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U.S. Army Orders 40 M109A7 Paladin Howitzers in $473M BAE Systems Contract

BAE Systems disclosed on 21 January 2026 that the US Army has confirmed a $473 million contract for the production of 40 additional M109A7 Paladin self-propelled howitzer sets, along with the associated M992A3 Carrier Ammunition Tracked vehicles. The award, announced through the company’s Combat Mission Systems business line and updated later the same day, reflects the Army’s continued focus on sustaining heavy artillery capability within armored brigade combat teams rather than expanding overall fleet size. Beyond new vehicle production, the contract also funds technical support packages, post-production refurbishment, and welding compliance activities, signaling an emphasis on readiness, safety, and long-term sustainment. Read more. 
A US Army M109A7 Paladin self-propelled howitzer reflects ongoing production under a $473 million BAE Systems contract to sustain modern armored artillery firepower. (Picture source: US DoD)

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