BAE Systems Awarded $1.743 Billion Contract for 55,000 APKWS II Guided Rockets
BAE Systems has secured a $1.743 billion contract to produce up to 55,000 APKWS II (Advanced Precision Kill Weapon System II) guided rockets. The contract includes full-rate production Lots 13–17 and will supply the laser-guidance conversion kits to the U.S. Navy, U.S. Army, and authorized Foreign Military Sales customers. Work will be carried out across BAE’s U.S. and allied facilities with major assembly in New Hampshire, New Jersey, and the U.K. The contract spans multiple years through December 2031. This means a steady and long-term supply of APKWS II rockets for a wide range of American and partner air and ground platforms.
The APKWS II system turns a standard 2.75-inch Hydra unguided rocket into a semi-active laser-guided precision weapon. A small guidance section (the WGU-59/B) is placed between the motor and warhead, giving the rocket a circular error probable under one meter and allowing pilots to engage small or mobile targets with pinpoint accuracy. Each APKWS II costs only about one-third as much as larger laser-guided missiles like Hellfire or Javelin. It delivers a lower explosive yield than heavier missiles and reduces collateral damage in close-support or urban operations. APKWS II adds precision to helicopters and aircraft without a heavy logistics or cost burden. It is cleared for use on many platforms from A-10 Thunderbolt IIs, AH-64 Apaches, and Cobra helicopters to UH-60/SH-60 Seahawk, AV-8B Harrier, and F-16 jets, meaning units can carry far more guided rockets on existing launchers.
The new contract underscores APKWS II’s growing strategic importance. Defense officials note that this is one of the largest-ever procurements of the APKWS kit, reflecting the Pentagon’s emphasis on affordable precision munitions. By locking in production Lots 13–17, the U.S. ensures that its stockpiles of precision rockets remain robust for years, a critical hedge against the proliferation of low-cost threats like hostile drones. Allies are on board as well – countries including Jordan, Iraq, Lebanon, the UAE and Australia already field APKWS II under Foreign Military Sales – and the contract ensures availability for partner nations, reinforcing coalition interoperability.
For BAE Systems, the award secures production work deep into the next decade and solidifies its industrial position in the precision munitions sector. It guarantees U.S. forces a continuous supply of a mid-cost precision rocket that bridges the gap between unguided Hydra rockets and much more expensive guided missiles. The deal enhances the country’s overall defense readiness by deploying a proven and versatile weapon that supports both advanced combat and routine close-support missions.