The first partner (28,75%) withdraws from the launchers, concentrating on satellites with Airbus and Thales

Avio SpA is redefining its strategic trajectory, projecting itself decisively onto the global and defense markets, particularly in the United States, after shareholders approved a capital increase of up to €400 million (approved yesterday, 23 October 2025; see AVIONEWS). The cash injection is the tool to finance an ambitious ten-year growth plan which, as highlighted by the Colleferro, Rome-based company, aims to strengthen production capacity in Italy and abroad and to increase vertical integration.

The core of Avio’s strategic plan is the transatlantic expansion. The capital raised will primarily be used to build a new US facility dedicated to the production of Solid Rocket Motors (SRM). This investment is crucial because it aims to close the current gap between demand and supply of SRMs in the US market, a defense segment estimated to be worth about $1.7 billion and projected to grow strongly. Avio’s objective is to capture significant market share.

At the same time, the company is consolidating its role in Europe, increasing launches of the upgraded Vega-C launcher and dedicating resources to the development of Vega-E, the next-generation launcher. The Vega-E project is fully funded thanks to a recent € 350 million contract signed with the European Space Agency (ESA) for development up to the ground qualification phase. The company led by Giulio Ranzo thus aims to strengthen European strategic autonomy in the space sector, in direct competition with giants such as SpaceX.

Avio’s acceleration occurs amid a strategic reshuffle of the Italian aerospace industry, marked by the clear disengagement of Leonardo. The main shareholder of Avio, with a 28.75% stake, chose not to participate in the capital increase, accepting the dilution of its holding. Leonardo’s decision, although anticipated by financial rumours, formalizes its exit from launchers, no longer considered strategic. This distancing was made official the same day as Avio’s shareholders’ meeting with the announcement of an agreement between Leonardo, Airbus and Thales to create a European joint-venture focused on space and satellite activities, explicitly excluding the launcher segment (see AVIONEWS 1 and 2). Leonardo’s reorientation, led by Roberto Cingolani, represents a reversal compared with the increase in its stake in Avio just five years earlier, in May 2020.

Despite the main shareholder’s withdrawal, the recapitalization is safeguarded thanks to a pre-underwriting agreement with Jefferies and Morgan Stanley, which have committed to cover any unsubscribed portion up to € 400 million. The Minister for Enterprises and Made in Italy (MIMIT), Adolfo Urso, had already confirmed in previous months that the Avio dossier was “under the attention of the Government", underscoring the Group’s national strategic importance. Among other shareholders, the Del Vecchio family holding, Delfin (about 4%), has expressed interest in evaluating participation in the capital increase.

The market response has been significant: despite Leonardo’s non-participation and the stock’s high volatility in recent weeks, Avio’s year-to-date performance, prior to the announcement, had recorded an increase of more than 220%, reflecting investors’ confidence in the growth potential of the plan, even without Leonardo’s direct participation.