defense firms that production of missiles to hit the Iranian regime and to defend its allies against drone attacks should be a bigger priority right now than shareholder payouts.

The aim is to replenish supplies and ensure the U.S. and Israel can continue the war over the next few weeks and even longer if necessary.

Companies including Lockheed Martin and Raytheon, along with key suppliers, have reportedly been invited to attend the meeting.

The call to the White House comes after Pentagon negotiators failed to reach terms with the contractors to ramp up production.

It is obvious why there could be an issue with supply. Since Russia’s invasion of Ukraine in 2022, the U.S. has sent a range of artillery systems, ammunition and anti-tank missiles to Kyiv to help it defend itself. The U.S. has also helped support Israel’s military operations in Gaza.

Crucial Missile Deals

An agreement with Lockheed would be crucial given that back in January it sealed a seven-year deal with the Pentagon to increase annual production capacity for its PAC-3 missile interceptors to 2,000 units a year from about 600 previously. The company has announced it expects to quadruple production of its Terminal High Altitude Area Defense, or THAAD, missile interceptors to 400 per year from 96.

Last year Raytheon sealed a $1.1 billion contract with the U.S. Navy to produce more short-range missiles. The AIM-9X Block II missiles, known as SIDEWINDER, can be used in air-to-air combat or launched from a surface at an enemy target.

It was the largest contract awarded for the program and will increase production to 2,500 missiles per year.

What are the Best Defense Stocks to Buy Now?

We have rounded up the best aerospace and defense stocks to buy now using our TipRanks comparison tool. As can be seen below, Boeing BA -0.85% ▼ has the highest upside according to analysts.

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