BAE Systems and US DoD sign multi-year APKWS production deal

The US Department of Defense has entered into a seven-year framework agreement with BAE Systems to significantly increase the production of Advanced Precision Kill Weapon System (APKWS) laser-guidance kits. The agreement aims to establish a production capacity of up to 25,000 kits annually for US domestic use, with the potential to scale up to 35,000 units per year to meet the demands of international allies through Foreign Military Sales (FMS) programs.

These kits are designed to convert standard 2.75-inch (70 mm) unguided rockets, such as the Hydra 70, into high-precision laser-guided munitions. This provides a cost-effective alternative to more expensive missile systems and is highly effective for both ground targets and counter-unmanned aerial vehicle (C-UAS) missions. The production will be supported by BAE Systems' facilities in New Hampshire and Texas.

The expansion follows growing global demand driven by recent combat experiences in Ukraine and the Middle East. Potential international users of the system include Saudi Arabia, Italy, and the United Arab Emirates, while Poland has also been identified as a potential customer for use with its Boeing AH-64E Apache helicopters.