New Munitions Deal With US Navy Could Be Worth $1.7bn To BAE Systems

Weapons upgrade — laser-guided kits transform unguided rockets into precision munitions. Image: BAE Systems
Weapons upgrade — laser-guided kits transform unguided rockets into precision munitions. Image: BAE Systems
12/12/2025

BAE Systems has been awarded a new five-year U.S. Navy deal for laser guidance kits worth at least $322 million — but it could be much larger.

As per a company statement, the potential maximum value of the indefinite delivery, indefinite quantity deal for Advanced Precision Kill Weapon System (APKWS) laser-guidance kits is $1.7 billion.

The combat-proven guidance kits transform unguided 2.75-inch rockets into laser-guided projectiles enabling precision strikes. 

The APKWS kits can also be fitted to rockets fielded by a wide variety of different platforms, including rotary- and fixed-wing aircraft, crewed aerial vehicles, land platforms, and ships.

As well as the U.S., APKWS kits are used by the armed forces of at least eight other nations, including the U.K. The laser-guidance kits are produced at two BAE Systems factories in Hudson, New Hampshire, and Austin, Texas.

Precision Guidance and Sensing Solutions director at BAE Systems Neeta Jayaraman commented: “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.”

She added: “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.”

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