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Avio Rockets Up US Expansion with New Facility
10 Sep
Summary
- Avio's adjusted core earnings increased by 7.3% in the first half.
- A new solid rocket motor facility is being established in Virginia.
- The company is selling a minority stake to Advent International for financing.
Avio, an Italian rocket manufacturer, announced that its adjusted core earnings for the first half of the year saw a 7.3% increase compared to the previous year. This growth was fueled by a significant 17.5% rise in net revenue, reaching €276.0 million, primarily due to heightened production of its Vega-C launchers and Ariane 6 boosters.
The company is actively pursuing expansion in the United States, with plans to establish a new solid rocket motor facility in Virginia. To finance these US operations, Avio is selling a minority stake to private equity firm Advent International. CEO Giulio Ranzo indicated that some capital from this stake sale could also be allocated to mergers and acquisitions in the US.
The design phase for the Virginia plant is progressing, with a groundbreaking ceremony scheduled for the end of September. As of the end of June, Avio's order backlog stood at €2.05 billion, a slight decrease from the end of December. Following the results announcement, Avio's shares closed 2.7% higher, recovering from earlier losses.
