BAE Systems signs new $1.7 billion precision-guidance contract with U.S. Navy
NewsDecember 10, 2025
HUDSON, N.H. BAE Systems and the U.S. Navy agreed on a new five-year, indefinite-delivery/indefinite-quantity contract to supply APKWS laser-guidance kits that will equip the U.S. military with tens of thousands of additional low-cost precision munitions. The contract has a maximum value of $1.7 billion, with an initial $322 million order.
Under the terms of the new agreement, the Navy will be able to buy APKWS guidance kits over a five-year period, for both U.S. armed forces, as well as allies via foreign defense sales.
APKWS guidance kits transform unguided 2.75-inch rockets into laser-guided rockets for precision strikes to engage a range of soft and armored stationary and moving targets, minimizing collateral damage. The kits are able to be fired using various platforms, including rotary- and fixed-wing aircraft, uncrewed aerial vehicles, static and mounted ground platforms, and maritime vessels. BAE Systems officials note that the APKWS guidance kit is compatible with new and existing inventories of rocket motors, warheads, and fuzes.
