The programme converts 2.75-inch Hydra rockets into semi-active laser-guided precision weapons. BAE Systems stated that the APKWS “redefines precision munitions by hitting targets with pinpoint accuracy and minimal collateral damage – delivering critical lethality when it matters most.”
Work under the contract will be carried out across multiple sites in the United States, the United Kingdom, and Canada. Major production will take place in Hudson, New Hampshire (31%), Whippany, New Jersey (22%), and Plymouth, United Kingdom (16%), with additional component and assembly operations at facilities including Austin, Texas; Bristol, Pennsylvania; Rochester, New York; Kitchener, Ontario; Westminster, Maryland; and Anaheim, California. The contract is expected to be completed by December 2031.
The Naval Air Systems Command at Patuxent River, Maryland, is the contracting authority. No funds were obligated at the time of the award, with funding to be allocated on individual orders as issued, and the Pentagon confirmed the award was not competed.
The APKWS system, first put into production in 2008, has been combat-proven for over a decade and has become the U.S. Government’s only programme of record for 2.75-inch/70mm guided rockets. It bridges the gap between unguided rockets and larger anti-armour munitions, providing “affordable surgical-strike capability to multiple rotary-wing and fixed-wing platforms,” according to BAE Systems. Development and testing are also underway for unmanned aerial systems and ground-based platforms.
Equipped with Distributed Aperture Semi-Active Laser Seeker (DASALS) optics located on all four guidance wings, the system locks on to stationary or moving targets from more than six kilometres away. A recent Single Variant Block Upgrade further optimised flight trajectory, enabling strikes at steeper angles of attack for greater lethality.
The company highlights that the system delivers the highest combat-proven hit rate in its category while reducing the risk of collateral damage. BAE Systems notes that its wing-slot seals protect optics from damage and debris prior to launch, while its 40-degree instantaneous field of regard ensures “a broad capture area for the rocket to adjust mid-flight and stay on track to its target.”
Operational flexibility has enabled the APKWS to be deployed across a wide range of missions, including counter-unmanned aerial systems and ground-to-ground strikes from vehicle-mounted launchers. Its lighter weight, ease of integration, and lower cost have made it attractive to U.S. services and allied militaries alike. To date, more than 50,000 units have been delivered worldwide.
BAE Systems has invested over $100 million in infrastructure upgrades at its facilities to meet growing domestic and international demand. Its factories in Hudson, New Hampshire, and Austin, Texas, supported by a largely U.S.-based supply chain, can deliver at least 25,000 units annually, with a proven ability to accelerate schedules.
The Department of Defense emphasised that the APKWS is one-third the cost and one-third the weight of existing laser-guided weapons. Its lower explosive yield makes it particularly suitable for operations where minimising collateral damage is a priority, while ordnance crews can load and unload the system in a quarter of the time compared with other precision weapons.
