1H 2024 RESULTS

Highlights

• Increase in defense propulsion activities and technology development projects
• Last Vega flight successfully launches Sentinel-2C, Earth Observation Satellite of the European Commission Copernicus Program
• Zefiro-40 solid rocket motor successfully tested: Vega C return-to-flight confirmed in Q4 2024 
• Authorization from ESA to conduct Vega commercial operations starting from July
• Ariane 6 maiden flight successfully completed 
• Two new contracts with Raytheon and U.S. Army for the development and transition to production of solid rocket motors for defense applications 

Economic and financial results 

• Order backlog: EUR 1,386 million (+27 million vs. December 2023)
• Net Revenues: EUR 180.6 million (+14.5% vs. 1H2023)
• EBITDA Reported: EUR 8.1 million (+57% vs. 1H2023)
• EBITDA Adjusted: EUR 10.6 million (in line vs. 1H2023)
• EBIT Reported: EUR -0.4 million (+3.5 million vs. 1H2023)
• EBIT Adjusted: EUR 2.1 million (+0.7 million vs. 1H2023)
• Net Result: EUR -1.8 million (+2.1 million vs. 1H2023)
• Net Cash Position: EUR 21.5 million (-54.6 million vs. December 2023) 

Guidance 2024 confirmed 

• Order backlog: EUR 1.500 – 1.600 million
• Net Revenues: EUR 370 – 390 million
• EBITDA Reported: EUR 21 – 26 million 
• Net Income: EUR 6 – 10 million 

Rome, September 11 2024 – The Board of Directors of Avio S.p.A. reviewed and approved first half 2024 results.

Avio, leading aerospace company listed on the STAR segment of the Italian Stock Exchange, reports for first half 2024 an order backlog of EUR 1,386 million, in line with December 31, 2023 results. New orders in the first six months are equal to EUR 208 million, of which approximately half related to defense propulsion contracts and, for the remaining part, related to production activities of P160 boosters and additional Vega E development activities.

Net Revenues amounted to EUR 180.6 million, marking a 14.5% increase compared to first semester 2023. The increase in mainly related to defense propulsion activities and technological development projects (Next Gen EU).

EBITDA Adjusted, equal to EUR 10.6 million, excluding non-recurring costs, in line with the first semester 2023, reflects higher revenues, with a different business mix characterized by lower production of Ariane and Vega P120/P160 boosters, waiting for, respectively, the maiden flight of Ariane 6 (which was successfully completed in early July 2024) and the return to flight of Vega C confirmed in Q4 2024 (following the successful test of the Zefiro-40 solid rocket motor in May).

EBITDA Reported, equal to EUR 8.1 million, scored an increase compared to the same period of 2023, thanks to lower non-recurring costs incurred in the first semester of 2023 related to Vega C return to flight. 

EBIT Reported and EBIT Adjusted, improving compared to first semester 2023, follow the same improvement patterns of EBITDA, also benefiting from the review of the useful lives of certain production assets in connection with the simultaneous phase out of Ariane 5 and phase in of Ariane 6 in parallel with the phase out of Vega and phase in of Vega C.  

Net Cash Position amounts to EUR 21.5 million, scoring a decrease compared to EUR 76.1 million in December 31, 2023. The item reflects the typical seasonal trend of the business related to the flow-down of previously collected cash advances to subcontractors, and procurement of certain strategic long lead items of Vega C.

On September 5, 2024 Vega successfully launched the Sentinel-2C Earth Observation Satellite, a dedicated mission for the European Commission Copernicus Program. The payload was put into a Sun-Synchronous orbit at an altitude of approximately 775 kilometers. The Copernicus Sentinel-2C satellite, with its wide swath, high-resolution, and multi-spectral imaging capabilities, will support a broad range of operational applications including agriculture, water quality monitoring, natural disaster management (e.g. wildfires, volcanoes, floods), and methane emissions detection. After 12 years of service, 22 launches and more than 120 satellites deployed into space, the Vega launcher is now retiring and its legacy will continue with its successor, the Vega C launcher, starting with the next launch before the end of 2024.

During the first six months of 2024, the Company continued to focus on preparatory activities for the safe return to flight of Vega C: on May 28, 2024 the Zefiro-40 solid rocket motor, the second stage of the Vega C rocket, was successfully tested. Initial post-test review indicates that the new nozzle assembly performed as expected throughout the scheduled 94 seconds burning time of the test, simulating a nominal in-flight performance. A second firing test will be conducted in October before the return-to-flight of Vega C currently scheduled in Q4 2024.

The first months of 2024 have been marked by important discussions related to the governance at European level related to space launchers, following from the Resolution adopted by ESA Council in Seville on November 6, 2023, which set the stage for Vega launcher to be commercialized by Avio. In particular, the Resolution adopted on July 5, 2024 transferred to Avio the responsibilities to conduct Vega C commercial operations. Arianespace will remain the operator for Vega C until Vega flight 29 (VV29), scheduled for the fourth quarter of 2025. 

On July 9, 2024 Ariane 6 launcher successfully completed its maiden flight: the new launcher lifted-off from the French Guiana Space Centre, placing into orbit multiple payloads. Avio is partner of the Ariane 6 program providing the solid rocket boosters P120C and the liquid oxygen turbopumps for the core stage Vulcain 2.1 engine and the upper stage Vinci engine. The P120C motors had an optimal performance. Avio will continue to provide those boosters, which will be used in a two or four boosters configuration, depending on the payload to be transported in orbit. Avio is already working on a more powerful version of the booster, called P160, which will increase the thrust of the launcher and its payload capacity, to accomplish the missions for the Amazon Kuiper satellite constellation among the other things. The P160 will be the world largest carbon fiber monolithic motor and will also be equipped on Vega C.

The first part of 2024 saw an increase in defense demand at international level, with a corresponding growth in defense propulsion activities for the Company. In such a scenario, following the establishment of Avio USA, on July 23, 2024 the Company announced two important new contracts. The first one with Raytheon, leader in defense solutions for the U.S. Government and Allied Demand, to initiate and progress the development of critical solid rocket motors for defense applications; the second one with U.S. Army Combat Capabilities Development Command Aviation & Missile Center for the development and fast-prototyping of a solid rocket motor for surface-to-air applications. Together with the development, both contracts pave the way for a future transition to production.

2024 Guidance announced last March 2024 is confirmed. 

“The first part of 2024 was marked by many important events: after Vega’s last flight, which was successfully completed, Vega C launcher will pick up the legacy of its predecessor and ensure autonomous access to space for Europe in the future, together with Ariane 6”  said Giulio Ranzo, CEO of Avio. “At the same time, the important news related to the defense propulsion sector have marked a new trajectory and exciting new goals for the future of the Company's business: aware of our experience, with passion and determination we will start working with our new American partners to support them and achieve increasingly challenging goals”.   

1H 2024 results presentation will be made available in the “Investors” section of www.avio.com and presented during the conference call with financial analysts and investors scheduled for Thursday September 12, 2024 at 10.00 AM CEST.

The Executive Officer for Financial Reporting, Alessandro Agosti, declares in accordance with Article 154-bis, paragraph 2, of the Consolidated Law on Finance that the accounting information in the present press release corresponds to the underlying accounting documents, records and entries.