BAE Receives $493M US Army Contract to Produce Additional M109A7 Self-Propelled Howitzers and M992A3 Ammunition Carriers

BAE Systems received a $493 million contract to continue producing M109A7 Self-Propelled Howitzers (SPH) and M992A3 Ammunition Carriers for the U.S. Army.

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

The M109A7 provides reliable, evolutionary capabilities for the Army’s Armored Brigade Combat Team (ABCT).   The M109A7 ensures Soldiers have the most modern artillery capabilities that are highly survivable, maintainable, proven, and responsive on the battlefield.

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

BAE Systems remains committed to the future of the M109A7 program, ensuring that Soldiers are equipped with mission-ready artillery solutions in even the most challenging terrains or conditions. While being one of the lightest tracked SPH systems in the battlefield, the vehicle is engineered with adaptable chassis and next-generation technology.

Purpose-built with commonality across the ABCT formation, the M109A7 is a low-risk option for future upgrades while easing the logistics burden and reducing maintenance costs. M109A7’s commonality also benefits allied nations who are already operating U.S. military systems by preserving interoperability through support, maneuver, and transportation characteristics.

The M109A7 entered full rate production in 2020. This most recent order brings the total contract value to almost $3 billion.

BAE Systems recently expanded production and support efforts for M109A7 and M992A3 to Anniston, Alabama, in addition to the efforts completed across the company’s robust industrial network in York, Pennsylvania; Minneapolis, Minnesota; Sterling Heights, Michigan; Endicott, New York; Elgin, Oklahoma; and Aiken, South Carolina.