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Lockheed Martin CEO Jim Taiclet discusses the new Pentagon contract, missile production and the defense giant’s growth strategy on “Mornings with Maria.”
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 Guide loud and clear,” Taiclet told FOX Business on Thursday, referring to the president’s warning against defense companies prioritizing stock buybacks over arms production.
Taiclet said Lockheed invested $3.6 billion in capital expenditures and independent research and development in 2025 and plans to increase that number to $5 billion in 2026, a 35 percent increase that he said is intended to respond to President Trump’s call.
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A GMLRS is fired from Lockheed Martin’s HIMARS launcher in this undated photo. (Courtesy: US Army)
“This is Lockheed Martin’s strategy,” Taiclet said, adding that the increased investment is aimed at prioritizing internal growth and supporting the War Department’s goals.
The comments came as Lockheed announced plans to quadruple production of THAAD, increasing annual output from about 96 units to 400 over the next three years, and began building new munitions acceleration center in Arkansas to meet the growing defense demand.
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This rendered image from Lockheed Martin shows a THAAD missile defense system. (Courtesy: MFC Product Photos)
Shares of Lockheed Martin rose 6% after the company reported earnings and updated its financial guidance.
Trump has publicly warned defense contractors not to divert cash to investors instead of weapons production.
“Defense contractors are currently issuing massive dividends to their shareholders and massive stock awards, at the expense and detriment of investing in plant and equipment,” the president wrote in a recent Truth Social post.
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“This situation will no longer be allowed or tolerated!”
The investment push also follows a landmark seven-year deal with the War Department to more than triple production of PAC-3 MSE interceptors to about 2,000 missiles annually.
