Avio (AVIO) Investor presentation summary

US defense positioning and contracts

• US subsidiary signed a strategic cooperation agreement with Lockheed Martin for ER-GMLRS and PrSM production; RTX partnership on SM-6, SM-3, SM-2 and Tomahawk was anticipated.

• Lockheed Martin received a $1.2B PrSM Increment 2 contract in Sep 2026, in addition to $13B+ in PrSM Increment 1 contracts awarded in 2025–26.

• Selected awards include $24.4B and $6.3B SM-6/SM-3 contracts, plus a 7-year Tomahawk contract worth $22.9B for up to 1,000 missiles/year.

• US defense-item contracts, including PAC-3 and AMRAAM, exceeded $70B in Jul-Sep 2026; an ER-GMLRS sources-sought notice cited $21B.

Demand and propulsion supply

• The US defense supply wave was described as moving at 8x the prior-year speed; the US missiles and munitions budget chart showed a 20% increase.

• June 2026 estimates put average 2025-30 US and European SRM propellant unmet demand at 3,400 tons/year, 40% above the Sept 2025 estimate of 2,400 tons/year.

US capacity and funding

• US production configuration moves from 2 mixers and ~700 tons/year to a modular setup of up to 6 mixers and ~2,100 tons/year, subject to upside and funding.

• Current opportunities include Lockheed Martin ER-GMLRS and PrSM and US Army programs; potential upside includes additional RTX and Lockheed Martin programs and other customers.

• Oct 2026 funding sources show €400M equity, €100M in government soft loans and state grants, and a Virginia state financing package.