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FIRST HALF 2023 RESULTS
RECORD HIGH ORDER BACKLOG AND CASH
IMPROVED REVENUES AND PROFITS
- Signed and started PNRR projects strengthening visibility of product roadmap
- Significantly increased order book for tactical propulsion activities
- Vega E: achieved Preliminary Design Review; M10 new DM2 engine model successfully tested on ground
- Leadership in Europe on innovative propulsion systems
- Ariane 5 successfully completed last mission
- Ariane 6 maiden flight expected in 2024 as communicated by ESA
- Minority Investment in T4i enriches the expertise in green "storable" chemical propulsion systems, electric and thrusters
- Next Vega flight scheduled for October 4th, subsequent one in spring 2024
- Awaiting Independent Evaluation Board (IEB) results to plan Vega C return to flight
Economic and financial results
- Order Backlog: EUR 1,372.6 million (+35.4% vs Dec. 22)
- Revenues : EUR 157.7 million (+17.7% vs HY 22)
- EBITDA Reported: EUR 5.2 million (+2.0 million vs HY 22)
- EBITDA Adjusted: EUR 10.5 million (+4.8 million vs HY 22)
- EBIT Reported: EUR -3.9 million (+2.3 million vs HY 22)
- EBIT Adjusted: EUR +1.4 million (+5.1 million vs HY 22)
- Result for the period: EUR 9 million (+3,8 million vs HY 22)
- Net Cash Position: EUR 102.2 million (+37.3% vs Dec. 22, +150% vs HY 2022)
Guidance 2023 confirmed
- Net order backlog: EUR 1.150-1.250 million
- Revenues: EUR 330-350 million
- EBITDA Reported: EUR 19-25 million
- Net result: EUR 2-6 million
Rome, September 8th, 2023 – The Board of Directors of Avio S.p.A., leading aerospace company listed on the STAR segment of the Italian Stock Exchange, today reviewed and approved the first half 2023 results.
In the first half of 2023, signature and start of development contracts continued as part of the initiatives for the space industry for the implementation of the "NextGenerationEU", with the aim of enhancing the technological capabilities of the Italian industry for access to space for a total value of over 285 million EUR.
The already solid order backlog of tactical propulsion activities has been further strengthened, confirming opportunities with business prospects more than doubled in terms of volumes and production rates compared to the original estimates.
Following the first development test campaign (DM1) successfully completed last year (with 24 firings for 1300 seconds cumulatively and 200 seconds as the maximum duration of the single firing), the second engine development model (DM2) test campaign is now underway for the M10 engine since August 2023 with 5 tests already performed successfully exploring high mixture ratio and pressure conditions for the engine.
On July 6th, 2023, the Ariane 5 launcher completed its last mission, successfully placing into orbit the Heinrich-Hertz and Syracuse 4B satellites. Avio contributed to the success of Ariane 5 program through the two solid rocket boosters P230, which provide 90% of the rocket thrust at liftoff as well as the core stage engine Vulcain 2 oxygen turbopumps. Avio has been part of the Ariane 5 program since the beginning and the P230 motors performed well in all the 117 flights throughout the last 27 years, demonstrating a very consistent and stable performance. In the future, Avio will continue along this path, providing P120C solid rocket boosters for the new Ariane 6 European launcher whose maiden flight is expected in 2024.
On September 4th, 2023, Avio reached an agreement with Technology for Propulsion and Innovation S.p.A. (“T4i”), a spin-off of the University of Padua specialized in innovative propulsion systems for aerospace applications which provides for a strategic investment through a qualified minority of 17% of T4i capital for an investment of approximately EUR 2.5 million.
This investment is an important step in the growth of Avio's expertise in the area of 'green' storable chemical propulsion systems, electric propulsion systems, and attitude control thrusters. The agreement will enhance the effectiveness and time-to-market for the introduction of new functional propulsion systems in our strategic plan, thanks to T4i's agility and expertise, and the synergies with Avio's infrastructure and system vision.
Vega's next launch date is scheduled for October 4th, 2023 and the subsequent one in spring 2024, while Vega C return to flight planning is currently under evaluation, awaiting the results of the Independent Evaluation Board for the analysis of the causes of the anomaly of the static firing test of Zefiro 40 motor (second stage of the Vega C launcher).
Guidance for 2023 announced last March 2023 is confirmed.
With regard to the economic and financial results, order backlog of EUR 1,372.6 million is significantly higher than 2022 Year-end the highest in the Company history for the second consecutive quarter, thanks to the contractualization of:
- Development of an in-flight demonstrator of new technologies and projects for a two stages-to-orbit light launcher propelled by a LOX-Methane engine, with a reduced environmental impact;
- Development of a new high-performance LOX-Methane engine with reduced environmental impact and realization of demonstrators of increasing complexity;
- Development of a “Multi Purpose Green Engine” for the next technologies of “In Orbit Services” and Space Logistics;
- Tactical propulsion systems, for additional Aster-30 related orders with MBDA.
Medium and long-term business prospects are also strengthened thanks to missions already contracted by Arianespace until 2027, institutional missions for the European Commission, positioning in low orbit of the satellites of the Copernicus Earth observation constellation and for the Italian Government through the European Space Agency.
Revenues of EUR 157.7 million for the first half of 2023, up 17.7% on the same period of the previous year. The increase is mainly attributable to increased development activities for the Recovery and Resilience Plan (RRP) and production activities in tactical propulsion.
Reported EBITDA of EUR 5.2 million is mainly driven by the contribution of development projects and the relief of energy costs.
Adjusted EBITDA of EUR 10.5 million also increased with respect to HY 2022.
Reported EBIT and Adjusted EBIT follow the same improvement patterns of EBITDA.
The Net Cash Position is EUR 102.2 million (vs EUR 74.4 million in December 2022 and vs EUR 40.9 million in HY 2022) principally thanks to advances received related to development activities in the RRP field.
The Half-Year Report 2023 Key Financial Highlights presentation will be available in the Investor Relations section of www.avio.com to assist the call with financial analysts and investors scheduled for Monday September 11th, 2023 at 10.00 AM CEST.
Giulio Ranzo, CEO of Avio, commented: “The half year 2023 brought a sharp increase in net order backlog and cash for both space and defense, providing substantially improved visibility for the future. Profits improved versus 2022 thanks to a lower impact from energy costs on industrial operations. The launch of Vega is scheduled for the beginning of October and another one in spring 2024 while the planning of the return to flight of Vega C is awaiting the results of the Independent Enquiry Commission relating to the anomaly of the static firing test of the Zefiro 40 motor expected by September.”