Avio (AVIO) Q4 2025 earnings summary

Executive summary

• Achieved record financial and operational performance in 2025, with order backlog reaching EUR 2,166 million (up 26% year-over-year) and revenues of EUR 542 million (up 23% year-over-year); net income reached EUR 11.6 million, surpassing guidance and growing 82% compared to 2024.

• Four successful Vega C and four Ariane missions completed, increasing production cadence and supporting future growth.

• Defense propulsion backlog exceeded EUR 600 million, with over EUR 250 million in new orders and strengthened agreements with Raytheon and Lockheed Martin.

• EUR 400 million capital increase/rights issue completed, strengthening cash position and enabling U.S. expansion and future investments.

• Major contract wins in both space (Ariane 6, Vega-C, Airbus) and defense (US Army, Raytheon, Lockheed Martin), supporting future growth.

Financial highlights

• Order backlog reached EUR 2,166 million (+25.6% vs. Dec 2024), with revenues for 2025 at EUR 541.7 million (+22.7% year-over-year).

• EBITDA reported at EUR 42 million (6% margin), with adjusted EBITDA at EUR 34.8 million (+30.8%).

• EBIT rose to EUR 12 million (+42.7% year-over-year); net income reached EUR 11.6 million (up 82%).

• Net financial position improved to EUR 591.7 million, mainly due to rights issue proceeds.

• Dividend proposal of EUR 6.8 million for 2026, maintaining payout ratio in line with previous years.

Outlook and guidance

• 2026 guidance: order backlog EUR 2,000–2,100 million; net revenues EUR 560–590 million; EBITDA reported EUR 27–35 million; net income EUR 8–13 million.

• Revenue growth targeted at around 10% annually, with expectations to reach the upper end of guidance.

• EBITDA expected to remain flat in the short term due to increased U.S. startup costs, offset by growing European EBITDA.

• Dividend proposal for 2026: EUR 6.8 million (EUR 0.14846 per share).

• Growth expected from defense business acceleration and increased Ariane 6 motor production.