Avio S.p.A. reported first-half 2026 revenue of €276.0 million, an 18% increase from €234.9 million a year earlier, as the Italian aerospace and defense company continued to expand its launch-systems operations and deepen its U.S. footprint.
EBITDA rose 19.1% to €11.9 million from €10.0 million in the prior-year period, maintaining a 4.3% margin. European operations generated roughly €15 million in EBITDA, partially offset by about €3 million in operating costs at Avio USA. The company swung to a positive EBIT of €1.2 million from breakeven a year earlier. Net income jumped to €9.2 million compared with a €0.2 million loss in the same period last year, aided by approximately €5 million in financial income from cash holdings and fair-value adjustments on minority investments.
Avio's net financial position improved to €535.7 million as of June 30, down from €591.7 million at year-end 2025, on €34.0 million in capital expenditures, €28.0 million in working-capital increases and €5.3 million in changes in provisions.
The company's total net backlog exceeded €2 billion, standing at €2,048 million at the end of the first half and pushed above €2.1 billion after a €60 million Vega C production contract was signed in July. Launch systems accounted for 51% of the backlog at €1,045 million, defense propulsion represented 33% at €675 million and space propulsion made up the remaining 16% at €328 million. Production contracts comprised roughly 70% of the backlog, with development work making up the balance. New order intake totaled approximately €160 million in the first half, split between roughly €50 million in launch systems and €110 million in defense propulsion. On June 18, Avio signed a contract with France's MBDA valued at more than €35 million for solid rocket motors and aerodynamic surfaces for the ASTER 30 defense system.
Revenue from launch systems climbed to €168.8 million from €153.2 million, space propulsion revenue surged to €57.3 million from €41.7 million, and defense propulsion revenue grew to €50.0 million from €40.0 million. Production revenue rose to 67% of total revenue from 59% a year earlier.
On the operational front, Avio successfully completed its VV29 mission on May 19, marking its first operation of a Vega C launch as the Launch Service Operator and deploying the ESA-CAS SMILE scientific satellite into orbit. On June 17, the company's P160C solid rocket boosters powered Ariane 6's VA269 mission for the first time in a four-booster configuration, deploying 36 Amazon Leo satellites.
In July, Advent International agreed to invest approximately €110 million through a reserved capital increase at €33.40 per share, acquiring roughly 7% of the pre-money share capital. The private-equity firm manages $94 billion in assets.
Avio is advancing a U.S. expansion, having secured approximately 1,200 acres of industrial land in Virginia's Southern Virginia Multimodal Park. The company signed a $65 million order in March and is eligible for up to $97.7 million in state incentive packages. Production is projected to begin in 2028–2029, with the facility expected to become cash generative around late 2028 or early 2029. Unmet demand for missile propulsion in the U.S. and Europe is assessed at an average of 3,400 tons per year through 2030, a 40% increase over the previous estimate of 2,400 tons annually.
Looking ahead, Avio outlined full-year 2026 guidance of €2,000–2,100 million in backlog and €560–590 million in net revenues, with EBITDA expected at €27–35 million after factoring in Avio USA operating costs of €7–9 million and net income projected at €8–13 million. The company expects to fly 7–8 Ariane missions and 3 Vega launches in 2026, with visibility extending to roughly 30 Ariane flights and 15 Vega flights in its backlog. Medium-term production targets call for six Vega flights per year, 12 Ariane 6 flights per year and P160C booster production exceeding 35 units annually. Upcoming milestones include the VV30 mission on September 14, a groundbreaking ceremony for the U.S. facility at the end of September, ground testing of the LOX-CH liquid propulsion demonstrator later in the year and the first IRIDE constellation launch expected in December.
