The Army has awarded BAE Systems a $535 million production contract for Paladin self-propelled howitzers and its accompanying munitions carrying vehicle, the company announced today.

The M109A7, the upgraded tracked self-propelled howitzer for Armored Brigade Combat Teams, can “shoot and scoot” in under a minute, the company said in the release. It pairs with the M992A3 ammunition carrier.

It’s not clear how many howitzers and resupply vehicles the new award buys or where funds were sourced from. A spokesperson for BAE Systems did not immediately reply to questions from Inside Defense.

“The M109A7 Paladin is a battle-proven platform that delivers what soldiers need to succeed on today’s battlefield,” Dan Furber, vice president of artillery programs, said in a statement. “With its reliable performance and robust industrial base, the Paladin ensures our troops have the firepower and support they can count on when it matters most.”

The contract comes as the Army and lawmakers appear at odds on funding plans for the Paladin Integrated Management program, the procurement line for M109A7.

The service requested just $84 million for PIM in its fiscal year 2027 budget submission; it also zeroed out funding in future years and promised a halt in procurement as it simultaneously requested $697 million to put behind the Mobile Tactical Cannon competition. 

MTC is designed to rapidly acquire a modernized wheeled howitzer solution to take the place of the Army’s M777 towed artillery.

House appropriators, meanwhile, have added $661 million back to the PIM program in their draft FY-27 defense spending bill in a move that signals Congress may not agree that the Paladin is out of the fight just yet.

BAE Systems is investing its own dollars into building out manufacturing capacity and improving capability for the Army, the announcement says.

“These efforts reflect the company’s unwavering commitment to the innovation, reliability and mission success of the M109A7 Paladin program, to meet the evolving needs of the U.S. Army,” the announcement says.