BAE Systems logo. BAE secured a U.S. Army contract to produce M109A7 Paladin howitzers and M992A3 ammunition carriers.

BAE Systems Books $500M Army Contract for M109A7 Paladin Howitzers

BAE Systems has received a U.S. Army contract worth more than $500 million to produce additional M109A7 Paladin self-propelled howitzers and M992A3 ammunition carriers for the service branch.

BAE Systems Books $500M Army Contract for M109A7 Paladin Howitzers

As the Army advances major modernization efforts, including continued investment in platforms like M109A7 Paladin, senior leaders and industry executives will convene at the Potomac Officers Club’s 2026 Army Summit on June 18. The forum offers an opportunity to hear directly from Army and defense officials about the service’s priorities and initiatives. Sign up today to reserve your spot and join the conversation.

Awarded in December, the contract will support the Army’s efforts to meet operational requirements for its armored brigade combat teams, or ABCTs, the company said Tuesday.

What Did BAE Program Director Dan Furber Say About Paladin?

“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 at BAE’s combat mission systems business.

Furber added that the system’s performance demonstrates its value in the field and noted that the company continues to support the Army and allied forces in deploying the capability.

What Is M109A7 Paladin?

M109A7 Paladin is a tracked self-propelled howitzer system designed to enable warfighters to deliver indirect fire support in an evolving threat environment.

The system incorporates an adaptable chassis and a modernized architecture built around advanced digital fire control systems, also known as the “digital backbone.” These integrated technologies are designed to improve targeting precision, operational responsiveness and survivability in complex threat environments.

BAE manufactures M109A7 at facilities in York, Pennsylvania; Anniston, Alabama; and Elgin, Oklahoma.

What Are the Previous Army Paladin Contracts Awarded to BAE?

BAE Systems has secured several U.S. Army awards associated with the Paladin artillery family in recent years.

In January, BAE received a $473 million contract for additional M109A7 Paladin howitzers and associated ammunition carriers. In May 2024, the company secured a $423 million Army contract to produce self-propelled howitzers.

Beyond production awards, the company and the Army entered into a cooperative research and development agreement to advance the M109-52 prototype as an upgrade to the M109A7 Paladin system.

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