Avio (AVIO) Q2 2024 earnings summary

Executive summary

• Successfully completed the final Vega launcher flight and maiden Ariane 6 flight, with Vega C return-to-flight on track for Q4 2024 and new ESA authorization for commercial operations post-2025.

• Defense propulsion business expanded with major US contracts (Raytheon and US Army), supporting backlog and future growth.

• Order backlog reached €1.4 billion at the end of H1 2024, the highest in company history, with €208 million in new orders, about half from defense contracts.

• Avio granted commercial rights for Vega launcher sales globally and is building a new commercial team in Paris.

• U.S. subsidiary established, led by experienced defense executives, to support U.S. market entry and compliance.

Financial highlights

• Net revenues rose 14.5% year-over-year to €180.6 million in H1 2024, driven by defense propulsion and technology projects.

• EBITDA reported at €8.1 million, up 57% year-over-year; adjusted EBITDA stable at €10.6 million.

• Net result improved to -€1.8 million from -€3.9 million, reflecting higher revenues and lower non-recurring costs.

• Net cash position decreased to €21.5 million, mainly due to seasonal working capital outflows and CapEx.

• Dividend of €5–6 million distributed in H1 2024.

Outlook and guidance

• 2024 guidance confirmed: order backlog €1.5–1.6 billion (+10–15%), revenue €370–390 million (+10%), EBITDA €21–26 million (+10%), net income €6–10 million (+10–20%).

• Growth driven by defense propulsion and technology development; backlog to roll out in H2 2024.

• Non-recurring costs expected to decline as U.S. business transitions to normal operations.

• Vega C return-to-flight scheduled for Q4 2024 after successful Zefiro-40 test; second test planned for October.