Exclusive: U.S. Orders $1.7 billion APKWS II Guided Rockets to Boost Army and Navy Precision Strike.

According to information published by the U.S. Department of Defense on August 28, 2025, BAE Systems Information and Electronic Warfare Systems, based in Hudson, New Hampshire, has been awarded a $1.743 billion firm-fixed-price, indefinite-delivery/indefinite-quantity contract for the production and delivery of up to 55,000 Advanced Precision Kill Weapon System II (APKWS II) rockets. The award covers Full-Rate Production Lots 13 through 17 and will provide guided rockets to the U.S. Navy, U.S. Army, and approved Foreign Military Sales customers. Deliveries are scheduled to continue through December 2031, securing a long-term supply of one of the U.S. military’s most relied upon precision strike weapons.
Follow Army Recognition on Google News at this link

A weapons load crew from the 127th Aircraft Maintenance Squadron conducts a stray voltage check before arming an A-10C Thunderbolt II with AGR-20 APKWS laser-guided rockets at Selfridge Air National Guard Base, Michigan. (Picture source: U.S. DoD)

This contract represents one of the largest procurement commitments ever made for the APKWS (Advanced Precision Kill Weapon System) II and underscores the Pentagon’s long-term strategy to expand stockpiles of cost-effective precision-guided munitions. At a total potential value of $1.743 billion, the deal highlights the central role the system plays in modern U.S. and allied operations. Covering five consecutive production lots, the contract guarantees industrial continuity and ensures that the system remains widely available for both domestic and international customers over the next decade.

The APKWS II is an advanced upgrade of the 2.75-inch Hydra 70 unguided rocket, a munition that has been in service for decades. By integrating the WGU-59/B guidance section between the rocket motor and the warhead, the system transforms into a semi-active laser-guided precision weapon. It achieves a circular error probable of less than one meter, allowing forces to engage targets with pinpoint accuracy. The APKWS II provides the ability to destroy soft-skinned vehicles, light armor, fortified positions, and even unmanned aerial systems while minimizing collateral damage. At an average unit cost of approximately $35,000, it delivers precision at a fraction of the cost of larger missile systems such as Hellfire or Javelin.

For the U.S. Army, the APKWS II fills an important tactical niche. It is qualified for use on platforms such as the AH-64 Apache, AH-6 Little Bird, and A-10 Thunderbolt II, offering scalable firepower for close air support and counter-insurgency operations. The system allows rotary- and fixed-wing aircraft to carry larger quantities of precision-guided weapons without sacrificing payload capacity, ensuring prolonged battlefield presence. Its affordability and precision make it especially effective against the growing threat of low-cost drones, providing a rapid and sustainable response option.

For the U.S. Navy and Marine Corps, APKWS II is equally vital. Integrated on aircraft such as the MH-60 Seahawk, AH-1Z Viper, and AV-8B Harrier II, it offers precision strike capabilities in both maritime and littoral environments. The weapon has been employed against small boat swarms, mobile missile launchers, and coastal defenses, providing naval aviation with versatile strike options where collateral damage must be minimized. The Navy has also explored its use in shipborne counter-drone operations, showcasing its adaptability to emerging maritime threats and reinforcing its role in layered defense strategies.

The significance of this contract extends beyond U.S. forces. APKWS II has become a widely exported precision weapon, with numerous countries in Europe, the Middle East, and the Asia-Pacific adopting it through Foreign Military Sales. This $1.743 billion production deal ensures availability for partner nations, reinforcing coalition interoperability and strengthening U.S. defense ties abroad. Nations such as Jordan, Iraq, Lebanon, the United Arab Emirates, and Australia have already integrated APKWS II into their air forces, with additional orders expected as the demand for affordable guided munitions rises.

The award confirms APKWS II as the Department of U.S. Defense’s program of record for guided 2.75-inch rockets and highlights the Pentagon’s emphasis on cost-effective precision weapons in an era dominated by asymmetric threats. The system has become particularly relevant in counter-drone operations, where its balance of accuracy, affordability, and versatility has proven decisive. Conflicts in Ukraine, Nagorno-Karabakh, and the Middle East have shown how low-cost unmanned systems are reshaping battlefields, and APKWS II provides a practical answer by delivering precision strike capability without exhausting expensive missile inventories.

For BAE Systems, this award solidifies its industrial position in the precision munitions sector and secures production capacity well into the next decade. For the U.S. military, it guarantees uninterrupted supply of a weapon that bridges the gap between unguided rockets and more costly guided missiles, ensuring that both large-scale combat operations and limited interventions can be supported with scalable firepower. Future developments, including dual-mode seekers that could add infrared tracking, are expected to further expand its tactical role.

The $1.743 billion APKWS II contract is therefore more than a procurement announcement—it is a clear signal of how the U.S. and its allies are adapting their arsenals to meet evolving threats. By investing in a proven, versatile, and affordable precision strike solution, the Pentagon is strengthening its ability to fight across multiple domains while ensuring that partner nations have access to the same battlefield-proven capability.