Italian rocket builder Avio’s Board of Directors has approved a €400 million capital increase to fund an expansion of its manufacturing capacity to meet rising demand in the global space and defence markets.
Announced on 12 September, the capital raise is part of a new ten-year business plan targeting an average annual growth rate of about 10% in turnover and more than 15% in core profit (EBITDA). This growth will be driven by a higher Vega C launch cadence, the introduction of Vega E, continued participation in the Ariane 6 programme, and the construction of a new defence production facility in the United States, which is expected to be completed by 2028.
According to an Avio press release, the company expects to complete the capital increase by the end of the year. It will be executed in one or more tranches and is fully backed by a pre-underwriting agreement with Jefferies and Morgan Stanley. However, it is still subject to a shareholder vote, which will take place on 23 October during an Extraordinary Shareholders’ Meeting.
“The acceleration of growth opportunities in the space and defence markets in Europe and the United States will require the strengthening of the company’s production capacity, both in Italy and in the United States, together with greater vertical integration.”
In addition to its capital increase, Avio has indicated that it is also pursuing various federal and state financing solutions, including non-repayable grants, to further support the expansion of its U.S. defence business. According to the company, by helping to bridge the current gap between solid-rocket-motor supply and demand, it expects to access a total addressable market valued at roughly $1.7 billion.
As Avio announced its capital increase plans, it also published its financial results for the first half of 2025. The company’s revenue saw a 30 percent boost to €235 million, driven by increased Vega C launch activity, after its reintroduction in late 2024, and the securing of new defence contracts. Adjusted operating profit rose to €11.4 million, and the company kept its large €1.67 billion order backlog intact. While it reported a net loss of €0.2 million, this marks a €1.6 million improvement compared with the same period last year.
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