FY 2024 RESULTS

ORDER BACKLOG AND REVENUES ABOVE GUIDANCE
VEGA C BACK TO ORBIT, SUBSTANTIAL GROWTH IN DEFENSE BUSINESS

Highlights

• Backlog and revenues above Guidance
• Success for Vega last flight, Vega C back to orbit with Sentinel-1C
• ESA decisions: authorization for Avio to conduct Vega C commercial operations, new contracts for Vega E development and to increase Vega C cadence up to six launches per year
• Ariane 6 maiden flight and 1st commercial flight successfully completed
• Substantial growth of defense business: contracts in USA with Raytheon and U.S. Army and in Europe with MBDA Italia
• Proposal to Shareholders' meeting of a dividend distribution in 2025 for EUR 3.75 million (Euro 0.14841 per share)

Economic and financial results

• Order backlog: EUR 1.724 million (+26.9% vs. December 2023)
• Net Revenues: EUR 441.6 millions (+30.3% vs. December 2023)
• EBITDA Reported: EUR 25.8 million (+25.9% vs. December 2023)
• EBITDA Adjusted: EUR 31.3 million (+11.6% vs. December 2023)
• EBIT Reported: EUR 8.4 million (+60.4% vs. December 2023)
• EBIT Adjusted: EUR 13.8 million (+8.6% vs. December 2023)
• Net Income: EUR 6.4 million (-3.6% vs. December 2023)
• Net Cash Position: EUR 90.1 million (+14.0 million vs. December 2023) 

Guidance 2025

• Order backlog: EUR 1.700 – 1.800 million
• Net Revenues: EUR 450 – 480 million
• EBITDA Reported: EUR 27 – 33 million
• Net Income: EUR 7 – 10 million 

Rome, March 13th 2025 – The Board of Directors of Avio S.p.A. today reviewed and approved the consolidated results of the Company as of December 31st, 2024.

Avio, leading aerospace company listed on the STAR segment of the Italian Stock Exchange, reports for 2024 an order backlog above Guidance targets equal to EUR 1,724 million, scoring a +27% compared to December 2023. Orders reached a record amount above EUR 800 million, mainly thanks to new contracts for completion of Vega E development and for defense propulsion.

Net revenues of EUR 442 million are above Guidance targets, marking a 30% growth compared to December 2023 thanks to the increase of Vega development activities, as well as those related to defense propulsion and technology development projects (Next Gen EU).

EBITDA Adjusted of EUR 31.3 million, excluding non-recurring costs, in line with Guidance targets and increasing by 11.6% compared to December 2023, is driven by revenues contribution trend and lower energy costs.

EBITDA Reported of EUR 25.8 million, is also in line with Guidance targets with a 25.9% increase compared to 2023. EBITDA reported also reflects lower non-recurring costs equal to EUR 5.5 million (EUR 7.5 million in 2023), mainly for Vega C return to flight.

EBIT Reported and EBIT Adjusted, respectively equal to EUR 8.4 and 13.8 million in 2024, improve if compared to EUR 5.2 and 12.7 million of 2023, reflect the same improvement patterns of EBITDA, net of the depreciations, which in turn raise mainly for increase of Vega C cadence and investment in Information Technology to enhance the production process.

Net Income of EUR 6.4 million is in line with 2023 figures. 

Net Cash Position equals to EUR 90.1 million, increasing by 14 million compared to December 2023. 

The year 2024 marked an important turning point in Avio's activities, both in the space sector and in the defense business development. 

On September 5, 2024 after 12 years of service, 22 launches and more than 120 satellites deployed into space, the Vega launcher performed its last flight successfully launching the Sentinel-2C earth observation satellite, a dedicated mission for the European Commission Copernicus Program. Vega legacy was taken up by its successor, the Vega C, which on December 6 successfully launched satellite Sentinel-1C. Vega C is capable to deliver up to 2,350 kilograms in sun-synchronous orbit, delivering its payloads on three different orbits on the same mission, instead of the two previously possible with Vega thanks to the AVUM+ engine that allows for seven re-ignitions. 

2024 has 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 sets 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: following such resolution, on December 18, 2024 Avio signed with ESA a frame contract for the procurement of launch services for the benefit of future agency’s missions and a first Work Order for the launch of the FORUM Earth observation mission (short for short for Far-infrared Outgoing Radiation Understanding and Monitoring) which will be launched by Avio as launch service provider on board a Vega C in 2027. In this context, on January 28, 2025 Avio signed a trilateral agreement with Arianespace and the European Commission for the transfer of the Copernicus Framework Contract on Vega C from Arianespace to Avio. At the same time, Avio has signed an amendment to add one additional Copernicus satellite launch to the Framework Contract in replacement of the Sentinel-1D, which will be launched by Ariane 6.

In the last part of the year, two contracts were also signed with ESA for a total value of around EUR 350 million, related to the development of the new Vega E launcher and to the upgrade to the Vega C ground system to increase the launch cadence. In particular, the first contract will allow for further development of Vega C’s next iteration, Vega E, up to the on-ground qualification stage of the new launch system. The contract covers all aspects of the launch system such as rocket assembly, launch pad building, fuelling, launch pad systems and logistics followed by integrated and combined tests of the complete Vega E launch system. Vega E will fly in three stages instead of four from a new launch pad to be built on the former Ariane 5 launch complex. Vega E will have a liquid-fuelled methane-liquid oxygen upper stage replacing both Zefiro 9 and AVUM. The new configuration of the launcher will allow an increased payload performance capability up to 3 tons with respect to the current 2.3-ton payload performance of Vega C. The second contract relates Vega C and will enhance ground operations to increase the number of flights per year up to six launches per year and shorten the time between two consecutive launches. An integration building will be made for the Vega C launcher at Europe’s Spaceport in French Guiana, which will allow technicians to work on two rockets being assembled simultaneously – one on the launch pad and one in the new assembly building – and run two launch campaigns in parallel.

