BAE Systems has secured a significant five-year contract with the US Navy to sustain production of its Advanced Precision Kill Weapon System (APKWS) laser-guidance kits. The new deal covers “tens of thousands” of low-cost precision munitions, beginning with a $322-million initial order. If all options are exercised, the contract’s total value could reach up to $1.7 billion, further cementing the program’s importance for the US and its allies.
The APKWS has been in full-rate production for more than 12 years, with manufacturing operations split between BAE’s facilities in Hudson, New Hampshire, and Austin, Texas. The guidance kit transforms standard 2.75-inch (70mm) unguided rockets into accurate, laser-guided munitions capable of engaging soft or lightly armored ground and airborne targets. Its cost-efficiency and ease of maintenance have made it a preferred option for forces seeking precision effects without the high price tag of traditional smart weapons.
Designed for maximum flexibility, APKWS kits work with both new and legacy rocket motors, warheads, and fuzes, and can be integrated across a wide range of platforms. These include helicopters, fixed-wing aircraft, UAVs, ground vehicles, and naval systems, enabling operators to deploy them in diverse mission environments. Their adaptability has made APKWS a staple in US military operations and an increasingly sought-after capability among global partners.
Earlier this year, APKWS rounds were successfully test-fired from a multi-rotor drone and a modified F-15E Strike Eagle, demonstrating expanding operational relevance. BAE Systems is now assessing its compatibility with the Eurofighter Typhoon, positioning the precision-guided rocket as a potential counter-drone solution for European air forces. The continued development highlights the system’s evolving role in modern, multi-domain warfare.
