Want to see IT:AVIO full AI Analyst Report?
Top Page
Avio S.p.A.
(AVIO)
Select Model
Select Model
Rating:68Neutral
Price Target:
€31.00
▲(6.90% Upside)
Action:Reiterated
Date:09/15/26
The score is primarily supported by strong financial resilience (very low leverage and materially improved 2025 cash generation) and a constructive earnings-call outlook (confirmed guidance, strong backlog, and multi-year growth narrative). Offsetting this, technicals are weak (below major moving averages with negative MACD) and valuation is expensive (high P/E with low dividend yield), which limits the overall rating despite the fundamental progress.
Positive Factors
Sustained growth and backlog
Sustained double-digit growth across four years, combined with a backlog above EUR 2 billion, supports durable visibility for future activity. This indicates broadening demand and provides a foundation for continued investment in launch, propulsion, and defense capabilities over the next several quarters.
Negative Factors
Thin and compressed margins
Revenue growth is not yet translating into strong profitability, as compressed gross and EBITDA margins leave limited room for execution setbacks or cost inflation. Persistently thin net margins could constrain internally funded expansion and make earnings more sensitive to program mix and delivery timing.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained growth and backlog
Sustained double-digit growth across four years, combined with a backlog above EUR 2 billion, supports durable visibility for future activity. This indicates broadening demand and provides a foundation for continued investment in launch, propulsion, and defense capabilities over the next several quarters.
Read all positive factors
Avio S.p.A. (AVIO) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€1.44B
Dividend Yield0.51%
Average Volume (3M)633.87K
Price to Earnings (P/E)50.3
Beta (1Y)0.82
Revenue Growth13.94%
EPS Growth208.59%
CountryIT
Employees1,643
SectorGeneral
Sector StrengthN/A
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.58
Shares Outstanding50,064,810
10 Day Avg. Volume619,931
30 Day Avg. Volume633,872
Financial Highlights & Ratios
PEG Ratio1.83
Price to Book (P/B)1.26
Price to Sales (P/S)1.48
P/FCF Ratio6.26
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€40.00Price Target Upside37.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.33
Revenue Forecast (FY)€612.54M
Avio S.p.A. Business Overview & Revenue Model
Company Description
Avio S.p.A., together with its subsidiaries, specializes in the design, development, and manufacturing of advanced propellant propulsion systems for space launch vehicles, catering to both domestic Italian and international markets. Its operations...
How the Company Makes Money
Avio makes money primarily by (1) delivering launch-system programs and propulsion hardware under long-term contracts and institutional programs, and (2) providing services linked to launcher development, manufacturing, integration, and operationa...
Avio S.p.A. Earnings Call Summary
Earnings Call Date:Sep 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call was strongly positive, driven by approximately 20% annual growth over four consecutive years, 18% first-half revenue growth, improved profitability, a backlog above EUR 2 billion, successful launch milestones, rising defense and launch demand, and substantial funding for expansion. The company also acknowledged execution challenges involving supply-chain readiness, uncertain defense-order timing, planned investment, and a EUR 60 million first-half reduction in net financial position, but confirmed 2026 guidance and remained on track with its strategic plans.Positive Updates
Sustained Double-Digit Revenue and Profit Growth
First-half 2026 delivered sustained and solid double-digit growth in revenues and profits. The company said it has maintained approximately 20% growth consistently across the last four years and confirmed its year-end 2026 guidance.
Negative Updates
Net Financial Position Declined During the First Half
Net financial position decreased by almost EUR 60 million in the first half, reflecting cash disbursements for capital expenditures in Italy and the U.S. and the progressive release of previously received advance payments to subcontractors and suppliers.
Read all updates
Q2-2026 Updates
Positive
Negative
Sustained Double-Digit Revenue and Profit Growth
First-half 2026 delivered sustained and solid double-digit growth in revenues and profits. The company said it has maintained approximately 20% growth consistently across the last four years and confirmed its year-end 2026 guidance.
Read all positive updates
Company Guidance
Avio is confirming guidance for the end of 2026 and expects seven to eight launches of Ariane and three launches of Vega by year-end; P160C production could go beyond the rate of 35 boosters a year, with a possible flight rate six for Vega and maybe flight rate 12 for Ariane, while capacity expansion could take between two and a half years. The liquid propulsion demonstrator will be ground-tested before the end of this year and tested in flight next year, U.S. capabilities are expected to generate profits by themselves pretty much by the end of 2028, beginning of 2029, and the 2026 and 2027 CapEx deployment plan is not expected to change much.Avio S.p.A. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
86
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 610.99M | 593.83M | 483.99M | 343.70M | 73.22M | 324.14M |
| Gross Profit | 119.71M | 115.79M | 130.03M | 113.89M | 72.40M | 96.64M |
| EBITDA | 44.02M | 34.41M | 23.97M | 22.62M | 21.45M | 30.15M |
| Net Income | 20.72M | 10.48M | 6.09M | 6.49M | -435.00K | 8.48M |
Balance Sheet | ||||||
| Total Assets | 1.67B | 1.66B | 1.09B | 1.06B | 1.29B | 1.24B |
| Cash, Cash Equivalents and Short-Term Investments | 545.47M | 291.85M | 101.68M | 95.59M | 131.40M | 104.61M |
| Total Debt | 9.74M | 10.12M | 11.59M | 19.46M | 56.95M | 47.45M |
| Total Liabilities | 958.36M | 955.58M | 779.52M | 744.75M | 982.10M | 926.12M |
| Stockholders Equity | 701.40M | 697.32M | 302.83M | 300.62M | 293.66M | 302.48M |
Cash Flow | ||||||
| Free Cash Flow | 118.81M | 140.33M | 25.10M | 6.14M | 33.22M | 7.54M |
| Operating Cash Flow | 167.53M | 168.08M | 60.26M | 42.48M | 65.74M | 41.26M |
| Investing Cash Flow | -67.46M | -44.25M | -35.16M | -38.85M | -34.23M | -33.71M |
| Financing Cash Flow | 358.90M | 376.33M | -19.01M | -39.44M | -4.72M | -27.59M |
Avio S.p.A. Technical Analysis
Neutral
29.00
Price Trends
30.12
Negative
31.66
Negative
33.05
Negative
Market Momentum
-0.16
Negative
49.44
Neutral
26.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:AVIO, the sentiment is Neutral. The current price of 29 is below the 20-day moving average (MA) of 29.01, below the 50-day MA of 30.12, and below the 200-day MA of 33.05, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 49.44 is Neutral, neither overbought nor oversold. The STOCH value of 26.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:AVIO.
Avio S.p.A. Peers Comparison
UnderperformOutperform
Sector (55)
IT:AVIO
Avio S.p.A.
29.17
-13.47
-31.59%
IT:FCT
Fincantieri S.p.A.
12.57
-12.73
-50.32%
IT:LDO
Leonardo Spa
47.64
-4.53
-8.68%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.