Avio (AVIO) Q1 2026 earnings summary

Executive summary

• Q1 2026 results were in line with expectations, with net revenues rising 19–20% year-over-year to €128.5 million, driven by Vega C production, Ariane 6 booster output, and defense business growth.

• Successful Ariane 6 launches for Amazon using four boosters and preparations for the Vega C VV29 mission scheduled for May 19, 2026.

• Significant advancements in liquid propulsion technology and U.S. expansion, including land acquisition, equipment orders, and hiring in Virginia.

• The Board of Directors was refreshed, adding U.S. defense and financial expertise, with over 50% independent directors and management continuity.

• Order backlog stood at €2.1 billion, providing visibility through 2030.

Financial highlights

• Revenues increased by 19–20% year-over-year to €128–128.5 million, mainly from higher production in launch, space, and defense propulsion.

• Adjusted EBITDA rose to €5.7 million, up 18.7% year-over-year, with reported EBITDA at €5.2 million (+29.9%), margin at 4.1%.

• Net financial position at €559.1–560 million as of March 31, 2026, down €32.6 million from December 2025 due to supplier payments.

• Dividend of €6.8 million approved, payable from May 20, 2026.

• Q1 CapEx was €4 million, with full-year CapEx planned at €90 million, focused on U.S. expansion.

Outlook and guidance

• Full-year 2026 guidance confirmed: revenues €560–590 million, EBITDA €27–35 million, net income €8–13 million.

• The company anticipates a busy flight schedule, with up to eight Ariane 6 and three Vega-C launches in 2026.

• Backlog expected to remain robust, with potential upsides from new defense orders.

• Growth driven by defense business acceleration and Ariane 6 production ramp-up.

• Management notes Q1 is seasonally soft, with most profit typically realized in Q4.