Rocket maker Avio's first-half core profit grows as US growth comes into focus

Avio, the Italian rocket manufacturer, reported a 7.3% year-on-year increase in adjusted core earnings during the first half of 2026, reflecting continued growth in its launcher business and increasing focus on expanding its presence in the United States. The company is currently establishing a solid rocket motor manufacturing facility in Virginia, which is expected to strengthen its production capabilities and support future U.S. programs. Design work for the Virginia facility is progressing, with a groundbreaking ceremony planned for the end of September. To help finance its U.S. expansion, Avio is selling a minority stake to private equity firm Advent International. CEO Giulio Ranzo said that part of the proceeds could also be used for potential acquisitions in the United States, allowing Avio to accelerate its production ramp-up and expand its industrial capabilities. The company reported an order backlog of approximately €2.05 billion at the end of June, although this was 5.4% lower than at the end of December. Overall, Avio is pursuing an ambitious international expansion strategy focused on increasing launcher production, establishing U.S. manufacturing capacity, strengthening its supply chain, and potentially acquiring American companies. The Virginia facility and possible U.S. M&A activity are expected to play an important role in Avio's long-term growth and its ability to serve the expanding U.S. space and defense market.