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Lockheed Martin CEO Jim Taiclet says the company is investing billions to quadruple production of its Terminal High Altitude Area Defense (THAAD) missile defense system as the Trump administration urges defense contractors to prioritize weapons manufacturing over Wall Street interests.
“We heard President Trump’s guidance loud and clear,” Taiclet told FOX Business on Thursday, referencing the president’s warning against defense companies prioritizing stock buybacks over weapons production.
Taiclet said Lockheed invested $3.6 billion in capital spending and independent research and development in 2025 and plans to raise that figure to $5 billion in 2026 — a 35% increase he said is intended to answer President Trump’s call.
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“That’s Lockheed Martin’s strategy,” Taiclet said, adding that the increased investment is aimed at prioritizing internal growth and supporting the Department of War’s goals.
The comments came as Lockheed announced plans to quadruple THAAD production, boosting annual output from about 96 units to 400 over the next three years, and broke ground on a new munitions acceleration center in Arkansas to meet surging defense demand.
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Lockheed Martin shares rose 6% after the company reported earnings and updated its financial guidance.
Trump has publicly warned defense contractors against diverting cash to investors rather than weapons production.
“Defense contractors are currently issuing massive dividends to their shareholders and massive stock buybacks, at the expense and detriment of investing in plants and equipment,” the president wrote in a recent Truth Social post.
“This situation will no longer be allowed or tolerated!”
The investment push also follows a landmark seven-year agreement with the Department of War to more than triple production of PAC-3 MSE interceptors to about 2,000 missiles annually.
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