Northrop Grumman Corp. (NOC) shares took a hit Wednesday after President Donald Trump went after defense contractors on Truth Social, criticizing everything from executive pay to production speed to how companies spend their cash.

What Trump Said: The president didn't mince words. He's calling for defense firms to immediately stop paying dividends and buying back stock until they ramp up investment in manufacturing infrastructure and get equipment delivered faster.

Trump accused defense companies of prioritizing "massive Dividends to their Shareholders and massive Stock Buybacks, at the expense and detriment of investing in Plants and Equipment," warning that "This situation will no longer be allowed or tolerated!"

But he didn't stop at capital allocation. Trump also took aim at executive compensation, calling pay packages "exorbitant and unjustifiable given how slowly these Companies are delivering vital Equipment to our Military and our Allies." His solution? Cap executive pay at $5 million until contractors build new production facilities and improve maintenance operations.

"Defense Companies are not producing our Great Military Equipment rapidly enough and, once produced, not maintaining it properly or quickly," Trump stated. "From this moment forward, these Executives must build NEW and MODERN Production Plants."

The message was clear: defense firms won't be allowed to return cash to shareholders until they fix their production problems. Trump wants those funds redirected toward expanding manufacturing capacity rather than relying on banks or federal support.

Market Reaction: Northrop Grumman shares were down 5.61% at $576.37 at the time of publication Wednesday.