BAE Systems PLC (LSE:BA.) has secured another US$493 million (£388 million) to supply artillery weapons for the US Army.
This takes the total value of the contract, which relates to M109A7 howitzers, to almost US$3 billion, according to BAE.
“We are focused on producing and fielding modern artillery capabilities that provide the army with overmatch,” BAE ground vehicle production director Dan Furber commented.
BAE added the contract was set to be fulfilled between August 2025 and July 2026 after production efforts were recently expanded throughout the company’s sites in the US.
Last week, BAE raised full-year earnings and sales guidance as it reported a 13% increase in half-year underlying pre-tax earnings to £1.4 billion.
Fulled by heightened geopolitical tensions, this came as sales rose across all of BAE’s electronic systems, platforms and services, air, maritime, and cyber segments.
BAE shares were up 0.8% at 1,279p on Tuesday.