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U.S. Department of Defense awarded BAE Systems a $1.7 billion contract for the production and delivery of up to 55,000 Advanced Precision Kill Weapon System II (APKWS) rockets.

Deliveries of the APKWS systems will run through the end of 2031, supporting the U.S. Navy, U.S. Army, and allied nations through Foreign Military Sales programs. The contract represents one of the largest recent expansions of precision-guided munitions production and reflects the Pentagon’s need for cost-effective, scalable strike capabilities in modern battlefields.

The Naval Air Systems Command at Patuxent River, Maryland, would oversee the contract, which was not competed, and no funds were obligated at the time of award, with financing allocated per individual orders.

Multi-national production network

Work under the contract will take place across multiple facilities in the United States, the United Kingdom, and Canada. Major production sites include Hudson, New Hampshire (31% of work), Whippany, New Jersey (22%), and Plymouth, U.K. (16%).

Additional component and assembly operations will be carried out in Austin, Texas; Bristol, Pennsylvania; Rochester, New York; Kitchener, Ontario; Westminster, Maryland; and Anaheim, California.

BAE Systems has invested over $100 million in infrastructure upgrades to expand production capacity, with facilities in Hudson and Austin capable of producing at least 25,000 units annually. The company says it can accelerate production schedules as needed to meet growing domestic and international demand.

APKWS rockets

The APKWS program transforms 2.75-inch Hydra rockets into semi-active laser-guided munitions, bridging the gap between unguided rockets and larger, more expensive anti-armor missiles. First deployed in 2008, APKWS is the U.S. Government’s only program of record for 70mm guided rockets and has been combat-proven for more than a decade.

BAE Systems emphasizes that the system “redefines precision munitions by hitting targets with pinpoint accuracy and minimal collateral damage.” Equipped with Distributed Aperture Semi-Active Laser Seeker (DASALS) optics on all four guidance wings, the rocket can lock onto both moving and stationary targets at ranges exceeding six kilometers. Recent upgrades have optimized flight trajectories to enable steeper angles of attack, increasing lethality while maintaining a lower risk of collateral damage.

Specifications

• Length: 18.5 inches (APKWS II guidance section only); 73.77 inches (APKWS II all-up round)
• Wingspan: 9.55 inches
• Diameter: 2.75 inches
• Weight: 9.8 pounds (APKWS II guidance section only); 32.6 pounds (APKWS II all-up round)
• Speed: Maximum, 1,000 meters per second
• Propulsion: Mk66 Mod 4 rocket motor
• Warhead: M151 or Mk 152 10-pound high-explosive warhead
• Contractor: BAE Systems
• Platforms: AH-1W, UH-1Y, MH-60, AV-8B, F-16, A-10, AH-64

Cost-effective, lightweight, and rapidly deployable system

In addition to precision, the APKWS offers notable operational advantages. Each rocket costs approximately $35,000, roughly one-third the cost of traditional laser-guided missiles such as the AIM-120 AMRAAM or AIM-9X Sidewinder.

The system is one-third the weight of comparable guided weapons, allowing ordnance crews to load and unload rockets in a quarter of the time required for heavier systems. Its lighter weight and ease of integration make APKWS an attractive solution across multiple platforms, including attack helicopters, fixed-wing aircraft, ground vehicles, and unmanned aerial systems. To date, more than 50,000 units have been delivered worldwide, demonstrating both reliability and global operational adoption.

Expanding role in counter-drone missions

The Pentagon is increasingly turning to APKWS to counter the rising threat of hostile drones, which are proliferating across global conflict zones. Defense Secretary Pete Hegseth recently highlighted the “growing exponentially and increasingly sophisticated” nature of the small-UAS threat.

While originally designed as an air-to-ground weapon for attack helicopters such as the Bell AH-1Y, Boeing AH-64D/E, and AH-6, APKWS rockets have been adapted for fighter jet applications.

To coordinate U.S. responses, the Department of Defense established Joint Interagency Task Force 401, bringing together offices and organizations focused on counter-drone operations. APKWS rockets have been integrated into multiple counter-UAS platforms, including L3Harris’ Vampire system, which pairs a rocket launcher with a digital sensor and laser designator. This system has been deployed in Ukraine and tested for naval applications, providing cost-effective defense against swarms of low-cost drones.

The U.S. Air Force has successfully integrated the rockets with F-16 jets, using Northrop Grumman’s Litening targeting pod to engage one-way unmanned aerial systems launched by Houthi militants in Yemen.

BAE has also demonstrated the ability to launch APKWS rockets from small quadcopters, testing the Malloy Aeronautics TRV-150 at the U.S. Army’s Dugway Proving Ground. These operational expansions highlight the system’s flexibility in addressing new aerial threats and unconventional battlefield challenges.

Combat-proven effectiveness

Recent conflicts such as the 2020 Nagorno-Karabakh war, the Russia-Ukraine conflict, and hostilities between Israel and Iran have underscored the role of drones in modern warfare. Small, commercially available quadcopters were first used for reconnaissance and artillery spotting, and later adapted into armed attack drones.

In Ukraine, operators employed “first-person view” drones to target armored vehicles and inflict casualties, while secret operations using drones reportedly destroyed portions of Russia’s strategic bomber fleet.

The proliferation of low-cost, high-impact drone technology has prompted the Pentagon to adopt APKWS as a scalable, precise, and rapid-response solution for counter-UAS defense.

With growing global reliance on drone warfare and precision munitions, APKWS is set to play a critical role in U.S. and allied operations for the coming decade. Its affordability, versatility, and combat-proven reliability make it a central component of efforts to maintain battlefield effectiveness against increasingly sophisticated threats.

BAE Systems’ investments in production capacity, coupled with Pentagon contracts, ensure that U.S. and allied forces will have continued access to large quantities of precision-guided rockets while expanding the system’s role in air, ground, and unmanned operations.