Following its successful maiden flight on July 9, 2024, Ariane 6 successfully completed its first commercial flight on March 6, 2025. Avio contributes to the 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. In the future Avio will continue to provide P120C 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.

2024 saw continued international growth in defense demand, with a corresponding increase in the company's orders to EUR 259 million, more than doubled vs. 2023. 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. The development of the defense business also progressed at European level, with an increase in orders from current customers for existing products (i.e. Aster / CAMM-ER): among the most significant orders closed at year-end, is worth mentioning the contract signed between Avio and MBDA Italia for the supply by Avio of rocket motors for CAMM-ER missiles manufactured by MBDA and amounting close to EUR 150 million.

The Board of Directors also approved the Guidance for 2025 results, as follows:

Order backlog: EUR 1,700 – 1,800 million

Net Revenues: EUR 450 – 480 million

EBITDA Reported: EUR 27 – 33 million 

Net Income: EUR 7 – 10 million 

In order to allow for greater flexibility in the remuneration of its shareholders, the Board of Directors also approved a change to the dividend policy and, due to the results achieved, also resolved to propose to the Shareholders' Meeting scheduled for 30 April 2025, the distribution of a dividend of EUR 3.75 million (EUR 0.14841 per share).

The Board of Directors also proposed that the dividends are paid out starting from May 7th , 2025, with coupon date on May 5th, 2025 and record date on May 6th, 2025 in accordance with Article 83-terdecies of the CFA.

As of March 13, 2025, Avio holds 1,091,207 own shares, equivalent to 4.14% of the share capital of the Company.

Giulio Ranzo, Chief Executive Officer of Avio, commented: “2024 marked the success of the last flight of Vega and of VV25 mission of Vega C. The important agreements made at European level during the year will permit an increase of the launch cadence of Vega C in the future and to continue the development of Vega E launcher. We are proud to be able to contribute to Europe's independent access to space”. Ranzo added: “Avio is also ready to meet the growing demand for propulsion systems in the defense sector, leveraging on its track record and seizing new opportunities in Europe and US”. 

FY2024 results presentation will be made available in the “Investors” section of www.avio.com and presented during the call with financial analysts and investors scheduled for Thursday March 13, 2025 at 5.30 PM CET. 2024 Financial Report will be made available in accordance with the Law.

Other motions 

• Shareholders’ meeting Call 

The Board of Directors of Avio S.p.A. has called the Shareholders’ meeting for April 30, 2025. The related call notice shall be published on the “Investors” section of the company website and on "eMarket STORAGE" storage mechanism (www.emarketstorage.com), where also the report to the shareholders’ meeting on the items of the agenda shall also be made available in accordance with the Law.

Other information

• Fulfilment of the exercise condition of Sponsor Warrants

Pursuant to art. 7.1 of the regulation of “Sponsor Warrant Space2 S.p.A.” (the “Regulation”), Avio S.p.A. informs that the condition for the exercise of the Warrants, as per art. 3.1 of the Regulation, has been fulfilled. For the terms and conditions of exercise, please refer to the documentation available in the Investors section of the Company's website.  

• Avio achieves Gender Equality Certification

Avio obtained the gender equality certification, issued by RINA in compliance with UNI/PdR125:2022, a significant achievement which highlights the commitment undertaken over the years in promoting equal opportunities and the development of a fairer and more inclusive work environment, in view of the sustainability strategy adopted by the Company. In order to guarantee a structured and integrated approach, Avio set up a Steering Committee, chaired by Roberto Italia - Chairman of the Board of Directors, and also composed of the other members of the Sustainability Committee, Marcella Logli and Elena Pisonero, with the aim of implementing the strategic and sustainability plan in a working environment in which each person can fully exploit their skills and capabilities.

• Resignation of a Director

The Company announces that the Board of Directors acknowledged that Mr. Luigi Pasquali - appointed by the Shareholders‘ Meeting of 28 April 2023 with a three-year mandate on the basis of the list presented by the outgoing Board of Directors - has resigned for personal reasons with effect at the termination of the Shareholders’ Meeting called to approve the Company's financial statements as of 31 December 2024. The Company's Board of Directors will, as soon as possible, take the necessary steps to replace the resigning Director in compliance with the recommendations provided for by the Corporate Governance Code, to which Avio adheres, and applicable regulations. The Board of Directors would like to thank Mr. Pasquali for his commitment, quality and professional contribution as a member of the Company's Board of Directors. It should be noted that as of today, on the basis of the information available to the Company, Mr. Pasquali does not hold shares in the Company's capital and is not entitled to indemnities or other benefits following the termination of his office.

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The Board of Directors of Avio S.p.A. has approved the 2024 Financial Report integrated with the 2024 Sustainability report, in line with the requirements under Legislative Decree 125/2024.

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