05:59 AM EST, 12/17/2025 (MT Newswires) -- The Trump administration is planning an executive order that could restrict dividends, buybacks and executive compensation for defense contractors whose projects are over-budget and delayed, Reuters reported late Tuesday, citing three sources.

If finalised, the measure could affect shares of major firms including Lockheed Martin ( LMT ) , Northrop Grumman ( NOC ) , General Dynamics ( GD ) , and Boeing ( BA ) .

The report said that Trump and the Pentagon have criticized the defense industry for high costs and slow production, promising changes to make war equipment manufacturing more efficient.

The proposed order is linked to a Treasury Department initiative although industry groups have been on high alert about the closely held proposal, two sources told Reuters.

Lockheed Martin ( LMT ), Northrop Grumman ( NOC ), General Dynamics ( GD ), and Boeing ( BA ) did not immediately respond to MT Newswires' request for comment on the potential executive order.

A White House official told Reuters that the matter remains speculative until an official announcement is made.

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