BAE Systems plans to increase production of Advanced Precision Kill Weapon System (APKWS) guidance kits to as many as 35,000 annually under a new US Department of Defense agreement.
The deal establishes a procurement framework lasting up to seven years. BAE will increase production while negotiating a separate multiyear contract with the department.
The Pentagon’s announcement sets a target of up to 25,000 kits annually for US forces, with a pathway to reach 35,000 as allied countries formally request additional supplies through the foreign military sales program.
The expanded capacity is intended to support demand for precision-guided munitions, including weapons used against drones.
APKWS kits convert unguided 2.75-inch (6.9-centimeter) rockets into laser-guided weapons. They are used by US forces and can support air-to-surface, surface-to-surface, surface-to-air, and air-to-air engagements.
BAE manufactures the kits at facilities in Hudson, New Hampshire, and Austin, Texas.
US Expands APKWS Production
The new framework follows a major US Navy contract awarded to BAE Systems in December 2025.
Valued at up to $1.7 billion over five years, the contract includes an initial $322 million order for APKWS guidance kits and supports continued production for US forces and potential foreign military sales.
Separate efforts are adapting APKWS for counter-drone missions. L3Harris Technologies signed a $48.5-million contract to supply its Fixed Wing, Air Launched, Counter-Unmanned Aircraft Systems Ordnance mechanical proximity fuzes for upgrades to the system.
The low-cost technology detonates a warhead near a target, removing the need for a direct hit.