Avio (AVIO) Q2 2025 earnings summary

Executive summary

• Revenues grew 30% year-over-year in H1 2025, driven by Vega C and Ariane 6 production, and defense propulsion activities, with successful Vega and Ariane 6 missions completed.

• Order backlog reached €1.7 billion at the end of H1 2025, with an additional €0.2 billion in new orders post-period, mainly from defense contracts in Europe and the U.S.

• Avio was designated as the Vega launch service provider, receiving a 10-year license for operations at the Guiana Space Centre.

• Major defense contracts were secured, including a €60 million agreement with MBDA France and a multi-year U.S. Armed Forces contract for tactical missile solid rocket motors.

• Roberto Carassai was appointed as new CFO, effective October 1, 2025.

Financial highlights

• Net revenues for H1 2025 were €234.9 million, up 30% year-over-year; reported EBITDA rose 23.7% to €10.0 million, adjusted EBITDA up 36.7% to €11.4 million.

• EBIT improved to €0.0 million reported and €1.4 million adjusted; net result improved to -€0.2 million from -€1.8 million year-over-year.

• Net cash position at end of June was €75.3 million, down from €90.1 million at December 2024, mainly due to investments and timing effects.

• Investments in H1 2025 totaled €10.3 million, with R&D costs at €80.2 million (34.1% of net revenues).

• Working capital remained structurally negative due to cash advances from orders.

Outlook and guidance

• FY2025 guidance confirmed: order backlog €1.7–1.8 billion, revenues €450–480 million, reported EBITDA €27–33 million, adjusted EBITDA €30–36 million, net income €7–10 million.

• Expects 10% annual revenue growth and >15% CAGR in profits over the next decade, with defense share of revenues rising to 50% by decade's end.

• Growth expected from defense propulsion and Vega activities, with increased launch cadence.

• U.S. plant investment to be majority of new capital; further details to be provided in a dedicated event.

• New business plan and proposed capital increase of up to €400 million to support expansion.