Trump to meet defense contractors amid Iran peace talks

President Trump is set to convene with leaders from prominent U.S. defense companies on Wednesday. This meeting takes place as the administration continues peace negotiations with Iran. The gathering follows a March 6 White House session involving executives from Lockheed Martin, RTX, BAE Systems, Boeing, Honeywell Aerospace, L3Harris, and Northrop Grumman.

The Trump administration has been urging defense contractors to prioritize production and domestic manufacturing capabilities over returns to shareholders. A source familiar with the meetings indicated that the president wants the industry to fulfill existing contracts and accelerate production for the Department of War.

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Most of the defense industry received the message loud and clear from the president to deliver on existing contracts and increase and speed production to support the Department of War.

In January, President Trump signed an executive order aimed at limiting defense contractor dividend payments and stock buybacks. Congress is also considering similar legislation. While Northrop Grumman and RTX increased their shareholder dividends in May, and RTX and Lockheed Martin have paused stock buybacks, Northrop Grumman offered a modest buyback earlier this year. Boeing has not issued a dividend or engaged in share buybacks since 2020. The source stated that the president will seek answers from Northrop Grumman during Wednesday's meeting.

Earlier in June, President Trump invoked the Defense Production Act to boost weapons production. He cited "systemic constraints in the munitions industrial base," including limited capacity, fragile supply chains, long-lead dependencies, and production bottlenecks. In a June 11 memo to Defense Secretary Pete Hegseth, the president wrote that such shortfalls "may impair the ability of the United States to produce, sustain, and expand the availability of munitions, missiles, and equipment required for the national defense."

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may impair the ability of the United States to produce, sustain, and expand the availability of munitions, missiles, and equipment required for the national defense.