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BAE Systems Secures $390M Deal to Produce Bradley A4 Fighting Vehicles

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Key Takeaways

  • BAE Systems won a $390M contract to produce additional Bradley A4 fighting vehicles.
  • Work is underway, with initial Bradley A4 deliveries scheduled for completion by October 2026.
  • The Bradley A4 adds advanced electronics and improved survivability for diverse combat operations.

BAE Systems plc ((BAESY - Free Report) ) clinched a deal worth $390 million for the production of additional Bradley A4 fighting vehicles for the U.S. Army. The Bradley A4 vehicles will be delivered to the Army as the modern replacement to former variants, greatly improving lethality, survivability and safety.

The work on this contract is underway, with initial vehicle deliveries scheduled for completion by October 2026.

Significance of BAE Systems’ Bradley Fighting Vehicle

BAE Systems remains a leading supplier of armored combat vehicles to the U.S. Army and allied nations, backed by decades of experience in designing, producing and integrating systems for the Bradley Family of Vehicles. The company has delivered numerous upgrades tailored to evolving mission needs and customer requirements.

The Bradley Fighting Vehicle is a proven, combat-tested platform that offers strong survivability, mobility and firepower across critical missions. The latest variant, the Bradley A4, is built for endurance and consistency, reducing logistical burdens while enhancing battlefield performance in close-combat, urban and open-terrain operations.

Its advanced digital electronics provide superior situational awareness, networked communications and seamless coordination within the Armored Brigade Combat Team. These features boost troop protection and strengthen mission success across all terrains and threat environments.

BAESY offers a broad range of Bradley Fighting Vehicles, including the Bradley M2A4E1, Bradley A3, Bradley A2 ODS-SA, Bradley A2 ODS and Bradley M7 BFIST SA. This product depth strengthens BAE Systems’ position in the defense market, enabling it to secure multiple contracts due to its proven expertise in Bradley production.

Growth Trajectory for BAESY and Other Defense Stocks

Rising security threats are pushing nations to bolster their military forces, driving significant investment in armored vehicles, which remain essential and highly adaptable assets for ground operations.

Per a report from the Mordor Intelligence firm, the armored vehicle market is likely to register a CAGR of 5.66% during 2025-2030. These strong market trends create substantial growth opportunities for BAE Systems, which holds a highly competitive and profitable position in the armored vehicle segment.

Other defense majors that are likely to reap the benefits of the expanding armored vehicle market are discussed below:

Textron Inc. ((TXT - Free Report) ): The company designs, manufactures and sustains next-generation armored combat vehicles for the U.S. military, allied forces, special operations units, law enforcement and civilian agencies worldwide. Its COMMANDO family of vehicles delivers a proven blend of lethality, protection, mobility and durability, featuring a modern design that enhances troop safety while maintaining interior comfort during missions.

TXT boasts a long-term (three to five years) earnings growth rate of 10.03%. The Zacks Consensus Estimate for 2025 sales stands at $14.80 billion, which calls for an increase of 8.1%.

RTX Corporation ((RTX - Free Report) ): The company’s business unit, Raytheon, is working to meet the U.S. Army’s requirement for the next-generation XM30 combat vehicle. The XM30 is a modern, tracked armored platform designed for future battlefield challenges, offering superior troop protection and advanced technologies to help soldiers stay ahead of emerging threats.

RTX boasts a long-term earnings growth rate of 10.35%. The Zacks Consensus Estimate for 2025 sales stands at $87.04 billion, which implies a jump of 7.8%.

General Dynamics Corp. ((GD - Free Report) ): The company’s Land Systems division is a global leader in the design, engineering, production, and sustainment of both tracked and wheeled military vehicles. Its M10 Booker is a highly lethal, survivable and mobile direct-fire combat vehicle that blends advanced technologies with proven battlefield design to counter threats across the multi-domain battlespace.

GD has a long-term earnings growth rate of 12.81%. The Zacks Consensus Estimate for 2025 sales stands at $51.97 billion, which indicates a rise of 8.9%.

BAESY Stock Price Movement

In the past year, BAE Systems shares have risen 32.7% compared with the industry’s growth of 12.8%.

Zacks Investment Research
Image Source: Zacks Investment Research

BAESY’s Zacks Rank

BAE Systems currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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