Huntsville Firm Secures $137 Million U.S. Army Contract

Huntsville, Alabama, February 10, 2026

BAE Systems, a defense contractor in Huntsville, Alabama, has been awarded a $137 million Foreign Military Sales contract from the U.S. Army for the AN/AAR-57 Common Missile Warning Systems. This contract highlights Huntsville’s significant role in national security and showcases the city’s innovative defense technology industry. The deal not only promotes job creation but also strengthens the local economy by reinforcing Alabama’s position as a pivotal player in the defense sector.

Huntsville, Alabama’s innovation ecosystem continues to thrive, with a local defense contractor recently securing a substantial U.S. Army contract. This significant development underscores the city’s pivotal role in national security and its sustained contribution to global defense capabilities, fostering both job creation and technological advancement within the region. Such contracts are a testament to the dedication of local entrepreneurs and a business environment that encourages growth through cutting-edge research and development.

The consistent success of Huntsville-based firms in securing major defense contracts highlights the economic benefits of robust private investment and a climate that allows for streamlined operations and specialized expertise. This recent award further solidifies Alabama’s standing as a cornerstone of the nation’s defense industry, reinforcing the importance of skilled workforces and advanced manufacturing in driving statewide economic growth.

Huntsville Firm Secures $137 Million U.S. Army Contract

BAE Systems, a prominent defense contractor with significant operations in Huntsville, Alabama, has been awarded Foreign Military Sales (FMS) contracts from the U.S. Army totaling $137 million. These contracts are designated for the delivery of the AN/AAR-57 Common Missile Warning Systems (CMWS) to allied nations. This strategic agreement reinforces the global defensive capabilities of U.S. partners and highlights Huntsville’s integral role in providing critical defense technologies.

The AN/AAR-57 CMWS is a sophisticated system designed to detect various airborne threats. It is capable of identifying infrared and radio-frequency guided missiles, as well as unguided munitions and other potential dangers. Upon detection, the system automatically alerts aircraft crews and initiates countermeasures in real-time, significantly enhancing aircraft survivability. This technology provides advanced missile warning and hostile fire detection for both rotary-wing and fixed-wing aircraft.

Manufacturing Innovation Across Multiple States

The development and manufacturing of the AN/AAR-57 CMWS are collaborative efforts spanning several BAE Systems facilities. Key sites involved in the design and production include Huntsville, Alabama; Austin, Texas; and Nashua, New Hampshire. This multi-state effort showcases the broad reach of the U.S. defense industrial base and the specialized expertise concentrated in technology hubs like Huntsville. The timely delivery of these systems ahead of schedule underscores the company’s commitment to equipping warfighters with essential capabilities.

More than 3,000 CMWS units have been delivered worldwide and installed on over 40 different types of aircraft and their variants. This new contract is set to expand the system’s deployment to the fleets of more than 20 allied countries, broadening the reach of this combat-proven technology. The AN/AAR-57 CMWS has accumulated approximately 4 million combat theater flight hours since its fielding by the U.S. Army in 2005.

Huntsville’s Economic Engine: The Defense Industry

Huntsville, often referred to as “Rocket City,” maintains an economy deeply intertwined with federal defense, aerospace, and space programs. The consistent flow of defense contracts to companies like BAE Systems is a primary driver of Huntsville’s economic growth and stability. The city’s reputation as a center for high-tech defense innovation attracts skilled talent and fosters an environment ripe for technological breakthroughs. This synergy between government needs and private sector capabilities is a hallmark of Huntsville’s success.

The defense and aerospace sector in the Huntsville region supports more than 70,000 jobs and contributes over $6 billion to the local economy annually. Redstone Arsenal, a critical military installation, plays a central role, housing more than 75 federal and defense organizations. The Arsenal’s operations alone generate an annual economic impact of $36.2 billion in Alabama, with an employment impact of 143,156 total jobs across the Tennessee Valley. This accounts for 58% of the gross regional product for the Valley, underscoring its immense importance.

