Avio (AVIO) Q2 2024 earnings summary

Executive summary

• Successfully completed the final Vega launcher flight and maiden Ariane 6 flight, with Vega C return-to-flight on track for Q4 2024 and ESA authorization for commercial operations post-2025.

• Defense propulsion business expanded with major US contracts (Raytheon and US Army), supporting backlog and future growth, and a growing US subsidiary.

• Order backlog reached a record €1,386 million–€1.4 billion, with new orders exceeding €200 million, half from defense contracts.

• FY 2024 guidance confirmed, with strong order intake and increased production in defense and technology development.

• Significant expansion in the US and France, with new branches and commercial teams established.

Financial highlights

• Net revenues rose 14.5%–15% year-over-year in H1 2024 to €180.6 million, driven by defense propulsion and technology projects.

• EBITDA reported at €8.1 million (+56.8% YoY); adjusted EBITDA stable at €10.6 million.

• EBIT improved to -€0.4 million from -€3.9 million YoY; adjusted EBIT at €2.1 million.

• Net cash position declined to €21.5 million, mainly due to seasonal working capital outflows and investments.

• Dividend of €5–6 million distributed in H1 2024.

Outlook and guidance

• 2024 guidance confirmed: revenue expected between €370–390 million (+10% YoY), reported EBITDA €21–26 million, net income €6–10 million.

• Order backlog projected to reach €1.5–1.6 billion by year-end, with further defense and Vega C orders anticipated.

• Growth driven by defense propulsion and technology projects; non-recurring costs expected to decline as US business matures.