Avio (AVIO) Q3 2025 earnings summary

Executive summary

• Order backlog reached a record-high €1.86 billion, up 7.8% year-over-year, driven by strong space and defense contracts, including major new agreements for Vega, Ariane, and U.S. defense programs.

• Net revenues for the first nine months were €351 million, up 26.3% year-over-year, mainly from increased Vega and Ariane production and defense propulsion activities.

• EBITDA rose to €15.2 million (+25.9%), with adjusted EBITDA at €16.4 million (+25.3%), and net profit reached €0.5 million, reversing a prior year loss.

• Shareholders approved a capital increase of up to €400 million, with an additional 10% flexibility, to support U.S. expansion and growth initiatives.

• Major contracts signed include a €40 million ESA deal for reusable upper stage technology and a new Vega C launch services agreement.

Financial highlights

• Revenues for the nine months were €351 million (+26.3% year-over-year), with EBITDA at €15.2 million (+25.9%) and adjusted EBITDA at €16.4 million (+25.3%).

• Order backlog stood at €1.86 billion (+7.8%), with €480 million in new orders, including €250 million from Vega and over €200 million from defense propulsion.

• EBIT improved to €0.2 million (reported) and €1.4 million (adjusted), with net profit at €0.5 million.

• Net financial position declined to €47.2 million, reflecting supplier advances and seasonality.

• Investments reached €17.1 million, and R&D costs were €123.8 million (35.3% of revenues).

Outlook and guidance

• 2025 guidance confirmed: order backlog €1.7–1.8 billion, net revenues €450–480 million, reported EBITDA €27–33 million, adjusted EBITDA €30–36 million, net income €7–10 million.

• Long-term revenue target of over €1.2 billion by 2035, with defense share rising to 60% and U.S. revenues to 35–40%.

• EBITDA expected to remain flat until 2028 due to U.S. ramp-up, then grow at over 20% CAGR to 2035, reaching five times current levels.

• Backlog expected to generate ~10% of revenues in Q4 2025, ~30% in 2026–2027, and the remainder mainly in 2028–2029.