Avio 1H 2026 Results10 SEPTEMBER 2026
2Disclaimer
This document hasbeen prepared byAvio S.p.A.(“Avio” orthe“Company”) .This document might contain certain forward -looking statements that reflect theCompany’s management’s current views with respect tofuture events and financial and operational performance oftheCompany and itssubsidiaries .These forward -looking statements arebased onAvio’s current expectations and projections about future events .Because these forward -looking statements aresubject torisks and uncertainties, actual future results orperformance may differ materially from those expressed inorimplied bythese statements due toany number ofdifferent factors, many ofwhich are beyond theability ofAvio tocontrol orestimate .You arecautioned nottoplace undue reliance ontheforward -
looking statements contained herein, which aremade only asofthe date ofthis presentation .Avio does not undertake any obligation topublicly release any updates orrevisions toany forward -looking statements toreflect events orcircumstances after the date ofthis presentation .Any reference topast performance ortrends or activities ofAvio shall notbetaken asarepresentation orindication that such performance, trends oractivities willcontinue inthefuture .This document does notconstitute anoffer tosellorthesolicitation ofanoffer tobuy Avio’s securities, nor shall thedocument form thebasis oforberelied oninconnection with any contract or investment decision relating thereto, orconstitute arecommendation regarding thesecurities ofAvio .
3Agenda
Highlights
Giulio Ranzo, Chief Executive Officer 1.
1H 2026 Financials Roberto Carassai, Chief Financial Officer2.
4▪VV29 mission successfully completed with Avio new Launch Service Operator of Vega. Ready for VV30 mission in September ▪New P160C boosters successfully power Ariane’s missions. Rapid Ariane 6 cadence increase fuels
production rate
▪Liquid propulsion demonstrator integration completed, to be ground -tested in 2026 ▪U.S. project progressing as expected: C -level staffing plan nearing completion, ground -breaking ceremony approaching at the end of September ▪Advent to invest ~€110 million to support Avio's expansion in Italy and the United States ▪Continued high -teens growth in revenues and EBITDA vs. 1H 2025 ▪FY 2026 Guidance confirmedSustained solid double -digit growth in revenues and profits
5 Success for VV29 mission ▪OnMay 19thVegaC’sVV29mission launched ESA’s andCAS’ Solar wind Magnetosphere Ionosphere Link Explorer (SMILE) scientific satellite .The2,250kilograms satellite willmeasure thesolar wind and itsdynamic interactions with theEarth’s magnetosphere ▪Themission isthefirst operated byAvio ,reaffirming itskeyroleinsupporting ESA’s missions Source: ESA, CNES, ArianespaceEncapsulation of SMILE
Fairing ready
Measurements of SMILE VV29 mission on launchpad VV29 lift -off 5
6 P160C motors successfully power Ariane 6 for the first time ▪OnJune 17thAriane 6completed the VA269 mission, deploying inorbit 36Amazon Leosatellites ▪The launch was the first performed inafour-booster configuration using theP160Cfirst stage booster, built on theproven P120Ctechnology and introducing significant
performance increase
Source: ESA, CNES, Arianespace, Amazon LeoInstallation of 4 P160C boosters on central core P160C separation VA269 on launchpad 6
7Ariane
Vega
#4 launches
#3 launches2025
2026
Avio current assumption of contracted flight backlog roll -outAriane and Vega current view of flight manifest ~30 flights currently in backlog
Future launches:
➢Satcom mega -constellations
➢Galileo (EU)
➢Military sats
IRIS2major upside
VA267
Feb 12
VV29
~15flights currently in backlog
Future launches:
➢Sentinel -3C (EU)
➢IRIDE (EU)
➢PLATiNO
➢… more opportunities in
pipeline
1stlaunch
operated
by Avio
May 19VA268
Apr 30
VA269
June 17
1stlaunch
with 4 P160
boosters
VA270
Aug 27
VV30
Set for
Sep 14
8 LOX-CH liquid propulsion demonstrator integration completed Flight Demonstrator integrated DMX2 engine 8
9SAMP/T NG system fuels demand for ASTER 30 in EU ▪OnJune 18thAvio signed with MBDA inFrance a production order forthesupply ofsolid rocket motors andrelated aerodynamic surfaces fortheASTER 30 defense system, with atotal value exceeding €35
million
▪The contract issupporting European defense in response togrowing demand forthe SAMP/T NG anti-missile defense system Photo credits: Eurosam Launcher module of a SAMP/T NG air defense system
