Tom Arseneault, President and CEO of BAE Systems Inc., outlined the production outlook during the group’s first-half 2026 earnings call. He said both vehicle programmes were contributing to BAE Systems’ record order backlog in Sweden and its Platforms & Services business.
“Our CV90 and BvS10 combat vehicles are in high demand across a number of European customers,” Arseneault said. BAE Systems has invested to significantly expand production capacity and manufacturing capability at Hägglunds, he added.
The investment is translating into a sharp increase in annual vehicle output. Hägglunds expects to build almost 300 combat vehicles in 2026 and more than 400 in 2027, according to Arseneault.
“We are very pleased with the performance at Hägglunds,” Arseneault said. “We will build almost 300 combat vehicles this year. We expect to be up over 400 next year.”
Those production figures do not include a separate five-nation CV90 programme that remains under negotiation. Arseneault said the potential deal could cover more than 400 additional vehicles.
The Swedish businesses are already contributing to stronger results in BAE Systems’ land portfolio. Chief Financial Officer Brad Greve said Platforms & Services sales increased 12% in the first half, including nearly 30% growth from Hägglunds and Bofors on sales to Europe.
Group Chief Executive Charles Woodburn identified Hägglunds as one of the main businesses supporting BAE Systems’ expanding European backlog. He cited Hägglunds, Bofors, MBDA and Eurofighter among the principal pillars of the group’s growth in the region.
The combination of higher output and the potential five-nation CV90 order gives Hägglunds additional growth opportunities beyond the production ramp already planned for 2027. Arseneault described the outlook as “some really good, strong growth potential” on top of the business’s current performance.
