Tom Arseneault, President and CEO of BAE Systems Inc., discussed the production increase during the company’s second-quarter and first-half 2026 earnings call. He cited Archer, Tridon and 3P medium-calibre ammunition among the products seeing strong demand.
“In light of the increasingly complex global security situation, Bofors is experiencing strong demand for artillery and munitions like Archer, Tridon, and 3P medium-caliber ammunition,” Arseneault said. He added that production rates had “already grown by a factor of 3-4 across several product areas”.
BAE Systems is adding manufacturing capacity to support the higher output. Arseneault said Bofors was acquiring new facilities and expanding production lines.
The company is also strengthening its supply chain in Sweden. BAE Systems completed the acquisition of a supplier of precision mechanics and component machining products in May.
“This acquisition strengthens our supply chain and supports Bofors’ increased delivery of core systems,” Arseneault said. The acquired business is being integrated into Bofors.
Arseneault returned to the artillery business during the question-and-answer session. He said Bofors was performing strongly and that demand for artillery and munitions continued to grow.
He also pointed to the company’s position in Eastern Europe and the Nordic region. Those markets are supporting Bofors’ current order and production activity.
BAE Systems Group Chief Executive Charles Woodburn also identified Bofors as an important contributor to the company’s European backlog. He cited the business alongside Hägglunds and MBDA among the main drivers of growth in Europe.
