BAE Systems nets $1.7 billion US Navy deal for laser-guidance kits

December 11, 2025, by Fatima Bahtić

Defense giant BAE Systems has been awarded a new five-year, indefinite delivery, indefinite quantity contract to provide APKWS laser-guidance kits to the US Navy.

As disclosed, the new contract supports increased domestic and international demand to enable the navy to purchase APKWS guidance kits over a five-year period.

The kits are available to all US armed forces, as well as allies via foreign defense sales. The APKWS guidance kit completes the missions: air-to-surface, surface-to-surface, surface-to-air, and air-to-air munitions.

The contract has a maximum value of $1.7 billion, with an initial $322 million order.

“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,” said Neeta Jayaraman, director of Precision Guidance and Sensing Solutions at BAE Systems.

“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.”

BAE Systems has been in full-rate production with its APKWS guidance kit for more than 12 years. The technology transforms unguided 2.75-inch rockets into laser-guided rockets for precision strikes.

According to BAE, operators can use the kit to engage a range of soft and armored stationary and moving targets, minimizing collateral damage. Furthermore, APKWS guidance kits accurately strike air and ground targets, giving operators the ability to use them in a wide range of missions.

This versatile kit can be fired by various platforms, including rotary- and fixed-wing aircraft, as well as unmanned aerial vehicles, static and mounted ground platforms, and maritime vessels.