Avio Reports 30% Increase in Q1 2026 Earnings, Driven by Vega C and Defense Contracts
Avio's Q1 2026 Financial Performance and Key Business Drivers
May 12 (Reuters) - Italian rocket maker Avio said on Tuesday its first-quarter core earnings rose from the year before as stronger revenue offset higher costs tied to its U.S. business.
Financial Highlights
Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose about 30% to 5.2 million euros ($5.9 million) in the first quarter of 2026.
Order backlog stood at 2.12 billion euros. Order intake during the period was around 80 million euros, CFO Roberto Carassai said in the post earnings call.
Revenue Growth and Order Intake
- Reported net revenue rose 19% to 128.5 million euros, driven by Vega C production activities and defense business growth
- The rocket maker confirmed its 2026 guidance, expecting EBITDA in a range of 27 to 35 million euros, and a net profit between 8 and 13 million euros
- Quarterly order intakes mainly came from development activities on Vega family launchers and a defense contract with the U.S. army
Brokerage and Analyst Insights
- Brokerage Equita expected the "weakest quarter of the year" to bring moderate growth in line with 2026 guidance
- Equita forecast first-quarter net revenues of 115 million euros and an adjusted EBITDA of 4.6 millions
Strategic Projects and Future Outlook
Upcoming Launches and Contracts
- An upcoming launch of Vega C is scheduled on May 19; it will carry the ESA and CAS scientific satellite Solar wind Magnetosphere Ionosphere Link Explorer (SMILE)
- Excluding the U.S. army contract, most of Avio's orders are to be awarded by European Space Agency (ESA), brokerage Equita says.
- Raytheon and Lockheed Martin orders for the new U.S. plant are also still expected at a later date
Currency Exchange Rate
($1 = 0.8524 euros)
(Reporting by Mirko Miorelli; Editing by Matt Scuffham)
