Avio (AVIO) Q1 2026 earnings summary

Executive summary

• Q1 2026 results were in line with expectations, with net revenues rising 19.0% year-over-year to €128.5 million, driven by Vega C production, Ariane 6 booster output, and defense business growth.

• The company completed two Ariane 6 launches for Amazon using four-booster configurations and is preparing for the Vega C VV29 mission scheduled for May 19, 2026.

• Liquid propulsion and US expansion projects are progressing, including land purchase, equipment orders, and incentives in Virginia.

• The Board of Directors was restructured for 2026–2028, with new U.S. defense and financial experts, over 50% independent directors, and management continuity.

• The company is advancing liquid propulsion and reusability technologies, with ground and flight tests planned for next year.

Financial highlights

• Revenues increased by 19% year-over-year to €128.5 million in Q1 2026, mainly from higher production in launch, space, and defense propulsion.

• Adjusted EBITDA rose to €5.7 million, up 18.7% year-over-year, with reported EBITDA at €5.2 million (+29.9%), margin 4.1%.

• Net financial position was €559.1 million as of March 31, 2026, down €32.6 million from December 2025 due to supplier payments.

• Net order backlog stood at €2.1 billion, stable versus FY2025.

• Dividend of €6.8 million approved, equivalent to €0.14846 per share, payable from May 20, 2026.

Outlook and guidance

• Full-year 2026 guidance is confirmed: revenues €560–590 million, EBITDA reported €27–35 million, net income €8–13 million.

• The company anticipates a busy flight schedule, with up to eight Ariane 6 and three Vega-C launches in 2026.

• Backlog remains robust, exceeding €2.1 billion, providing visibility through 2030.

• Growth is expected from defense business acceleration and Ariane 6 production ramp-up.

• Management notes Q1 is typically soft, with most profit generated in Q4 due to seasonality.