U.S. Navy Awards BAE Systems $1.7B Deal for Expanded Precision-Munition Production

F-15E APKWSF-15E APKWS

Aviation News – The U.S. Navy has selected BAE Systems for a five-year contract to supply tens of thousands of APKWS laser-guidance kits, reinforcing the U.S. military’s access to low-cost precision strike capabilities.

The agreement, valued at up to $1.7 billion with an initial $322 million order, responds to rising domestic and international demand. The Navy’s decision allows all U.S. armed forces—and eligible allies through foreign military sales—to acquire the guidance kits through 2029.

APKWS kits convert standard unguided rockets into precision munitions by adding a bolt-on laser guidance section. The system enhances accuracy while lowering costs, offering flexible use across air-to-surface, surface-to-air, and air-to-air missions.