YORK, Pennsylvania — Feb. 25, 2026 : BAE Systems has been awarded a U.S. Army contract valued at more than $500 million for the production of additional M109A7 Paladin Self-Propelled Howitzers and M992A3 Ammunition Carriers. The contract was finalized in December 2025 and publicly announced this week.
The award supports operational requirements for the U.S. Army’s Armored Brigade Combat Teams (ABCTs) and continues the service’s modernization of its tracked artillery fleet.
Platform Overview
The M109A7 is the current production variant of the M109 family of 155mm self-propelled howitzers. It is designed to deliver indirect fire support in conventional and high-intensity combat operations.
The system incorporates a modernized architecture built around a digital backbone. It features advanced digital fire control systems intended to improve targeting precision, responsiveness, and overall lethality. The upgraded system architecture enables integration with contemporary battlefield command-and-control networks.
The M109A7 is built on a chassis common with the Bradley Fighting Vehicle platform. It is powered by a 675-horsepower engine and can reach a maximum speed of approximately 38 miles per hour (61 kilometers per hour). The vehicle has a combat weight ranging between 35 and 38 tons, with a specified maximum weight of 35,380 kilograms.
Dimensionally, the howitzer measures approximately 9.7 meters in length, 3.9 meters in width, and 3.3 meters in height. It is operated by a crew of four personnel and is capable of firing up to four rounds per minute.
The system offers a maximum firing range between 22 and 30 kilometers, depending on the type of ammunition employed.
M992A3 Ammunition Carrier
The contract also includes production of the M992A3 Ammunition Carrier, which operates in conjunction with the M109A7. The M992A3 is designed to transport, manage, and resupply 155mm artillery ammunition during combat operations. It enables sustained fire missions by providing logistical support directly alongside the howitzer units in the field.
Production Locations
Manufacturing and assembly of the M109A7 and M992A3 systems will take place across multiple BAE Systems facilities in the United States, including:
- York, Pennsylvania
- Elgin, Oklahoma
- Anniston, Alabama
The York facility serves as a primary production site for the Paladin program.
Program Continuity and Prior Awards
The latest $500 million contract follows a $473 million award issued to BAE Systems in January 2026 for the production of 40 additional M109A7 sets and associated ammunition carriers. In May 2024, the company received a separate $423 million contract for self-propelled howitzers under the same program.
These successive awards reflect continued procurement of the M109A7 platform as the U.S. Army replaces older variants within the M109 fleet.
Dan Furber, Program Director for Artillery and Combat Support within BAE Systems’ Combat Mission Systems business, stated that the M109A7 is designed to provide operational capability for current and future battlefield requirements and that the company continues to support the U.S. Army and allied customers under the Paladin program.
The M109A7 remains the primary tracked 155mm self-propelled artillery system in U.S. Army production, supporting Armored Brigade Combat Teams with mobile, protected indirect fire capability.
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