BAE Systems (LON: BA.) Wins U.S. Army Vehicle Protection Program Contract

BAE Systems (LON: BA.) won a contract from the U.S. Army to supply vehicle protection systems, the defense contractor said May 27, 2026. The award, with an initial ceiling of $450 million, tasks the company with developing and integrating active protection systems on Army ground combat vehicles to defeat rocket-propelled grenades and anti-tank missiles. The five-year agreement includes options that could extend the work through 2031. Deliveries of prototype systems are expected to begin in 2027, with full-rate production decisions to follow. The program reflects the Pentagon’s accelerating push to equip armored brigades with layered defenses as modern battlefield threats proliferate. London-listed shares of BAE Systems were little changed in afternoon trading. The contract adds to BAE’s growing order book in vehicle survivability, a sector the company has targeted for growth amid rising global defense budgets.