Israel Requests $992.4 Million in APKWS Rockets from BAE Systems
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 15 2026
0mins
Source: Fool
- Israel's Defense Initiative: Israel has requested permission from the U.S. to purchase 10,000 Advanced Precision Kill Weapon System-II (APKWS) rockets for $992.4 million, aimed at enhancing its defense against Iranian drones and ensuring readiness for potential hostilities.
- Rocket Performance Advantage: The APKWS rockets combine a laser guidance system with a 70 mm rocket, capable of intercepting drones midair, demonstrating effectiveness in Ukraine against Russian drones, significantly reducing defense costs compared to traditional systems.
- BAE Systems' Profit Potential: As the principal contractor for this arms deal, BAE Systems is expected to reap substantial profits from Israel's purchase, with projected operating profit margins exceeding 15.5%, further solidifying its market position in the electronic systems sector.
- Production Capacity Constraints: BAE Systems can only produce 25,000 APKWS annually, and with a similar order from Qatar, Israel's 10,000-unit order will nearly deplete a year's production capacity, leading to price increases and enhancing BAE's profit margins.
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Analyst Views on LHX
Wall Street analysts forecast LHX stock price to fall
14 Analyst Rating
11 Buy
3 Hold
0 Sell
Strong Buy
Current: 314.780
Low
212.00
Averages
253.50
High
280.00
Current: 314.780
Low
212.00
Averages
253.50
High
280.00
About LHX
L3Harris Technologies, Inc. provides end-to-end technology solutions connecting the space, air, land, sea and cyber domains in the interest of national security. Its segments include Space & Airborne Systems (SAS), Integrated Mission Systems (IMS), Communication Systems (CS), and Aerojet Rocketdyne (AR). The SAS segment supplies full mission solutions as a prime and subsystem integrator in the space, airborne and cyber domains. The IMS segment delivers differentiated mission capabilities and prime systems integration to support intelligence, reconnaissance and surveillance (ISR), passive sensing and targeting, electronic attack, autonomy, power and communications, networks and sensors. CS enables warfighters across all domains with solutions critical to mission success even in the contested environments. The AR segment provides propulsion, power and armament products and systems to the U.S. Government, including the DoD, NASA and various aerospace and defense prime contractors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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