Image: BAE Systems
BAE Systems has secured a contract worth more than $500 million to manufacture additional M109A7 Paladin Self-Propelled Howitzers and M992A3 Ammunition Carriers for the U.S. Army.
The U.S. Army awarded the contract in December 2025, strengthening its artillery capacity across Armored Brigade Combat Teams (ABCTs). The deal underscores continued investment in proven indirect fire platforms as land warfare demands grow more complex.
Bolstering Army Firepower
The M109A7 Paladin is among the most capable self-propelled howitzer systems in the Western arsenal. Despite being one of the lightest tracked artillery platforms on the battlefield, it delivers substantial lethality and survivability. Engineers designed the vehicle with an adaptable chassis and next-generation systems to perform across diverse terrain and operational conditions.
Dan Furber, program director for Artillery and Combat Support within BAE Systems’ Combat Mission Systems division, highlighted the platform’s battlefield relevance. “The M109A7 Paladin Self-Propelled Howitzer is designed to provide a significant operational advantage on today’s battlefields and into the future,” he said, according to 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.”
Digital Backbone Drives Lethality
A key feature of the M109A7 is its advanced digital fire control architecture — referred to internally as the “digital backbone.” This suite of integrated systems enhances targeting precision, situational awareness, and crew responsiveness. It allows warfighters to deliver effective indirect fire support in rapidly evolving threat environments.
The platform’s modern architecture also improves survivability. Crews benefit from enhanced protection and faster engagement cycles. These capabilities position the Paladin as a long-term asset rather than a near-term stopgap for Army artillery requirements.
Industrial Base and Production Footprint
BAE Systems produces the M109A7 across three U.S. facilities — York, Pennsylvania; Elgin, Oklahoma; and Anniston, Alabama. The distributed production model supports American defence manufacturing jobs and sustains a resilient domestic supply chain.
The contract reinforces BAE Systems’ role as the Army’s primary artillery partner. The company has signalled continued commitment to the Paladin programme, focusing on delivering mission-ready systems to soldiers operating in challenging conditions.
Strategic Context
The award arrives as NATO allies reassess artillery stockpiles following sustained demand generated by the conflict in Ukraine. The Paladin has featured prominently in allied capability assessments, with several partner nations operating variants of the platform. Sustained U.S. procurement signals confidence in the M109 family’s relevance well into the coming decade.
For Armored Brigade Combat Teams specifically, reliable self-propelled howitzer capacity is central to combined arms operations. The M992A3 Ammunition Carrier — also covered under the contract — ensures Paladin units maintain sustained rates of fire in high-intensity engagements.
BAE Systems did not disclose the full production timeline or the total number of vehicles covered under the award.
Source: BAE Systems Press Release