Fostering a Culture of Innovation and Achievement

The success of companies like BAE Systems in Huntsville is reflective of a broader culture that champions entrepreneurial innovation and encourages personal achievement within the defense industry. The ability of local firms to secure and successfully execute large-scale federal contracts speaks to the high level of technical expertise and the robust infrastructure present in the region. This supportive environment not only attracts established defense giants but also nurtures smaller businesses and startups, creating a dynamic economic landscape.

Alabama’s defense sector overall demonstrates a significant impact, with an estimated annual economic impact of $23.5 billion and attracting over $14 billion in defense spending each year. Nationwide, the total economic impact of military personnel and defense contracts across Alabama amounts to $50.3 billion, providing 264,780 jobs across the state. More than half of these jobs are concentrated in the Huntsville area, further cementing its status as a critical defense hub. This sustained growth is a testament to the dedication of Alabama’s workforce and the strategic investments made in defense-related industries.

The Benefits of Limited Regulation and Strategic Investment

A business environment that embraces limited regulation and strategic investment often provides the necessary flexibility for defense contractors to innovate and respond swiftly to national security needs. By minimizing unnecessary bureaucratic hurdles, state and local governments can empower companies to focus resources on research, development, and efficient production. This approach helps attract and retain high-value businesses, ensuring a steady stream of contracts and job opportunities for Alabama residents.

Huntsville’s position as the second-largest technology and research park in the United States and one of the nation’s top high-tech hotspots is not accidental. It is the result of decades of strategic planning, public-private partnerships, and a commitment to fostering an environment where innovation can flourish. The continued success of companies within the defense sector, such as BAE Systems, underscores the economic vitality and resilience of Huntsville and the broader Alabama economy.

Conclusion

The awarding of the $137 million U.S. Army contract to BAE Systems in Huntsville is a clear indicator of the city’s enduring strength as a hub for defense technology and innovation. This development promises to further stimulate Huntsville economic growth, create valuable jobs, and reinforce the region’s position at the forefront of national security. As Alabama AL entrepreneurs and skilled workers continue to drive progress, supporting Huntsville small business and maintaining a pro-growth environment will be crucial for the city’s ongoing prosperity. We encourage our readers to stay engaged with Huntsville AL business news and support the local enterprises that contribute to our community’s remarkable success.

Frequently Asked Questions

• What is the value of the recent U.S. Army contract awarded to a Huntsville company?

  The U.S. Army contracts awarded to BAE Systems total $137 million.

• Which Huntsville-based company received this contract?

  BAE Systems, a prominent defense contractor with operations in Huntsville, Alabama, received these contracts.

• What is the purpose of the contracts?

  The contracts are for the delivery of AN/AAR-57 Common Missile Warning Systems (CMWS) to allied nations.

• What does the AN/AAR-57 Common Missile Warning System (CMWS) do?

  The CMWS detects infrared and radio-frequency guided missiles, unguided munitions, and other threats, automatically alerting crews and triggering countermeasures in real time.

• Which BAE Systems facilities are involved in manufacturing the CMWS?

  The AN/AAR-57 CMWS is designed and manufactured at BAE Systems’ facilities in Huntsville, Alabama; Austin, Texas; and Nashua, New Hampshire.

• What is the economic impact of the defense and aerospace sector in the Huntsville region?

  The defense and aerospace sector in the Huntsville region supports more than 70,000 jobs and contributes over $6 billion to the local economy each year.

• What is the total economic impact of the defense industry across Alabama?

  Nationwide, the total economic impact of military personnel and defense contracts across Alabama amounts to $50.3 billion, providing 264,780 jobs across the state.

Key Features of the BAE Systems Contract and CMWS

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Author: STAFF HERE HUNTSVILLE WRITER

The HUNTSVILLE STAFF WRITER represents the experienced team at HEREHuntsville.com, your go-to source for actionable local news and information in Huntsville, Madison County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Panoply Arts Festival, Rocket City Brewfest, and Huntsville Comic & Pop Culture Expo. Our coverage extends to key organizations like the Huntsville/Madison County Chamber of Commerce and HudsonAlpha Institute for Biotechnology, plus leading businesses in aerospace, defense, and manufacturing that power the local economy such as Boeing, SAIC, and Mazda Toyota Manufacturing. As part of the broader HERE network, including HEREBirmingham.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.