BAE Systems has received a USD 493 million (EUR 452 million) contract to continue producing M109A7 self-propelled howitzers (SPHs) and M992A3 ammunition carriers for the US Army, the company announced on 2 August 2024.

This contract award covers production and delivery between August 2025 and July 2026.

The A7 variant is the most recent upgrade to the M109 SPH platform. According to BAE Systems, it is a “low-risk option for future upgrades while easing the logistics burden and reducing maintenance costs”.

The M109A7 programme, formerly known as the M109A6 Paladin Integrated Management (PIM) programme, enhances the reliability, maintainability, performance, responsiveness and lethality of the combat-proven M109A6 Paladin SPH and M992A2 ammunition carrier while providing increased commonality within the US Army’s Army Brigade Combat Team ABCT formations.

“We are focused on producing and fielding modern artillery capabilities that provide the army with overmatch in range, accuracy, and lethality,” Dan Furber, director of ground vehicle production for BAE Systems’ Combat Mission Systems business, was quoted as saying in a BAE Systems press release. “This contract ensures the ABCT will sustain operations of one of the most survivable indirect-fire support systems for years to come.”

The M109A7 first entered full-rate production in 2020, with this most recent order bringing the total contract value of M109A7s and their supporting systems ordered to almost USD 3 billion.

Prompted by advances in Russian and Chinese artillery capabilities, the US Army plans to upgrade almost 700 Paladin SPHs to the A7 standard.

BAE Systems recently expanded production and support efforts for the M109A7 and M992A3 to Anniston, Alabama, in addition to the work on the vehicles that takes place in York, Pennsylvania; Minneapolis, Minnesota; Sterling Heights, Michigan; Endicott, New York; Elgin, Oklahoma; and Aiken, South Carolina.

BAE Systems has received a contract to continue producing M109A7 SPHs and M992A3 ammunition carriers for the US Army, which plans to upgrade almost 700 Paladin SPHs to the A7 standard. (Photo: BAE Systems)