The U.S. Navy has awarded BAE Systems with $2,6 billion in contracts for the procurement of modern precision-guided rocket.

The contract award from Naval Air Systems Command covers the procurement of Advanced Precision Kill Weapon System (APKWS) II full-rate production Lots 8-12, a U.S. Department of Defense news release states.

This award procures WGU-59/B units to upgrade the current 2.75-inch rocket system to a semi-active laser-guided precision weapon to support Navy, Army, Air Force, and foreign military sales requirements to include the governments of Iraq, Lebanon, Netherlands, Jordan, Afghanistan, United Kingdom, Tunisia, Philippines and Australia.

Work will be performed in Hudson, New Hampshire (54%); and Austin, Texas (46%), and is expected to be completed in December 2025.

The APKWS rocket bridges the gap between unguided rockets and anti-armor munitions, consistently delivering pinpoint accuracy to soft targets at a low cost, that no other system can match.

APKWS II convert is an unguided rocket into a highly accurate Precision Guided Munition. The smaller warhead greatly reduces collateral damage while providing sufficient lethality to destroy point targets.

The rockets have three main sections; a Hydra 70 rocket motor, an M282 High Explosive Incendiary Multipurpose Penetrator Warhead and the guidance unit. The guidance unit allows for the change of the course of fire or hit moving targets.

The APKWS II adds a mid-body Semi-Active Laser WGU-59/B guidance unit to the current 2.75-inch rocket. The 2.75-inch rocket with APKWS II guidance section and M282 Multipurpose Penetrator warhead is replacing the standard 5.0 inch high explosive warhead.