BAE Systems awarded $473 million for Paladin production
Washington, February 2026 — The U.S. Army has awarded a US $473 million contract to BAE Systems for the production of 40 additional M109A7 Paladin self-propelled howitzer sets, reinforcing U.S. artillery capabilities and sustaining long-term industrial output, BAE Systems informed on 21 January 2026.
The award — issued by the Army Contracting Command Detroit last September — represents the first order under a new five-year contract framework to continue and expand production of the modernized 155 mm artillery system. Each set includes an M109A7 Paladin howitzer alongside its companion M992A3 Carrier Ammunition Tracked vehicle, which supports ammunition resupply operations for artillery units in the field.
According to BAE Systems, the contract also funds technical support packages, post-production refurbishment work, and welding compliance services, indicating a focus on long-term sustainment and readiness as part of the broader artillery modernization effort.
Dan Furber, artillery and combat support program director for BAE Systems’ Combat Mission Systems unit, said the M109A7 Paladin “provides the firepower and operational advantage Soldiers need on the modern battlefield,” noting the platform’s continued relevance and proven performance.
Production of the howitzers will take place across multiple U.S. facilities, including plants in York, Pennsylvania; Elgin, Oklahoma; and Anniston, Alabama, supporting domestic industrial activity and employment.
The Paladin program remains a cornerstone of the Army’s indirect fire capabilities and modernization strategy, ensuring that armored brigade combat teams maintain heavy artillery support alongside M1 Abrams tanks and other armored combat vehicles.
This contract follows a series of awards in recent years as part of the Army’s sustained effort to upgrade and recapitalize its artillery fleet, reflecting the continued emphasis on long-range, highly mobile fire support in potential future conflicts and training environments.■
