Avio (AVIO) Q1 2025 earnings summary

Executive summary

• Achieved successful Vega C VV26 mission, deploying ESA's Biomass satellite with high accuracy, and Ariane 6 VA263 flight, both with satisfied customers.

• P160C qualification motor test completed, supporting future Ariane 6, Vega C, and Vega E launches, enhancing thrust and payload.

• Net revenues rose 37% year-over-year to EUR 108 million, driven by increased Vega and Ariane 6 production after successful launches.

• Three successful launches in eight months, with another Vega C launch scheduled for July, indicating increased flight frequency.

• Dividends for 2024 results of EUR 3.75 million paid on May 7, 2025, reflecting confidence in fiscal year 2025 commitments.

Financial highlights

• Net revenues rose 37% year-over-year to EUR 108 million, mainly driven by Vega and Ariane 6 production.

• EBITDA reported at EUR 4 million (3.7% margin), up from EUR 1.6 million in Q1 2024; adjusted EBITDA EUR 4.8 million (+40.3%).

• EBIT reported at EUR -0.9 million, a notable improvement from -EUR 2.8 million in Q1 2024.

• Net cash position at EUR 59 million, down from EUR 90.1 million at 2024 year-end due to typical business cycle outflows and cash advances to contractors.

• Dividend of EUR 3.75 million approved and paid, with a 6% payout ratio and 0.8% dividend yield.

Outlook and guidance

• FY 2025 guidance confirmed: revenues expected between EUR 450 million and EUR 480 million, EBITDA EUR 27–33 million, adjusted EBITDA EUR 30–36 million, net income EUR 7–10 million, and backlog EUR 1.7–1.8 billion.

• Expecting double-digit growth in defense revenues and order intake of around EUR 150 million in 2025.

• Steady-state production of 30–35 P120/P160 motors targeted by 2027, with EBITDA benefits expected to accrue before then.

• Management aims to further increase Vega C flight cadence following recent mission successes.