$500 million contract: BAE Systems to produce more M109A7 Paladin self-propelled howitzers for U.S. Army

By Martin Chomsky (Defence Industry Europe)

BAE Systems has been awarded a contract valued at more than $500 million to produce additional M109A7 Paladin Self-Propelled Howitzers and M992A3 Ammunition Carriers for the U.S. Army. The award was made in December 2025 and supports continued modernization of the Army’s artillery capabilities.
Photo: U.S. Army.

BAE Systems has been awarded a contract valued at more than $500 million to produce additional M109A7 Paladin Self-Propelled Howitzers and M992A3 Ammunition Carriers for the U.S. Army. The award was made in December 2025 and supports continued modernization of the Army’s artillery capabilities.

 

The contract is intended to strengthen the Army’s ability to meet critical operational requirements, particularly for its Armored Brigade Combat Teams. BAE Systems said it remains committed to the future of the Paladin program, ensuring Soldiers are equipped with mission-ready artillery solutions in challenging terrains and conditions.

“The M109A7 Paladin Self-Propelled Howitzer is designed to provide a significant operational advantage on today’s battlefields and into the future,” said Dan Furber, program director for Artillery and Combat Support for the Combat Mission Systems business at BAE Systems. “Its proven performance demonstrates its value on the field, and we’re proud to support the U.S. Army and its allies in leveraging this critical capability.”

 



 

The M109A7 is among the lightest tracked self-propelled howitzer systems currently in service and is engineered with an adaptable chassis and next-generation capabilities. The platform integrates advanced technology and a modern architecture, including digital fire control systems referred to as the “digital backbone.”

According to the company, these capabilities enhance lethality, survivability, and responsiveness on the battlefield. They are designed to enable warfighters to deliver precise and effective indirect fire support in a rapidly evolving threat environment.

Production of the M109A7 takes place in York, Pennsylvania; Elgin, Oklahoma; and Anniston, Alabama. The contract continues the company’s role in supporting U.S. Army artillery modernization efforts across multiple manufacturing sites.

 

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