10Execution of Avio’s U.S. strategy on track ▪Sitesecured :~1,200 acres ofindustrial land purchased inApril inthe Southern Virginia Multimodal Park ▪~$65morder signed inMarch, consolidating trend fordefense business
growth
▪U.S.factory eligible ofupto$97.7mincentive package ▪Establishing Avio USA leadership team :recruitment oftheCEO’s direct reports nearly completed (e.g.,CFO, COO, SVP ofEngineering, SVP ofBusiness Development)Milestones
achieved
In progress▪Discussion oflong term commitments with customers isongoing ▪Capital deployment progressing :process equipment long-lead items
orders ongoing
▪Design ofthenew plant moving forward ▪Ground -breaking ceremony scheduled fortheendofSeptember
11Sources: Avio analysis on Janes Database, DoD budget Weapons, public information, external advisors' contributions2025 2026 2027 2028 2029 20306.1
3.66.9
3.87.7
4.08.3
4.48.6
5.19.3
5.8 5.46.9US & EU Missile Propulsion Supply and Demand (propellant k tons / year) –June 2026SRM unmet demand now up to 40% wider vs. last year’s estimate New estimate June 2026 -US + Europe demand New estimate June 2026 - US + Europe supplyOld estimate Sept 2025 - US + Europe demand Old estimate Sept 2025 - US + Europe supplyAverage unmet demand: 3,400 tons gap +40% of average unmet demand 2025 – 2030 vs. last year’s estimate of 2,400 tons per year
12Advent to invest ~€110m to support Avio's expansion ▪OnJuly 6thAvio and Advent entered into aninvestment agreement forAdvent’s subscription ofa ~€110mreserved capital increase, atanissue price per share equal to€33.40,equivalent to approximately ~7%ofAvio’s share capital(1) #17 offices in 5
continents (2)
$94bn
AUM (3)
#458
transactions
across 44
countries (2)A leading U.S. headquartered private equity firm……with more than $15bn enterprise value invested across the global defense sector
March 2026
Investment in Saronic
UndisclosedMarch 2026
Investment in Shield AI
UndisclosedSeptember 2025
Acquisition of
Attalon (Coherent A&D)
$400m
May 2023
Acquisition of
Maxar Technologies
$6.4bn
August 2022
Acquisition of
Ultra Electronics
$3.6bn
January 2020
Acquisition of
Cobham
$5.0bn
Majority U.S. focus The transaction is aiming to accelerate Avio’s long term strategy by including a well -known investor in the shareholder base who brings deep relationships across primes, sub -primes and U.S.
government agencies
(1)On a pre -money basis (2)As of 30 June 2026 (3)Assets under management as of March 31, 2026 and include assets attributable to Advent advisory clients as well as employee and third -party co -
investment vehicles
13Solid double -digit growth in revenues and profit since 2023
338,7441,6541,7
2023A 2024A 2025A 2026E+19%Figures in €m Revenues 2023A - 2026E
22,429,636,4
2023A 2024A 2025A 2026E20%EBITDA Reported(2) 2023A - 2026E (1)Mid-point of 2026 Guidance (2)Net of AVIO USA operating costs (1) (1) Avio USA costs -1,9 -3,7 -4,2 -8 (1)
14Agenda
Highlights
Giulio Ranzo, Chief Executive Officer 1.
1H 2026 Financials Roberto Carassai, Chief Financial Officer2.
15Backlog standing at >€2.0bn Main commentsFigures in €m Net order backlog evolution 2022 –1H 2026 ▪Order intakes in 1H 2026 amounting to ~€160m including :
➢Launch systems ~€50m: mainly related to development contracts on Vega C and Vega
E launchers
➢Defense propulsion ~€110m: related to production contract with MBDA in France (ASTER 30) and development contract in USA for development, qualification and initial production of a solid rocket motor for air defense applications ▪Production accounts for ~70% of backlog, Development for ~30%
7249701.130 1.1651.045139155385
328
176250439616
675 114
2022 2023 2024 2025 1H 20261.0141.3591.7242.1662.048
+29%
Launch systems Space propulsion Defense propulsion51%33% 16%% on backlogAdditional ~€60m of Vega C production contract signed in July
16Revenues continue to increase at a double -digit pace Net revenues | Breakdown by Line of Business [#] % on net revenues21% 61%Net revenues | Breakdown by ActivityFigures in €m 18% [#] % on net revenues153,2168,841,757,340,050,0
1H 2025 1H 2026234,9276,0+18%
Launch systems
Space propulsionDefense propulsion139,2185,892,589,0
1H 2025 1H 2026234,9276,0+18%
Production Development40%
59%33%
67% ~€40m of revenues growth vs. 1H 2025, mainly due to the increase in production activities in Launch systems (Vega production), in Space propulsion (increase of boosters’ production for Ariane 6) and in Defense propulsion18%
65%17%
171H 2026 results vs. 1H 2025 Avio Group | Main economicsMain comments 1.
