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Home›Equipment & technology›BAE Systems nets $1.7 billion US Navy deal for laser-guidance kits
Equipment & technology

December 11, 2025 · about 9 months ago

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

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.

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

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.

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