APKWS: Pentagon and BAE Systems sign a framework agreement for up to 25,000 kits a year against drones

The US Department of War and BAE Systems have signed a framework agreement to increase production of APKWS (Advanced Precision Kill Weapon System) guidance kits, as the department announced on Monday, October 19, together with the company. The agreement provides for multi-year procurement of up to seven years and up to 25,000 kits a year for US forces, which the department presents as a boost to the production of “counter-drone” precision weapons.

BAE Systems will raise its production capacity to up to 35,000 units a year, with the ability to scale up immediately when needed. The additional capacity is intended for allies and is activated as countries submit requests through the Foreign Military Sales programme. The company will increase production while negotiating a multi-year contract within the framework agreement. The value was not announced and funding must be approved by Congress. The kits are produced in Hudson, New Hampshire, and Austin, Texas.

“By securing multi-year demand, the agreement keeps production lines running at full tilt, gives our forces stockpiles of air-defence weapons and flips the cost equation in the taxpayer’s favour,” said Under Secretary of War for Acquisition Michael Duffey. “APKWS delivers proven, reliable and affordable precision at scale to counter evolving threats,” said BAE Systems Inc. chief executive Tom Arseneault.

What APKWS is

APKWS converts unguided 70 mm (2.75-inch) rockets into laser-guided weapons and is used by the US Air Force, Army, Marine Corps and Navy. It is fired from the air against ground targets, from ground launchers and against aerial targets, a role that has gained particular weight in countering drones. In February the company delivered the 100,000th kit, and in December 2025 it received from the US Navy a five-year contract with a maximum value of $1.7 billion.

Demand beyond the US

Demand outside the US is growing. The State Department approved in July a potential sale to Saudi Arabia worth $1.96 billion with up to 20,000 kits, while Italy is considering buying 5,031 kits for counter-drone defence. British Typhoons made their debut with APKWS against drones from Cyprus. The agreement is the latest in a series of Pentagon framework agreements this year to speed up munitions production, such as those for the PAC-3 MSE and the THAAD sensors.