BAE Systems receives US Army contract to produce more M109A7s and M992A3s

BAE Systems recently received a USD 214 million (EUR 189 million) contract to produce additional sets of Paladin M109A7 self-propelled howitzers (SPHs) and M992A3 ammunition carriers for the US Army, the company announced on 29 May 2025.

The numbers of both vehicle types to be procured under this latest contract were not specified.

The US Army has so far converted around 300 of its original holding of 670 active Paladin M109A6 SPHs to the M109A7 standard and plans to ultimately field 689 M109A7s (there are around 850 more M109A6s in storage).

In March 2024 the US Army halted work on its Extended Range Cannon Artillery (ERCA) prototyping effort, which would have added a longer-range gun to its Paladin M109A7s. The army’s requirement for a longer-range SPH still remains, but is now expected to be an off-the-shelf procurement.

BAE Systems stated that work on this latest M109A7 contract will be performed through to 2028 at sites across the US defence-industrial base, including Aiken, South Carolina; Anniston, Alabama; Elgin, Oklahoma; and York, Pennsylvania.