UK-based defense giant BAE Systems has been awarded a contract worth over $500 million to deliver additional M109A7 Paladin Self-Propelled Howitzers (SPH) and M992A3 Ammunition Carrier Vehicles to the U.S. Army. The contract, issued in December 2025, is designed to enhance the operational capabilities of the Army’s Armored Brigade Combat Teams (ABCTs), reinforcing their indirect fire support capacity on modern battlefields.

The M109A7 represents the latest evolution of the proven M109 artillery family. Equipped with an advanced digital architecture—often referred to as a “digital backbone”—the system integrates a modern fire control system that significantly improves targeting speed, accuracy, and battlefield coordination. These upgrades allow warfighters to deliver precise and responsive indirect fire in rapidly changing operational environments, increasing lethality, survivability, and overall mission effectiveness.

Operated by a four-person crew, the M109A7 measures 9.7 meters in length, 3.9 meters in width, and 3.3 meters in height. With a maximum combat weight of approximately 35,380 kilograms, it remains one of the lighter tracked self-propelled howitzer systems in its class. Its adaptable chassis and upgraded power systems provide improved mobility, sustainment, and compatibility with next-generation battlefield technologies.

Production of the M109A7 systems will take place at facilities located in York, Pennsylvania; Elgin, Oklahoma; and Anniston, Alabama. According to company officials, the Paladin platform is specifically engineered to provide a decisive operational advantage in both current and future combat scenarios. Notably, just last month, BAE Systems also received a separate $473 million contract from the U.S. Army Contracting Command in Detroit to manufacture an additional 40 M109A7 Paladin sets.

These developments underline the U.S. Army’s ongoing modernization efforts aimed at strengthening heavy armored formations and ensuring dominance in high-intensity conflict environments.