The US Navy has awarded BAE Systems a new five-year, indefinite-delivery, indefinite-quantity contract for Advanced Precision Kill Weapon System (APKWS) laser-guidance kits to equip US armed forces with tens of thousands of additional low-cost precision munitions, BAE Systems announced on 10 December 2025.
The contract has a maximum value of USD 1.7 billion (EUR 1.45 billion), with an initial USD 322 million order.
The new contract supports increased domestic and international demand for APKWS, enabling the US Navy to purchase the guidance kits over a five-year period. The kits are available to all US armed forces, as well as allies via the Foreign Military Sales mechanism.
APKWS guidance kits, which transform unguided 2.75-inch (70 mm) rockets into laser-guided munitions for precision strikes, are combat proven as an air-to-surface, surface-to-surface, surface-to-air and air-to-air munition.
They can thus be used to address a wide range of targets, including moving armoured vehicles, and can be fired by various platforms, including rotary- and fixed-wing aircraft, unmanned aerial vehicles, static and mounted ground platforms, and maritime vessels.
The APKWS guidance kit is compatible with new and existing inventories of rocket motors, warheads and fuzes, requires minimal training to use in the field and has a simple, affordable maintenance concept, making it an efficient way to transform unguided rockets into precision munitions
BAE Systems has been in full-rate production with its APKWS guidance kit for more than 12 years.
“This award reinforces the value of proven and cost-efficient precision munitions, which have consistently demonstrated their effectiveness and versatility across multiple platforms and missions,” Neeta Jayaraman, director of Precision Guidance and Sensing Solutions at BAE Systems, was quoted as saying in a company press release. “The APKWS guidance kit provides advanced capabilities to our armed forces and foreign allies, and high-volume production ensures rapid and efficient delivery to the warfighter.”
APKWS laser-guidance kits are produced at BAE Systems’ manufacturing facilities in Hudson, New Hampshire, and Austin, Texas.
