BAE Systems targets 400% production increase at Hägglunds as CV90, BvS10 demand surges
BAE Systems expects a 400% increase in production at its Hägglunds business in Sweden, with annual output of CV90 infantry fighting vehicles and BvS10 armoured all-terrain vehicles set to pass 400 units in 2027.
Tom Arseneault, President and CEO of BAE Systems Inc., said during the group's first-half 2026 earnings call that BAE has invested to significantly expand production capacity and manufacturing capability at Hägglunds.
"Our CV90 and BvS10 combat vehicles are in high demand across a number of European customers," Arseneault said, adding that the two programmes are key drivers of a record order backlog in Sweden and the Platforms & Services sector.
"We will build almost 300 combat vehicles this year. We expect to be up over 400 next year," he said.
The figures exclude a separate five-nation CV90 programme still under negotiation. Arseneault said the potential deal could add more than 400 additional vehicles, describing the outlook as "some really good, strong growth potential" on top of the current ramp.
The Swedish businesses are already lifting the group's land portfolio. Chief Financial Officer Brad Greve said Platforms & Services sales rose 12% in the first half of 2026, including nearly 30% growth from Hägglunds and Bofors on sales to Europe.
BAE Systems reported group sales of £15.8 billion for the first half, up 9% year on year, with underlying EBIT up 11% to £1.7 billion, and raised full-year guidance across all key metrics.