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

The US Army has awarded BAE Systems a $473 million contract to produce 40 additional M109A7 Paladin self-propelled howitzer sets, including M992A3 ammunition carriers. The deal reinforces Army efforts to maintain heavy artillery strength in armored brigade combat teams while keeping the domestic industrial base active and compliant.

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.
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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)

The M109A7 Paladin Self-Propelled Howitzer represents the most extensive redesign of the M109 family since its original introduction during the Cold War. While the weapon system retains the 155 mm cannon architecture of the M109A6, the A7 variant introduces a completely new chassis, cab, and automotive backbone. These elements are directly derived from the M2 and M3 Bradley Infantry Fighting Vehicle family, a deliberate choice aimed at increasing commonality across US Army heavy formations. By aligning engines, transmissions, suspension components, and steering systems with those already in service, the Army reduces its logistical footprint and improves sustainment in prolonged deployments.

The main armament consists of a 39-caliber 155 mm M284 cannon mounted on the M182A1 gun cradle. With conventional unassisted high explosive ammunition, effective firing ranges reach approximately 24 kilometers, extending to around 30 kilometers with rocket-assisted projectiles. The system is fully compatible with the M982 Excalibur precision-guided munition, a Global Positioning System-guided round capable of achieving accuracy reportedly within two meters under optimal conditions. This level of precision allows artillery units to engage point targets with fewer rounds, supporting commanders operating under restrictive rules of engagement or in densely populated areas.

One of the defining technical shifts of the M109A7 lies in its gun drive architecture. Legacy hydraulic elevation and azimuth systems have been replaced by modern electric drives, incorporating technologies initially developed for the cancelled XM2001 Crusader and XM1203 Non-Line-of-Sight Cannon programs. This transition significantly reduces maintenance demands and improves system reliability, while retaining manual backup controls to ensure continued operation under degraded conditions. Projectile loading is handled by a full-stroke hydraulic rammer, with optional semi-automatic functionality, supporting sustained rates of fire without excessive crew workload.

Mobility and onboard power generation have been reworked to support both current and future battlefield requirements. The howitzer is powered by a 600-horsepower Cummins diesel engine, identical to that used on Bradley vehicles, paired with an upgraded transmission and torsion bar suspension. A redesigned electrical architecture converts engine output into up to 70 kilowatts of power distributed through a 600-volt and 28-volt direct current system. This surplus supports digital fire control, onboard diagnostics, climate management, and potential future sensors or communications without external generators. With a combat weight of roughly 35.4 tonnes, the M109A7 reaches road speeds of up to 61 kilometers per hour and maintains cross-country mobility aligned with armored maneuver units.

Survivability improvements are integrated throughout the platform. The all-welded aluminum hull and turret incorporate Kevlar anti-spall liners, enhanced applied armor, and provisions for add-on and underbelly protection kits. An automatic fire extinguishing system, nuclear, biological, and chemical protection, and a gunner protection kit are standard features. A roof-mounted 12.7 mm M2 heavy machine gun, optionally fitted to a remotely operated weapon station, provides close-in defense. Combined with shoot-and-scoot capability, these measures are designed to reduce vulnerability to counter-battery fire and battlefield threats.

The M109A7 operates alongside the M992A3 Carrier Ammunition Tracked vehicle, which transports up to 95 rounds of 155 mm ammunition under armor. Ammunition is transferred via a conveyor system without requiring crew members to dismount, typically away from firing positions to limit exposure. This pairing enables sustained fire missions during high-tempo operations while preserving crew safety.

Operationally, the Paladin A7 anchors the US Army cannon artillery within a networked fires architecture. Integrated digital fire control systems and Blue Force Tracker connectivity support rapid mission processing and coordination with maneuver commanders. The platform balances protection, mobility, and precision, allowing it to support armored advances, conduct suppression and neutralization missions, and deliver accurate fires in contested environments.

At the geopolitical level, continued investment in Paladin production reflects Washington’s intent to maintain credible conventional deterrence amid intensifying great power competition. As potential adversaries expand counter-battery radars and long-range fires, sustaining a modern self-propelled artillery fleet reassures allies and partners of US land combat readiness. The program also carries international implications, with partners such as Taiwan selecting the same system, reinforcing interoperability and highlighting the enduring role of resilient tube artillery in regional security calculations.

Written By Erwan Halna du Fretay - Defense Analyst, Army Recognition Group

Erwan Halna du Fretay is a graduate of a Master’s degree in International Relations and has experience in the study of conflicts and global arms transfers. His research interests lie in security and strategic studies, particularly the dynamics of the defense industry, the evolution of military technologies, and the strategic transformation of armed forces.