US Clears $364 Million APKWS-II Guidance Kit Sale to Italy

The US State Department has approved a possible Foreign Military Sale to Italy covering 5,031 WGU-59B/B APKWS-II guidance sections, with an estimated total value of $364 million. The Defense Security Cooperation Agency (DSCA) notified Congress of the sale on 21 August 2026. The package is not yet a signed contract; contract negotiations can proceed once congressional review concludes.

At a Glance

Package: 5,031 APKWS-II laser guidance kits
Estimated value: $364 million
Prime contractor: BAE Systems
Notified: 21 August 2026 (DSCA/Congress)
Purpose: strengthens NATO integrated air and missile defense, adds counter-drone capability

Per the DSCA notice, the package extends well beyond the guidance kits themselves. It includes seven-shot LAU-131 rocket pods, Mk-152 10-pound warheads, Mk-66 rocket motors, proximity fuzes, inert training rounds, and related technical documentation and support. DSCA specifically noted the sale requires no US personnel or bases in Italy and will not alter the regional military balance.

APKWS-II, the Advanced Precision Kill Weapon System, converts standard 70mm rockets into laser-guided precision munitions. In recent years it has increasingly been fielded as a low-cost, precise air-to-air counter-drone weapon, a role that has sharpened NATO members’ interest in the system amid a rising threat picture from small unmanned aircraft along alliance borders and airspace.

Regional Impact

DSCA said the sale will improve Italy’s ability to meet current and future threats, strengthen homeland defense while deterring regional threats, and meaningfully boost Italy’s contribution to NATO’s integrated air and missile defense architecture. The move is being read as part of a broader wave of European counter-drone investment following repeated unmanned aircraft incursions into NATO airspace — including incidents reported in Poland, Romania and the Baltic states — in the wake of the Russia-Ukraine war. While there is no direct commercial link to Turkey, rising NATO demand for low-cost precision-guided munitions and counter-drone capability is a development being watched as it shapes the competitive landscape in segments — laser-guided rocket kits, electronic warfare, counter-UAS systems — where Turkish defense firms are also active in the European market.

FAQ

Is the sale finalized?
No. The DSCA notification opens the congressional review window; the final quantity and cost may still change.

What platforms carry APKWS-II?
The system is integrated across a wide range of rotary- and fixed-wing platforms, from helicopters to light attack aircraft.

Is there a delivery schedule?
No delivery timeline or offset agreements were specified in the DSCA notice.

Sources

US Department of State / DSCA notification (21 August 2026)
The Aviationist, “U.S. Approves Air-to-Air APKWS Sale to Italy”
Army Recognition, “U.S. Clears Major $364M Air-to-Air APKWS II Guided Rocket Package for Italy’s Counter-Drone Defense”