Avio (AVIO) Q4 2025 earnings summary

Executive summary

• Achieved record financial and operational performance in 2025, with order backlog reaching EUR 2,166 million (up 26% year-over-year) and revenues exceeding EUR 542 million (up 23%), driven by strong commercial execution and major contracts in space and defense.

• Net income reached EUR 11.6 million, surpassing guidance and growing 82% year-over-year, reflecting improved operating performance and successful EUR 400 million capital increase.

• Four successful Vega C launches and ramp-up of Ariane 6 programs, with major contracts secured for booster and turbopump production through 2029.

• Defense propulsion backlog exceeded EUR 600 million, with over EUR 250 million in new orders and strengthened partnerships with Raytheon, Lockheed Martin, and MBDA.

• EUR 400 million rights issue completed to fund U.S. expansion, supporting new facility and future growth.

Financial highlights

• Revenues reached EUR 541.7 million, up 23% year-over-year, driven by launch systems, space propulsion, and defense propulsion.

• EBITDA reported at EUR 42 million (6% margin), with adjusted EBITDA at EUR 34.8 million; EBIT at EUR 12 million, up 43% year-over-year.

• Net income of EUR 11.6 million, up 82% year-over-year and above guidance.

• Net financial position at EUR 591.7 million, strengthened by rights issue and cash advances from new orders.

• Dividend proposal of EUR 6.8 million for 2026, maintaining payout ratio in line with previous years.

Outlook and guidance

• 2026 guidance: order backlog EUR 2.0–2.1 billion, net revenues EUR 560–590 million, EBITDA reported EUR 27–35 million, net income EUR 8–13 million.

• Continued growth expected, with upside potential from surging defense demand and increased Ariane 6 production.

• AVIO USA operating costs to rise (EUR 7–9 million in 2026); energy cost volatility remains a risk.

• Dividend proposal of EUR 6.8 million (58.6% payout ratio) for 2026.