US Clears $364M APKWS-II Drone-Killer Rocket Sale to Italy for Eurofighter Fleet

The US State Department approved a Foreign Military Sale of 5,031 APKWS-II air-to-air laser guidance kits to Italy on 21 August 2026. The package, worth an estimated $364 million with BAE Systems as prime contractor, is aimed at giving Italy’s Eurofighter Typhoon fleet a counter-UAS capability.

At a Glance

• The approved FMS package covers 5,031 APKWS II WGU-59B/B air-to-air guidance sections and related support equipment.
• The estimated package value is $364 million; BAE Systems is the principal contractor.
• APKWS II converts unguided 2.75-inch Hydra rockets into laser-guided precision weapons; the guidance section costs roughly $15,000, far cheaper than traditional air-to-air missiles.
• The approval came about a week after an Italian Typhoon shot down an unidentified drone over Latvia during a NATO Baltic Air Policing mission on 14 August 2026.
• Janes had previously reported strong interest from other Eurofighter operators in APKWS for the counter-UAS role.

Background

APKWS II adds a laser seeker to the US military’s standard unguided Hydra 70 rocket, turning it into a precision-guided munition. The approach addresses the cost mismatch of using expensive air-to-air missiles against small, cheap drones: a guidance kit costs around $15,000, a fraction of the price of a conventional missile running into hundreds of thousands of dollars. The drone shootdown over Latvia underscored the growing threat small UAVs pose along NATO’s eastern flank and how existing air-to-air munitions are ill-suited to counter them cost-effectively.

Italy’s decision to integrate the capability into its Eurofighter fleet is seen as a bellwether for similar requests across Europe; BAE Systems’ reported interest from other Eurofighter operators suggests this sale may mark the start of a broader regional trend rather than an isolated case.

Regional Impact

The search for low-cost, precision counter-drone weapons is an area Turkish defence firms are also tracking closely. Laser-guided rocket and counter-UAS systems developed by companies such as Roketsan and ASELSAN follow a similar logic to APKWS II — defeating expensive threats with inexpensive munitions. As demand for such systems rises across NATO, Turkish manufacturers pursuing comparable cost-effective solutions could find new export openings, particularly as Eastern European air-defence modernisation programmes intensify.

FAQ

What exactly is APKWS II? A laser guidance kit fitted to the standard unguided Hydra 70 rocket, converting it into a low-cost precision munition.

Why does this matter? Its far lower cost compared to conventional air-to-air missiles makes it economically sustainable to use against small drones.

When will deliveries begin? The FMS approval is the first formal step toward delivery; the exact timeline will depend on contract details finalised between Italy and the US.

Sources

• Janes
• Defense News
• The Aviationist
• Army Recognition
• Air Force Technology