BAE Systems, US Department of War sign long‑term agreement to increase APKWS production

Framework agreement accelerates delivery of proven, cost‑effective precision munitions

FALLS CHURCH, Va. and HUDSON, N.H. , Oct. 19, 2026 /PRNewswire/ -- BAE Systems (LON: BA) has signed a landmark multi-year framework agreement for up to seven years of multi-year procurement with the U.S. Department of War (DoW) to increase production capacity of APKWS^® laser‑guidance kits up to 35,000 units per year, providing surge-ready support for evolving operational demands.

Under the agreement, BAE Systems will increase production while negotiating a multi‑year contract within the framework. APKWS kits are a combat‑proven, cost-effective, multi-mission solution for precision strikes against a range of threats, including the counter‑unmanned aircraft systems (C‑UAS) mission. This framework agreement reinforces the nation's Arsenal of Freedom by accelerating delivery and strengthening the supply of critical munitions for the U.S. and its allies.

"APKWS delivers proven, reliable and affordable precision at scale to counter evolving threats and ensure our warfighters maintain a decisive advantage," said Tom Arseneault, president and CEO of BAE Systems, Inc. "This agreement highlights the importance of sustained investment in critical munitions to strengthen readiness and equip forces for evolving operational needs."

BAE Systems' APKWS laser-guidance kits transform unguided 2.75-inch rockets into precision-guided munitions. The kits are currently fielded by the U.S. Air Force, Army, Marine Corps and Navy, and are available to U.S. allies. The kits can be deployed across a wide range of platforms and are effective in air-to-surface, surface-to-surface, surface-to-air, and air-to-air engagements.

Aligned with the DoW's Acquisition Transformation Strategy, BAE Systems has made sustained investments in advanced manufacturing capacity, materials and human expertise, supported by a robust supply chain and a proven APKWS partner ecosystem. BAE Systems continues to develop upgrades, mission specific variants and new technologies to address emerging threats while expanding capacity to meet future demand.

APKWS laser-guidance kits are produced at BAE Systems' state-of-the-art manufacturing facilities in Hudson, New Hampshire and Austin, Texas.

For more information, visit the APKWS laser-guidance kit page. 

For more information, please contact:

Eric Peterson, BAE Systems
Mobile: 603-288-4082
[email protected] 

www.baesystems.com/US
@BAESystemsInc 

SOURCE BAE Systems, Inc.