The four largest US defense contractors, Lockheed Martin, RTX, Northrop Grumman, and General Dynamics, collectively returned 2.7 billion dollars to shareholders in Q1 2026, down from 4.2 billion dollars in the same quarter of 2025, a 36% decline. President Trump’s executive order « Prioritizing the Warfighter in Defense Contracting » signed on January 7, 2026 bans underperforming contractors from stock buybacks and dividend payments until they meet delivery benchmarks. The measure, enforceable under the Defense Production Act, redirected approximately 1.5 billion dollars from shareholder returns toward production capacity. Going forward, executive compensation will be tied to delivery performance rather than short-term financial results.
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