The US Armed Forces have signed a contract with BAE Systems to produce additional 155-mm M776 barrels for M777A2 howitzers.
The new deal is valued at $145.83 million, bringing the total of recent contracts to $462.77 million. The contract is scheduled for completion by March 31, 2031.
It includes a gradual increase in production to meet growing demand for M777 artillery systems. Pentagon budget documents from December 17, 2024, plan to raise monthly barrel output from 10 to 30 units.
The figures cover both M776 barrels for the M777 and M284 barrels for M109 self-propelled howitzers. Separate contracts for key M777 structural components were signed with BAE Systems in January 2024 and April 2025. Production takes place at BAE Systems’ facility in Sheffield, UK.
Since 2022, the US has delivered 108 M777 howitzers to Ukraine. Heavy use has accelerated barrel wear, prompting the expansion of production capacities.
At the same time, the US Army ended the ERCA M1299 program in 2024 due to technical problems, including critical barrel wear during operation, which affected the program’s viability.
As a result, focus shifted to supporting and expanding the M777 howitzer programs. Last year, the US approved a $203 million support package for Ukrainian M777 units.
