Avio (AVIO) Q1 2025 earnings summary

Executive summary

• Achieved successful Vega C VV26 mission, deploying ESA's Biomass satellite, and Ariane 6 VA263 flight, both with high accuracy and satisfied customers.

• P160C qualification motor test completed, supporting future Ariane 6, Vega C, and Vega E launches, enhancing thrust and payload.

• Net revenues rose 37% year-over-year to EUR 108 million, driven by increased Vega and Ariane 6 production after successful launches.

• EBITDA reported at EUR 4 million, up EUR 2.4 million from Q1 2024; EBIT reported at EUR -0.9 million, a EUR 1.9 million improvement.

• Dividends for 2024 results of EUR 3.75 million paid on May 7, 2025, reflecting confidence in fiscal year 2025 commitments.

Financial highlights

• Net revenues rose 37% year-over-year to EUR 108 million, mainly driven by Vega and Ariane 6 production.

• EBITDA reported at EUR 4 million (3.7% margin), up from EUR 1.6 million in Q1 2024; adjusted EBITDA reached EUR 4.8 million (+40.3%).

• EBIT reported at EUR -0.9 million, a notable improvement from -EUR 2.8 million in Q1 2024.

• Net cash position at EUR 59 million, down from EUR 90.1 million at 2024 year-end due to typical business cycle outflows and cash advances to contractors.

• Dividend of EUR 3.75 million approved and paid, with a 0.8% yield.

Outlook and guidance

• FY 2025 guidance confirmed: revenues expected between EUR 450 million and EUR 480 million, EBITDA EUR 27–33 million, adjusted EBITDA EUR 30–36 million, net income EUR 7–10 million.

• Backlog expected to remain strong at EUR 1.7–1.8 billion.

• Expected more than 15% EBITDA growth and about 30% net income growth versus 2024.

• Steady-state production of 30–35 P120/P160 motors targeted by 2027, with gradual EBITDA improvement as production scales.

• Management aims to further increase Vega C flight cadence following recent mission successes.