Avio Boosts 2025 Revenue Forecast on Strong Momentum

Avio Raises 2025 Financial Projections

Italian space propulsion company Avio SpA (BIT:AVIO) has upwardly revised its full-year 2025 guidance. The update reflects strong commercial momentum and accelerated execution of existing contracts.

Updated Financial Outlook

The company now forecasts its order backlog to be between €2.1-2.2 billion, a significant increase from the previous range of €1.7-1.8 billion. Consequently, group revenue projections have been raised to €510-540 million, up from the earlier guidance of €450-480 million. Avio's net cash position is also approaching €600 million, surpassing analyst expectations.

Market Implications and Earnings

Despite the higher revenue forecast, Avio maintained its guidance for EBITDA (€27-33 million) and net income (€7-10 million). This may be due to contingencies on long-term contracts with low initial margin recognition or potential upfront costs associated with its planned US expansion being brought forward into 2025.

Summary

The revised guidance signals Avio's transition into a significant growth phase across both its space and defense propulsion sectors. The market will be watching how the company manages costs as it scales operations to meet increased demand.

FAQ

Q: Why did Avio raise its 2025 revenue guidance?
A: The revision is based on strong commercial momentum and faster-than-expected execution of contracts.

Q: What are the new financial targets for 2025?
A: Avio projects revenue of €510-540 million and an order backlog of €2.1-2.2 billion.

Source: Investing.com