3.Revenues recorded double -digit growth on a half-year basis for the fourth consecutive year (+€41m, +18% vs. 1H 2025) , demonstrating continuing ability to execute 2.EBITDA reported increase (+€1.9m, +19%) driven by higher revenues and margins mostly dependent on the profitability of the space business
+12.9
-2.9
+14.8
-2.91.
2.
3.
(1)Excluding non -recurring costs equal to €1.4m in 1H 2025 and €0.3m in 1H 2026 (2)EBIT Adjusted equal to €1.4m in 1H 2025 and €1.5m in 1H 2026(1) (2)EBIT reported increase (+€1.2m) driven by the same underlying EBITDA dynamics, despite higher depreciation related to increased Vega C cadence 4.Net Income increase (+€9.3m) reflects improved financial income on average cash available, and fair value adjustment of investments4.
1H 2025
Actual (€m)1H 2026
Actual (€m)Delta
(€m)Delta
(%)
NET REVENUES 234,9 276,0 41,2 17,5%
EBITDA REPORTED 10,0 11,9 1,9 19,1%
% on net revenues 4,3% 4,3%
EBITDA ADJUSTED 11,4 12,2 0,8 7,3%
% on net revenues 4,8% 4,4% EBIT REPORTED 0,0 1,2 1,2 n.m.
% on net revenues 0,0% 0,4% NET INCOME (0,2) 9,2 9,3 n.m.
% on net revenues -0,1% 3,3%
18Net Financial Position bridge Figures in €m
591,7
535,711,9
28,0 5,334,0 0,6 Net Financial Position 31 Dec 2025Reported
EBITDAChange in
Working CapitalChange in provisions Gross Capex Other Net Financial Position 30 Jun 2026
19AVIO Group | Sources and usesMain commentsFigures in €m •Working capital structurally negative, increasing due to the flow -down to suppliers of advance payments collected in Q4 2025 •Net Fixed assets increase mainly related to capex for land acquisition for Avio USA plant, higher Vega cadence, and testing infrastructure •Net financial position reduction reflects investments made and the working capital increase in the period 1.
2.
3.1H 2026 results vs. 2025 | Sources and uses 1.
3.2.
31 DEC 2025
Actual
(€m)30 JUN 2026
Actual
(€m)Delta
(€m)
WORKING CAPITAL (355,2) (327,3) 28,0
DEFERRED TAX ASSETS 87,6 87,5 (0,1)
PROVISIONS (42,4) (37,1) 5,3
GOODWILL AND OTHER INTANGIBLE 83,0 81,4 (1,6)
FIXED ASSETS 342,7 370,5 27,9
FINANCIAL RECEIVABLES 1,2 1,2 0,0
NET INVESTED CAPITAL 116,8 176,3 59,5
NET FINANCIAL POSITION 591,7 535,7 (56,0)
EQUITY (708,5) (712,0) (3,5)
TOTAL SOURCES (116,8) (176,3) (59,5)
20Quarterly evolution of EBITDA and Net Financial Position Figures in €m EBITDA Reported | Quarterly evolution Net Financial position | Quarterly evolution4,010,015,232,3
5,211,9
3M 6M 9M FY
2025 202659,075,3
47,2
3M 6M 9M FY559,1
535,7591,7
21FY 2026 Guidance confirmed
NET REVENUESBACKLOG
EBITDA REPORTED(1)
NET INCOME
€m
2.000€m
2.100
€m
560€m
590 €m
27€m
35 €m
8€m 13
(1)Implying an EBITDA Adjusted ranging from €29m to €37m assuming €2m as non recurring costs▪ Backlog including firm orders only and expected to remain high after record level achieved in 2025 ▪ Growth vs. FY2025 largely driven by space business, with increasing contribution of the defense business ▪ Group EBITDA aligned with the Business Plan ▪ EU activities EBITDA growing ▪ AVIO USA operating costs growing ( €7-9m in 2026) ▪ Potential risk on higher energy costs ▪ Net income driven by both operating performance and financial performance on available cash
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