Italian rocket maker Avio's quarterly earnings rise 30%

• Net revenue rose 19% to 128.5 million euros, exceeding analyst expectations of 115 million euros, with EBITDA of 5.2 million euros beating the forecasted 4.6 million euros
• The company confirmed 2026 guidance of 27-35 million euros in EBITDA and 8-13 million euros in net profit, with this quarter representing the expected weakest performance of the year
• Order intake reached 80 million euros in Q1, primarily from Vega launcher development and a U.S. army defense contract, with a Vega C launch scheduled for May 19 carrying the ESA SMILE satellite

Summary

Italian rocket manufacturer Avio reported strong Q1 2026 results, with EBITDA rising approximately 30% year-over-year to €5.2 million ($5.9 million). Net revenue increased 19% to €128.5 million, driven by Vega C production activities and defense business expansion, surpassing analyst expectations.

Key Financial Metrics:

• Order backlog: €2.12 billion
• Q1 order intake: ~€80 million
• 2026 EBITDA guidance: €27-35 million (confirmed)
• 2026 net profit guidance: €8-13 million (confirmed)

Performance Context:

Brokerage Equita had anticipated this to be the "weakest quarter of the year," forecasting revenues of €115 million and adjusted EBITDA of €4.6 million—both figures exceeded by actual results. Revenue growth offset higher costs associated with Avio's U.S. operations.

Business Drivers:

Quarterly orders primarily came from Vega family launcher development activities and a U.S. Army defense contract. The European Space Agency (ESA) remains the primary customer outside the U.S. Army contract. Future orders from Raytheon and Lockheed Martin for Avio's new U.S. plant are anticipated.

Upcoming Catalyst:

A Vega C launch is scheduled for May 19, carrying the ESA and Chinese Academy of Sciences' SMILE satellite, which could further validate the company's launch capabilities.

Market Implications:

The better-than-expected results demonstrate Avio's ability to scale production and diversify revenue streams through defense contracts, positioning the company favorably within the growing space launch and defense sectors.